Business Studies Course - Marketing
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Advertising strategy - Functions

Read this discussion between Stephen Jones, the Brand Manager for N.E wear, and Sandra Sean of Verity. Try to find the technical terms on the page opposite for those parts of the discussion coloured red. Check with "Answers" at the bottom of the page.

Stephen: 'Well, we seem to have all the media hit with saturation coverage. Now we will have to see how high the (A.) cost of the advertising is for each item of clothing that we sell.
Remember we also have to include (B.) the money provided to our distributors to advertise our brand for us.
And of course there is (C.) the money we have paid your advertising agency for placing all the advertisements for us - that's another 10% on the budget.'

Sandra: 'Ah, but Steve, we are worth it. Remember, I got you that (D.) special rate for advertising on more than one vehicle (e.g. TV and magazine) with the same company?
That's a big saving already. And I was able to arrange (E.) that the advertisements were shown more at particular times of the day to reach a particular audience.
I know we have placed a lot of adsvertisements, but doing an intense campaign gives you a good (F.) discounted advertising price, based on volume or frequency of media placement.'

Stephen. 'Yes. Well, our (G.) total audience who have seen at least one advertisement once seem to be very good. Brand awareness is sky-high.'

Sandra:'Yes, I think we have a success. But don't trust me - let's see what our (H.) defining advertising goals for measured advertising results tests tell us. Then we will know if it's all been worth it!'


1. Combination rate   

2. Earned rate   

3. Cost per unit item   

4. Agency commission   

5. Cumes   

6. Flighting   

7. Advertising allowance   

8. DAGMAR