Term
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Definition
| communication by marketers that informs, persuades, and reminds potential buyers of a product in order to influence an opinion or elicit a response |
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Term
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Definition
| a plan for the optimal use of the elements of promotion: advertising, public relations, personal selling, and sales promotion |
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Definition
| the combination of promotional tools – including advertising, public relations, personal selling, and sales promotion – used to reach the target market and fulfill the organization’s overall goals |
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Term
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Definition
| impersonal, one-way mass communication about a product or organization that is paid for by a marketer |
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Definition
| the marketing function that evaluates public attitudes, identifies areas within the organization the public may be interested in, and executes a program of action to earn public understanding and acceptance |
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Definition
| marketing activities – other than personal selling, advertising, and public relations – that stimulate consumer buying and dealer effectiveness |
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Definition
| a purchase situation involving a personal, paid-for communication between two people in an attempt to influence each other |
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Definition
| the process by which meanings are exchanged or shared through a common set of symbols |
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| Two Major Categories of communication |
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Definition
Interpersonal communication: direct, face-to-face communication between two or more people
Mass communication: the communication of a concept or message to large audiences |
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Term
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Definition
| the originator of the message in the communication process |
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Definition
| the conversion of a sender’s ideas and thoughts into a message, usually in the form of words or signs |
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Definition
| a medium of communication – such as a voice, radio, or newspaper – for transmitting a message |
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Definition
| interpretation of the language and symbols sent by the source through a channel |
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Definition
| the person who decodes a message |
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Definition
| anything that interferes with, distorts, or slows down the transmission of information |
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Definition
a model that outlines the process for achieving promotional goals in terms of stages of consumer involvement with the message
Attention: Advertising and public Relations Effective
Interest: Advertising, Public Relations and Personal Selling Effective
Desire: Sales Promotion and Personal Selling Effective
Action: Personal Selling Effective Advertising Least Effective |
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Term
| Stage in the Product Life Cycle - Introduction |
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Definition
| Heavy advertising and public relations to build awareness; sales promotion to induce trial; personal selling to obtain distribution |
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| Stage in the Product Life Cycle - Growth |
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Definition
| Heavy advertising and public relations to build brand loyalty; decreasing use of sales promotion; personal selling to maintain distribution |
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Term
| Stage in the Product Life Cycle - Maturity |
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Definition
| Advertising slightly decreased – more persuasive and reminder in nature; increased use of sales promotion to build market share; personal selling to maintain distribution |
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| Stage in the Product Life Cycle - Decline |
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Definition
| Advertising and public relations drastically decreased; sales promotion and personal selling maintained at low levels |
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Term
| Type of Buying Decision - Routine |
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Definition
(buying toothpaste)
The most effective promotion calls attention to the brand or reminds the consumer about the brand
Advertising and, especially, sales promotion are the most productive promotion tools to use for routine decisions |
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| Type of Buying Decision - Limited |
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Definition
(beer drinker buying wine that he’s not familiar with)
Advertising and public relations help establish awareness for the good or service |
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Term
| Type of Buying Decision - Complex |
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Definition
(buying a car)
Consumers making complex buying decisions that are more extensively involved
o They rely on large amounts of information to help them reach a purchase decision |
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Term
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Definition
| Money, or the lack of it, may easily be the most important factor in determining the promotional mix |
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Term
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Definition
| Promote to the Next Level in the Channel |
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Term
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Definition
| Promote to Final Consumer |
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Term
| Integrated Marketing Communications (IMC) |
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Definition
| the careful coordination of all promotional messages for a product or a service to assure the consistency of messages at every contact point where a company meets the customer |
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Term
| Effects of Advertising on Consumers |
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Definition
Average person exposed to hundreds of ads each day
Can change consumer’s negative attitudes or create a positive frame of reference for brand-loyal customers
Can affect consumer ranking of a brand’s attributes |
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Term
| Institutional Advertising |
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Definition
| a form of advertising designed to enhance a company’s image rather than promote a particular product |
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Term
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Definition
| a form of advertising that touts the benefits of a specific good or service |
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Term
| Pioneering (Informational) Advertising |
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Definition
| a form of advertising designed to stimulate primary demand for a new product or product category |
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Term
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Definition
| a form of advertising designed to influence demand for a specific brand |
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Term
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Definition
| a form of advertising that compares two or more specifically named or shown competing brands on one or more specific attributes |
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Definition
| a series of related advertisements focusing on a common theme, slogan, and set of advertising appeals |
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Term
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Definition
| the series of decisions advertisers make regarding the selection and use of media, allowing the marketer to optimally and cost-effectively communicate the message to the target audience |
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Term
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Definition
| designation of the media, the specific publications or programs, and the insertion dates of advertising |
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Term
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Definition
| a public relations strategy that involves getting a product, service, or company name to appear in a movie, television show, radio program, magazine, newspaper, video game, video or audio clip, book, or commercial for another product; on the Internet; or at special events |
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Term
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Definition
| a public relations strategy in which a company spends money to support an issue, cause, or event that is consistent with corporate objectives, such as improving brand awareness or enhancing corporate image |
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Term
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Definition
| a coordinated effort to handle all the effects of unfavorable publicity or of another unexpected unfavorable event |
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Term
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Definition
sales promotion activities targeting the ultimate consumer
Rebate, Coupon, Premium, Frequent Buyer Program, Contest Sampling |
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Term
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Definition
| a cash refund given for the purchase of a product during a specific period |
