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Advertising and Promotions Ch 14
Advertising and Promotions, 9th edition, Ch 14
20
Marketing
Undergraduate 4
12/11/2012

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Term
Direct Marketing
Definition
the system of IMC by which organizations communicate directly with target customers to generate a response or transaction (ie: an inquiry, purchase, or vote).
Term
Peter Bennett's definition of DM
Definition
activities which seller effects the exchange of goods/services with buyer and directs effort to target using one or more direct response media vehicles for the purpose of soliciting a response
Term
Direct response media
Definition
direct mail, telemarketing, interactive TV, print, web, seen-on-tv, etc.
Term
Database marketing
Definition
use of specific info (databases) about individual customers/prospects to implement more effective and efficient marketing communications
Term
mailing lists
Definition
databases constitute ability to segment market by names, income, location
Term
RFM scoring method
Definition
Recency, Frequency, and Monetary transactions
Term
One-step approach
Definition
using medium to directly obtain an order (seen-on-tv, buy now)
Term
Two-step approach
Definition
first marketing effort is used to screen/qualify potential buyers. Second effort generates response (cold calling, then follow up)
Term
Direct mail
Definition
unsolicited mail or junk mail
Term
Catalogs
Definition
specific to industry for consumer and b2b
Term
Broadcast media--TV
Definition
referred to as short-form programs (drugs, toiletries, audio/video, household products – BILLY MAYS here!)
Term
Broadcast media--Infomercials
Definition
30 – 60 minutes (THE GAZELLE or MAGIC BULLETT)
Term
Least effective broadcast media
Definition
Print
Term
Repetitive person-to-person selling
Definition
salesperson visits home/work to sell frequently purchased items (Amway, hotel marketers)
Term
Nonrepetitive person-to-person selling
Definition
visits home/work to sell infrequently bought items (encyclopedias and bibles)
Term
Party plans
Definition
salesperson offers products/services to groups through home/office parties and demonstrations (tupperware and party services)
Term
Cost per order (CPO)
Definition
advertisers can evaluate the relative effectiveness of an ad in a few minutes based on number of calls generated. By running ad on different stations, a direct marketer can determine effectiveness of the medium itself.
Term
Cost per order (CPO)
Definition
advertisers can evaluate the relative effectiveness of an ad in a few minutes based on number of calls generated. By running ad on different stations, a direct marketer can determine effectiveness of the medium itself.
Term
Disadvantages of Direct-response
Definition
 Image factors: unsolicited junk mail
 Accuracy: would depend on accuracy of list used
 Content Support: mood creation is limited and undesirable
 Rising Costs: increasing postal rates and printing costs
 Do Not Contact List: both land and cell lines considering ethical perspective
Term
Advantages of Direct-response:
Definition
 Selective reach:large number of people with minimal waste
 Segmentation capabilities: purchasing lists of prospects/clients
 Frequency:depending on medium, could build frequency
 Flexibility: creativity of product information
 Timing: shorter response time than other vehicles
 Personalization: with all demographic and personal info from listings
 Costs: specificity reduces wasting costs
 Measures of Effectiveness: no other medium gives better immediacy of feedback
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