Term
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Definition
| Coordination of marketing and communication to influence attitude / behavior |
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Term
| Purposes of Marketing Communication |
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Definition
| Inform, Remind, Persuade, Build Relationships |
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Term
| Integrated Marketing Communication (IMC) |
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Definition
| Process used to plan, develop, execute and evaluate communication programs over time to audience |
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Term
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Definition
| Major communication elements that marketer controls |
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Term
| Elements of Promotion Mix (High Control to Low Control) |
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Definition
| Advertising -> Sales Promotion -> Personal Selling -> Direct Marketing -> Public Relations -> Word of Mouth |
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Term
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Definition
| Non-personal communication from sponsor using mass media |
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Term
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Definition
Add incentive to purchase item during a certain time period
** DOES NOT BUILD BRAND LOYALTY ** |
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Term
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Definition
| Communication activities that create or maintain a positive image of a firm and it's products |
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Definition
| Direct interaction between a company representative and a customer |
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Term
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Definition
| Word of mouth communication that consumers view as authentic |
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Term
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Definition
| using high profile entertainment or news that gets people to talk about the brand |
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Term
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Definition
| Creating entertaining or informative messages to be passed along from person to person |
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Term
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Definition
| Activities that give people a reason to talk about a product |
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Term
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Definition
| Unconventional marketing technique used to ambush (catch off guard) consumers with promotional content in places they are not expecting to encounter this kind of activity |
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Term
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Definition
| Marketing activities that attempt to give customers an opportunity to actually interact with the brand, thus enabling them to make more intelligent and informed purchase decisions |
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Term
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Definition
| Comments, opinions and reviews generated by consumers for other consumers to view, usually online. |
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Term
| Ethical Problems in Buss Marketing Occur When.. |
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Definition
| Consumers are deceived, Children or teens involved, Properties are damaged, Deceive or lie for clients, Shilling / Spam was used |
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Term
| Integrated Marketing Communication (ICM) Characteristics |
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Definition
| Begins with customer -> Creates a single voice -> Develops relationship with customer -> Two way communication -> Focuses on stakeholders, not just customers -> Generates a Continuous Stream of communication -> Focuses on changing behavior (getting customers to buy) |
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Term
| Steps to Develop IMC Plan |
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Definition
1) ID the audience
2) Establish communication objectives (Create awareness)
3) Determine and allocate the budget
4) Design the promotion mix
5) Evaluate the effectiveness of communication program |
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Term
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Definition
| Awareness -> Knowledge -> Desire -> Purchase -> Loyalty |
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Term
| If products are substitutes.. (Demand and Price) |
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Definition
Increase in the price of one will increase the demand for the other
Ex. Bananas and Strawberries (Interchangeable) |
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Term
| If one product is essential for use of the second product.. (Demand and Price) |
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Definition
Increase in price of one decreases demand for the other
Ex. Gas Prises Rise = Low demand for tires |
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Term
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Definition
| Demand is sensitive to price changes (Non Necessities) |
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Term
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Definition
| Demand does not depend on price (Necessities) |
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Term
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Definition
Cost of production that doesn't change
Ex. Rent |
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Term
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Definition
| Total of fixed and variable cost |
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Term
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Definition
| varies depending on the number of units produced |
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Term
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Definition
| Determines how many units a firm must produce or sell at a given price to cover costs |
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Term
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Definition
| Point where total cost = total revenue |
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Term
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Definition
| Analysis that uses cost and demand to find the price that will maximize profit |
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Term
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Definition
Cost / Revenue from producing / selling one more unit
-> Profit is maximized when marginal cost = marginal revenue |
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Term
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Definition
| Consumers grow price sensitive |
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Term
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Definition
| Consumers become used to price increases |
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Term
| Pricing Strategies Based on Cost |
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Definition
Cost-Plus Pricing -> Cost + X = Selling Price
-> X = Amount Charged above cost |
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Term
| Pricing Strategies Based On Demand |
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Definition
Firm bases the selling price on estimation of demand at different prices
Ex. Target Costing, Yield Management Pricing |
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Term
| Pricing Strategies Based on Competition |
