| advertising message | An element of the creative mix comprising what the company plans to say in its advertisements and how it plans to say it—verbally or nonverbally.
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| advertising plan | The plan that directs the company's advertising effort. A natural outgrowth of the marketing plan, it analyzes the situation, sets advertising objectives, and lays out a specific strategy from which ads and campaigns are created.
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| advertising strategy | The methodology advertisers use to achieve their advertising objectives. The strategy is determined by the particular creative mix of advertising elements the advertiser selects, namely: target audience; product concept; communications media; and advertising message. Also called the creative mix.
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| bottom-up marketing | The opposite of standard, topdown marketing planning, bottom-up marketing focuses on one specific tactic and develops it into an overall strategy.
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| communications media | An element of the creative mix, comprising the various methods or vehicles that will be used to transmit the advertiser's message.
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| corporate objectives | Goals of the company stated in terms of profit or return on investment. Objectives may also be stated in terms of net worth, earnings ratios, growth, or corporate reputation.
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| creative mix | Those advertising elements the company controls to achieve its advertising objectives, including the target audience, the product concept, the communications media, and the advertising message. See also advertising strategy.
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| empirical research method | A method of allocating funds for advertising that uses experimentation to determine the best level of advertising expenditure. By running a series of tests in different markets with different budgets, companies determine the most efficient level of expenditure.
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| endcap promotion | A merchandizing method that uses special displays on shelving at the end of aisles in a store. Endcap promotions usually highlight sale merchandise or new products. Such promotions are often one part of a large promotion program that includes coupons, discounts, or other enticements.
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| integrated marketing communications (IMC) | The process of building and reinforcing mutually profitable relationships with employees, customers, other stakeholders, and the general public by developing and coordinating a strategic communications program that enables them to make constructive contact with the company/brand through a variety of media.
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| lifetime customer value (LTCV) | A measurement of a consumer's economic value to a company over the course of his or her entire lifetime which comes from developing lasting relationships.
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| marketing objectives | Goals of the marketing effort that may be expressed in terms of the needs of specific target markets and specific sales objectives.
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| marketing plan | The plan that directs the company's marketing effort. First, it assembles all the pertinent facts about the organization, the markets it serves, and its products, services, customers, and competition. Second, it forces the functional managers within the company to work together— product development, production, selling, advertising, credit, transportation—to focus efficiently on the customer. Third, it sets goals and objectives to be attained within specified periods of time and lays out the precise strategies that will be used to achieve them.
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| marketing strategy | The statement of how the company is going to accomplish its marketing objectives. The strategy is the total directional thrust of the company, that is, the how-to of the marketing plan, and is determined by the particular blend of the marketing mix elements (the 4 Ps) which the company can control.
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| need-satisfying objectives | A marketing objective that shifts management's view of the organization from a producer of products or services to a satisfier of target market needs.
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| objective/task method | A method of determining advertising allocations, also referred to as the budget-buildup method, that defines objectives and how advertising is to be used to accomplish them. It has three steps: defining the objectives, determining strategy, and estimating the cost.
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| percentage-of-sales method | A method of advertising budget allocation based on a percentage of the previous year's sales, the anticipated sales for the next year, or a combination of the two.
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| position | The way in which a product is ranked in the consumer's mind by the benefits it offers, by the way it is classified or differentiated from the competition, or by its relationship to certain target markets.
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| product concept | The consumer's perception of a product as a "bundle" of utilitarian and symbolic values that satisfy functional, social, psychological, and other wants and needs. Also, as an element of the creative mix used by advertisers to develop advertising strategy, it is the bundle of product values the advertiser presents to the consumer.
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| relationship marketing | Creating, maintaining, and enhancing long-term relationships with customers and other stakeholders that result in exchanges of information and other things of mutual value.
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| sales-target objectives | Marketing objectives that relate to a company's sales. They should be specific as to product and market, quantified as to time and amount, and realistic. They may be expressed in terms of total sales volume; sales by product, market segment, or customer type; market share; growth rate of sales volume; or gross profit.
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| share-of-market/share-of-voice method | A method of allocating advertising funds based on determining the firm's goals for a certain share of the market and then applying a slightly higher percentage of industry advertising dollars to the firm's budget.
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| situation analysis | A factual statement of the organization's current situation and how it got there. It includes relevant facts about the company's history, growth, products and services, sales volume, share of market, competitive status, market served, distribution system, past advertising programs, results of market research studies, company capabilities, and strengths and weaknesses.
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| stakeholders | In relationship marketing, customers, employees, centers of influence, stockholders, the financial community, and the press. Different stakeholders require different types of relationships.
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| SWOT analysis | An acronym for internal strengths and weaknesses and external opportunities and threats, which represent the four categories used by advertising managers when reviewing a marketing plan. The SWOT analysis briefly restates the company's current situation, reviews the target market segments, itemizes the long- and short-term marketing objectives, and cites decisions regarding market positioning and the marketing mix.
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| tactics | The precise details of a company's marketing strategy that determine the specific short-term actions that will be used to achieve its marketing objectives.
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| target audience | The specific group of individuals to whom the advertising message is directed.
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| top-down marketing | The traditional planning process with four main elements: situation analysis, marketing objectives, marketing strategy, and tactics or action programs.
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| value | The ratio of perceived benefits to the price of the product.
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