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Details Title: Principles of Marketing Description: University of Milwaukee WI - BUSADM360 - Book:Essentials of Marketing (Perrault&McCarthy) Total Flash Cards: 76 Created: 05/10/2007 19:51:40	To study from this set of flash cards, or to create your own your own study flash cards, register HERE. If you are already a registered user, CLICK HERE.
Cards Term Define Promotion Definition Communicating information between seller and potentioal buyer or others in the channell to influence attitudes and behavior. Term List the three major categories of promotion. Definition Personal Selling Mass Selling Sales Promotion Term List the two major types of Mass Selling Definition Advertising Publicity Term Define Personal Selling Definition Direct spoken contact between sellers and customer. (SALESPERSON) Term Define Mass Selling Definition Communicating with large number of potential custmers at the same time Term Define Advertising Definition Any PAID form of non-personal presentation of ideas goods or services Term What does AIDA stand for? Definition Attention Interest Desire Action Term What are the three basic promotion objectives Definition Informing Persuading Reminding Term Explain the "Informing" objective of promotion. Definition Education Term When would you use persuasive marketing Definition During the Evaluation, Trial, and decision stages of the adoption process. Term What is the communication model Definition Source -> Encoding -> Message Channel -> Decoding -> Receiver (Feedback from receiver to source) (Noise throughout model) Term What are the objective of a Direct Response Promotion Definition To solict immediate feedback (a direct response) from the customer. Term Define "Push" and "Pull" Marketing Definition Push - Promoting to Wholesalesrs & Retailers Pull - Promoting to customers so that they will request the product from wholesalers & retailers. Term Name the five adopter groups. Definition Innovators Early Adopters Early Majority Late Majority Laggards & Non Adopters Term Describe Innovators Definition Innovators - First to adopt, eager to tey new technologies. Typically young & well educated Term Describe Early Adopters Definition Early Adopters - younger more mobile and creative than older adopters, unlike innovators they have few contacts outside their own social group or community Term Describe the "Early Majority" Definition Early Majority - Avoid risk and wait until early adopters have tried it. Term Describe the "Late Majority" Definition Late Majority - Cautious about new ideas, often older and more set in their ways. Term Laggards & Non Adopters Definition Suspicous of new ideas, older and less well educated. Very late to adopt if ever. Term Promotion over the life cycle: How does it change between market introduction and market growth Definition Market Introduction - builds primary demand Market Growth - Develops selective demand (Our brand is best) Term List the alternative methods to setting a marketing budget Definition Percentage of Sales Task Method Term Order Taker Definition Sell to regular or established customers and maintain relationshops with customers Term Order Getter Definition Concerned with establishing relationships with new customers and developing new business Term Sales support Definition Help order-oriented salespeople. They enhance the customer relationship and focus on getting sales in the long run. Term Types of Sales Support Definition Missionary Salespeople Technical Specialist Term Missionary Salespeople Definition Develop goodwill and stimulate demand. Can: help middlemen train their salespeople and often take orders for delivery. Term Technical Specialist Definition Provide technical assistance to the customer. Term Three types of sales compensation Definition Straight Salary Straight Commision Combiniation Term Straight Salary Definition Requires closer supervision, often for a sales role that involves other sales-support activities. Term What are the three basic presenational approaches Definition Prepared Sales Presentation Consultative Selling Approach Selling Formula Approach Term Prepared Sale Presentation Definition Memorized presentation that is not adapted to each individual customer. Term Consultative Selling Approach Definition Involves a good understanding of the individual customer's needs before trying to close the sale. Term The selling formula approach Definition Starts with a prepared presentation outline and leads the customer through logical steps to a final close Term How much is spent on advertising in the US annualy Definition $236 Billion in 2002 Term What part of advertising accounts for the most spending. Definition Media Time & Space Term Pioneering Advertising Definition Category Builiding - Focuses on building demand for a product category rather than demand for a specific product Term Competetive Advertising Definition Tries to develop selective demand for a sepcific brand. Term Reminder Advertising Definition Tries to keep a product's name before the public. Term Three types of Competetive Advertising Definition Direct Indirect Comparative Term Describe direct advertising Definition Aims for an immediate buying action. (think QVC) Buy Now! Term Describe Indirect Advertising Definition Points out product advantages to affect future buying decisions Term Comparative Advertising Definition Making a specific comparision to one of you competitors using their product name. (Tide is better than Shout .... ) Term What is cooperative advertising Definition Involves middlemen and producers sharing in the cost of ads. Term Define Copy Thrust Definition What the words and illustrations should communicate Term What services do advertising agencies provide Definition Planning and handling of mass-selling details for advertisers. Sometimes: Marketing Strategy Planning, Market Research, Product&Pacakge Development, and sales promotion Term How are advertising agencies typically paid? Definition 15% commision on media and production costs. Term What's the FTC's role in monitoring advertising Definition To monitor unfair or deceptive business practices. Including decptive advertising. Term What is the price equation? Definition Price = Something of Value Term Pricing Objectives: Target Return Definition Sets a specific level of profit as an objective Term Pricing Objectives: Maximize Profits Definition Aim at turning a profit Term Pricing Objectives:Profit Maximization Definition Pricing at a point that will acheive the highest possible profit Term Pricing Objectives: Dollar or Unit Sales Growth Definition Sets a price for attaining a percent of market share, sales $ ammount, or unit target. Term Pricing Objectives: Status Quo Definition Don't rock the boat. price near competitors and compete on non-price items. Term Introductory Price Dealing vs Penetration Pricing Definition Introductory price dealing is a temporary reduction in prices (like Mach 4 razors) Penetration pricing is a permanent low price to foster adoption (XBOX360) Term Cummulative Quantity Discounts Definition discount for buying a large ammount over a time period Term Noncumulatie quantity discounts Definition apply to an individual order, encourage one time large orders Term Seasonal Discounts Definition offer to encourage buyers to buy earlier than present demand requires. Term Cash Disconts Definition Usually part of billing terms. 2/10, net 30. Term trade discount (fucntional discount) Definition given to channel members for the job they are going to do.. Term Stocking Allowances Definition Paying retailers for shelf space Term Advertising Allowances Definition Paying middlement to advertise Term Push Money Definition spiffs Term Zone pricing Definition Charging an average freight charge to all buyers within a specific geographic region. Term What legislation addresses price fixing. Definition Sherman Act & FTC act Term What legislation addresses Price discrimination Definition Robinson-Patman Act Term What is meant by a stock turn rate? Definition The number of times that average inventory is sold in a year Term Value in use pricing Definition Determining what a product is worth in dollar savings or production and pricing below that. Term Reference Pricing Definition The price a consumer expects to pay Term Leader Pricing Definition Setting some very low prices to get customers into retail stores. Term Bait Pricing Definition Setting some very low prices to attract customers but trying to sell more expensive models or brands once the consumer is in the store. Term Psychological pricing Definition Setting prices that have special appeal to targetcustomers Term Odd-even pricing Definition setting prices that end in certain numbers. Ex: 98.95 Term Price Lining Definition Different pricing tiers $10 Cars $20 cars Term Prestige pricing Definition Setting the price high to convey exlusivity or luxury Term demand backward pricing Definition Figuring out what the consumer expects and backing out the costs. Term Merchant Wholesalers vs Agent Middlemen Definition Merchant Wholesalers take title to product. Agent Middlement do not.