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Definition
| Pricing items near, at, above or below the competition (Price Leadership - one firm sets price and others follow) |
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Term
| Pricing Strategies Based on Customers Needs |
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Definition
| Every Day Low Pricing - Prices are set to provide ultimate value to customers |
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Term
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Definition
| A ver high, premium price that a firm charges for a new, desirable product |
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Term
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Definition
| New product introduced at a very low price to encourage customers to purchase it |
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Term
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Definition
| New product is priced low for a limited period of time in order to lower the rise for a customer |
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Term
| Types of New Product Pricing |
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Definition
| Skimming Price, Penetration Price, Trial Price |
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Term
| Pricing for Individual Products |
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Definition
Two part pricing - Pay in two parts (Initial fee and monthly fees)
Payment Pricing - Break up price into multiple, smaller payments |
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Term
| Pricing for Multiple Products |
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Definition
Price Bundling - Selling two or more goods as a package
Captive Pricing - two products only work when used together, one is priced low, but other is high |
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Term
| Distribution Based Pricing |
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Definition
Pricing tactic that establishes how firms handle the cost of shipping products to customers
-> FOB Shipping Point / FOB Delivery
-> Basing Point Pricing - Customers pay shipping charges from a set point whether goods are shipped from there or not
-> Uniform Delivered Pricing - Standard shipping charge
->Freight Absorption - seller absorbs the total cost of transportation |
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Term
| Discounting for Channel Members |
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Definition
-> List Price - suggested retail price
-> Trade or Functional Discounts - Discount off list prices to members of the channel who perform various marketing functions
-> Quantity Discount - Reduced prices for purchases of larger quantities of a product
-> Cash Discount - 2% 10 days, net 30
-> Seasonal Discount - price reductions offered only during certain times of the year |
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Term
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Definition
| Business model that encourages giving products away for free because of the increase in profits that can be achieved by getting more people to participate in a market |
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Term
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Definition
| Price or price range in consumers' minds that they refer to in evaluating a product's price |
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Term
| Deceptive Pricing Practices |
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Definition
-> Going out of business sale
-> Bait and Switch - advertised price special is used to bait to get customers into the store with the intention of switching them to a higher priced item |
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Term
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Definition
| Setting a limited number of different specific prices, price points,for items in a product line |
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Term
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Definition
| State laws that prohibit suppliers from selling products below cost to protect small businesses from larger competitors |
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Term
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Definition
| Setting prices very low to attract customers in hopes that they will purchase other items |
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Term
| Illegal B2B Price Discrimination |
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Definition
| Robinson-Patman Act prevents firms from selling same product to different retailers and wholesaler at different prices if such practices lessen competition |
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Term
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Definition
| Two or more companies conspire to keep prices high |
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Term
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Definition
| Company sets a very low price to drive out competitors |
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Term
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Definition
| Non-personal communication that uses mass media to persuade or inform target audience |
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Term
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Definition
| A coordinated, comprehensive plan that carries our promotion objectives and results in a series of ads placed in media over a period of time |
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Term
| Limited vs Full Service Agency |
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Definition
| Limited provides one or more specialized services, Full provides most or all of the services needed to mount a campaign |
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Term
| Ethical Issues in Advertising |
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Definition
| Manipulative, deceptive / untruthful, offensive, creates stereotypes, convinces people to buy things they don't need |
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Term
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Definition
| Clarifies previous deceptive message |
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Term
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Definition
| Claims that cannot be proven to be true or untrue |
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Term
| Steps to Develop the Advertising Campaign |
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Definition
1) Understand target audience
2) Establish message and budget objectives
3)Create the ads
4)Pretest what the ads will say
5)Choose media type and chedule
6)Evaluate the advertising |
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Term
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Definition
| Process that turns a concept into an ad |
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Term
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Definition
| Central idea/theme of advertisement |
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Term
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Definition
| Minimize mistakes by getting consumer reactions before ad is run |
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Term
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Definition
| Developing strategies to use in advertising campaign |
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Term
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Definition
| Best "window" to reach target market |
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Term
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Definition
| Collecting info from consumer after seeing advertisement |
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Term
