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