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Term
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Definition
| a certificate that entitles consumers to an immediate price reduction when they buy the product |
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Term
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Definition
| an extra item offered to the consumer, usually in exchange for some proof of purchase of the promoted product |
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Term
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Definition
| a loyalty program in which loyal consumers are rewarded for making multiple purchases of a particular good or service |
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Term
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Definition
| a promotional program that allows the consumer the opportunity to try a product or service for free |
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Term
| Point-of-Purchase Display (P-O-P¬) |
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Definition
| a promotional display set up at the retailer’s location to build traffic, advertise the product, or induce impulse buying Overcoming Low Redemption Rates |
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Term
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Definition
| sales promotion activities targeting marketing channel member, such as a wholesaler or retailer |
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Term
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Definition
| a price reduction offered by manufacturers to intermediaries, such as wholesalers and retailers |
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Term
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Definition
| money offered to channel intermediaries to encourage them to “push” products – that is, to encourage other members of the channel to sell the products |
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Term
| Personal selling is more important if: |
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Definition
•The product has a high value
•It is a customer-made product
•There are few customers
•The product is technically complex
•Customers are concentrated |
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Term
| Relationship Selling (consultative selling) |
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Definition
| a sales practice that involves building, maintaining, and enhancing interactions with customers in order to develop long-term satisfaction through mutually beneficial partnerships |
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Term
| Sales Process (sales cycle) |
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Definition
| the set of steps a salesperson goes through in a particular organization to sell a particular product or service |
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Term
| Lead Generation (prospecting) |
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Definition
| identification of those firms and people most likely to buy the seller’s offerings |
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Term
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Definition
| a recommendation to a salesperson from a customer or business associate |
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Term
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Definition
| a process of finding out about potential clients from friends, business contacts, coworkers, acquaintances, and fellow members in professional and civic organizations |
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Term
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Definition
| a form of lead generation in which the salesperson approaches potential buyers without any prior knowledge of the prospects’ needs or financial status |
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Definition
determination of a sales prospect’s:
•Recognized Need
•Buying Power
•Receptivity & Accessibility |
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Term
| Pre-approach or “Homework” |
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Definition
| a process that describes the “homework” that must be done by a salesperson before he or she contacts a prospect |
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Term
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Definition
| – a determination of the customer’s specific needs and wants and the range of options the customer has for satisfying them |
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Term
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Definition
| a formal written document or professional presentation that outlines how the salesperson’s product or service will meet or exceed the prospect’s needs |
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Term
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Definition
| a formal meeting in which the salesperson presents a sales proposal to a prospective buyer |
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Term
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Definition
| the process during which both the salesperson and the prospect offer special concessions in an attempt to arrive at a sales agreement |
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Term
| Return on Investment (ROI) |
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Definition
| net profit after taxes divided by total assets |
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Term
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Definition
| a company’s product sales as a percentage of total sales for that industry |
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Term
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Definition
| a pricing objective that maintains existing prices or meets the competition’s prices |
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Term
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Definition
| the quantity of a product that will be sold in the market at various prices for a specified period |
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Term
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Definition
| a situation in which consumer demand is sensitive to changes in price |
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Term
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Definition
| a situation in which an increase or a decrease in price will not significantly affect demand for the product |
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Term
| Factors that affect elasticity of demand: |
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Definition
• Availability of substitutes
• Price relative to purchasing power
• Product durability
• A product’s other uses
• Rate of inflation |
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Term
| Average Variable Cost (AVC) |
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Definition
| total variable costs divided by quantity of output |
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Term
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Definition
| total costs divided by quantity of output |
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Term
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Definition
| a method of determining what sales volume must be reached before total revenue equals total costs |
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Term
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Definition
| the cost of buying the product from the producer, plus amounts for profit and for expenses not otherwise accounted for |
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Term
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Definition
| a basic, long-term pricing framework, that establishes the initial price for a product and the intended direction for price movements over the product life cycle |
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Term
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Definition
| a pricing policy whereby a firm charges a high introductory price, often couple with heavy promotion |
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Term
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Definition
| a pricing policy whereby a firm charges a relatively low price for a product initially as a way to reach the mass market |
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Term
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Definition
| charging a price identical to or very close to the competition’s price |
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Term
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Definition
| the practice of charging a very low price for a product with the intent of driving competitors out of business or out of a market |
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Term
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Definition
| setting the price at a level that seem to the customer to be a good price compared to the prices of other options |
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Term
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Definition
| the practice of offering a product line with several items at specific price points |
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Term
| Leader Pricing (loss-leader pricing) |
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Definition
| a price tactic in which a product is sold near or even below cost in the hope that shoppers will buy other items once they are in the store |
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Term
| Odd-Even Pricing (psychological pricing) |
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Definition
| a price tactic that uses odd-numbered prices to connote bargains and even-numbered prices to imply quality |
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Term
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Definition
| marketing two or more products in a single package for a special price |
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