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Definition
| Communication medium that reaches people in public places |
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Term
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Definition
| Advertising media that transmit messages in public place where certain people congregate (Dr. Office, Airport) |
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Term
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Definition
| Form of advertising in which marketers integrate products into entertainment venues (American Idol uses coke cups) |
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Term
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Definition
Plan that specifies exact media to use and when to use it
-> Reach - percentage of target market will be exposed to media vehicle
-> Frequency - Average number of tiems a person in the target group will be exposed to the message
-> Gross Rating Points - Reach x Frequency - compares the effectiveness of different media vehicles
-> Cost per Thousand (CPM) - cost to deliver message to 1,000 people or homes
-> Advertising Exposure - degree to which the target market will see an advertising message place in a specific vehicle |
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Term
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Definition
| Promotions that focus on members of the trade, which include channel members |
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Term
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Definition
| Reimburses retailer for in store support of product |
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Term
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Definition
| Discount to retailer or wholesaler based on order volume |
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Term
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Definition
| Manufacturer and retailer share the cost |
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Term
| Ways to Increase Industry Visibility (Get Recognized) |
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Definition
| Trade Shows, Promotional products, POP displays, Incentive programs |
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Term
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Definition
| Bonus paid by manufacturer to salesperson for selling their product |
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Term
| Price Based Consumer Sales Promotion |
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Definition
| Coupons, Price deals, Frequency programs, Special packs |
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Term
| Attention Getting Consumer Sales Promotions |
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Definition
| Contests (Skill), Sweepstakes (Chance), Premiums (Free item for purchasing certain product), Sampling |
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Term
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Definition
| Intro new products, Influence government legislation, Enhance image, Recognize community involvement |
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Term
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Definition
| Coordinated effort to communicate with one or more of the firm's publics |
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Term
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Definition
| Information firm gives to median intended to win publicity |
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Term
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Definition
| Unpaid communication about an organization that gets media exposure |
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Term
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Definition
Occurs when a company representative interacts directly with customer to communicate about a good or service
Important when firm is using push strategy, B2B contexts, inexperienced consumers, infrequently bought items, good/service is complex or costly |
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Term
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Definition
-> Order Taker - facilitates transactions that customer initiates
-> Technical Specialist - Mainly assist in product demonstrations
-> Missionary Salesperson - Responsible for finding new customers (Does NOT complete sales)
-> New Business Sales Person - person responsible for finding ew customers |
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Term
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Definition
| Personal selling that focuses on making immediate sales with little or no relationship |
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Term
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Definition
| Personal selling that maintains long term relationships with profitable customers |
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Term
| Steps of the Creative Selling Process |
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Definition
1) Prospect and Qualify
- Prospect - ID potential customers
2) Preapproach - developing info of prospective clients
3) Approach - contacting the prospect
4) Sales Presentation - value proposition is communicated to customer
5) Handle Objections
6) Close the sale - asks prospect to buy
7) Follow up - Activities after the sale |
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Term
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Definition
| Process of planning, implementing, and controlling the personal selling function of an organization |
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Term
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Definition
| Set of customers for whom a particular salesperson is responsible |
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Term
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Definition
| Teaches sales people about firm, its products, how to develop skills, knowledge and attitudes to succeed |
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Term
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Definition
| any direct communication to a consumer or business recipient designed to generate a response (Place an order) |
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Term
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Definition
| Brochure/Pamphlet that offers goods and services |
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Term
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Definition
| Promotional activities on mobile devices |
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Term
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Definition
| Allows consumer to sepsond y immediately contacting the provider |
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Term
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Definition
| Series of activities directed at designing, producing, marketing, delivering and support any product |
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Term
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Definition
| All activities necessary to turn raw materials into a good or service and put it in the hands of the consumer |
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Term
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Definition
| Management of flows among firms in the supply chain to maximize total profitability |
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Term
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Definition
| Company contracts with a specialist firm to handle all or part of its supply chain operations |
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Term
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Definition
| Series of firms or individuals that facilitate the movement of product from producer to consumer |
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Term
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Definition
| Raw Materials -> Parts Suppliers -> Manufacturer -> Reseller -> Consumer |
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Term
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Definition
| firms or individuals that help move product from producer to consumer (Wholesaler or retailer) |
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Term
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Definition
| Functions of channel intermediaries that make the purchase process easier for customers and manufacturers (Wal-Mart) |
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Term
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Definition
Eliminating traditional intermediaries
-Cut costs and improve efficiency |
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Term
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Definition
| Collecting, organizing, storing and retrieving firms informational assets |
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Term
| Wholesaling Intermediaries |
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Definition
| Firms that handle the flow of products from manufacturer to consumer |
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Term
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Definition
| Buy goods from manufacturers, take title, and sell to other retailers |
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Term
| Merchandise Agents or Brokers |
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Definition
| Provide services in exchange for commission but never take title |
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Term
| Types of Distribution Channels |
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Definition
-> Consumer Channels - Simplest channel
-> B2B Channels - flow of goods from producer to business consumer
-> Dual Distribution System - more than one channel is used
-> Hybrid Marketing System - many channels and communication methods used to server target market |
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Term
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Definition
| Number of distinct categories of intermediaries that populate a channel of distribution |
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Term
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Definition
| Fee paid in exchange for agreeing to place a manufacturer's products on a retailer's valuable shelf space |
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Term
| Steps in Distribution Planning |
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Definition
1) Develop distribution objectives
2) Evaluate influences (Internal and External)
3) Choose a Distribution strategy
- Conventional - multilevel distribution channel . in which members are independent
- Vertical - formal cooperation among members . of channel manufacturing, wholesaling and . retail levels
- Horizontal - two or more firms at same level . work together
- Intensive Distribution - selling a product . through all suitable venues that will sell it
- Exclusive - selling product only through one . outlet in a particular region
- Selective - fewer outlets than intensive, more than exclusive
4) Develop distribution tactics - select channel partners, manage the channel |
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Term
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Definition
| firm at one level that takes a leadership role, establishing norms, based on it's relative power |
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Term
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Definition
| storing goods in anticipation of sale or transfew to another channel member |
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Term
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Definition
| the process of designing, managing and improving the movement of products through the supply chain |
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Term
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Definition
-> Railroad - Heavy items
-> Water - Bulky items, international
-> Trucks - consumer goods in short haul
-> Air - High Value
-> Pipeline - Oil
-> Internet |
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Term
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Definition
| Activities to ensure goods are always available to meet customers demand Ex. RFID, JIT inventory |
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Term
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Definition
-> Central Business District - DT business area
-> Shopping Center - Group of establishments owned and managed as a single property
-> Freestanding
-> Non Traditional - Kiosks, Carts |
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Term
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Definition
| Geographic zone that accounts for the majority of a stores sales and customers |
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Term
| Wheel of Retailing Hypothesis |
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Definition
| Explains how retail stores change, becoming more and more upscale |
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Term
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Definition
| Retailers are born, grow, mature and die |
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Term
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Definition
| Shoplifting, Employee Theft, Retail Borrowing |
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Term
| Classifying by What They Sell -> Merchandise Mix |
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Definition
| total set of products offered |
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Term
| Classifying by Level of Service |
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Definition
| Self Service, Limited Service, Full Service <- Trained sales associates |
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Term
| Classifying by Merchandising Selection |
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Definition
Merchandise Breadth - number of different product lines available
Merchandise Depth - Variety of choices available for each specific product |
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Term
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Definition
| Convenience Stores, supermarket, specialty store, discount store, department store, hypermarket |
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Term
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Definition
| Any method used to make an exchange without a store |
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Term
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Definition
Door to Door
Part Plan - relies on people getting caught up in buying things
Multilevel Network - Pyramid Scheme
Automatic Vending |
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Term
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Definition
| the way a retailer is perceived in the marketplace relative to competition |
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Term
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Definition
| Consumers who engage in online shopping because of the experiential benefits they receive |
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Term
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Definition
| Use of color, light, scents, furnishings and other design elements to create a desired store image |
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Term
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Definition
| the direction in which shoppers will move through the store and which areas will pass or avoid |
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