MKT Test 5 Study Guide: Advertising, PR, Personal Selling, and Sales Promotion

Comprehensive vocabulary flashcards covering advertising objectives, budgeting, media scheduling, campaign measurement, public relations, personal selling, and sales promotions from the MKT Test 5 study guide.

Target Audience

The specific group of people that advertisements are aimed at, defined by demographic, geographic, lifestyle, and attitude characteristics.

Sales-Based Objectives

Advertising goals focused on measurable financial results, such as increasing unit sales, raising sales by a certain percentage, or expanding the firm's market share.

Communication-Based Objectives

Advertising goals focused on consumer mindset, such as increasing brand awareness, improving consumer attitudes and knowledge, and creating awareness of positive consumer behavior.

Percentage of Sales Budgeting

The most common method used by marketers to set advertising budgets, compared to the objective-and-task and competition-matching approaches.

Continuous Media Scheduling

An advertising schedule where ads run steadily throughout the year, best suited for products consumed on a consistent basis, such as toothpaste.

Flighting Media Scheduling

An advertising schedule where ads run in spurts with periods of heavy advertising alternating with periods of no ads, best suited for products with seasonal patterns, such as Easter eggs.

Pulsing Media Scheduling

An advertising schedule that combines continuous and flighting strategies by running ads year-round with bursts of heavier spending during peak seasons, such as for swimsuits.

Reach

The percentage of the target audience exposed to an advertisement at least once during a specific time period.

Frequency

The number of times individuals within a target audience are exposed to an advertisement.

Gross Rating Points (GRP)

A measurement of the total communication impact of an advertising campaign, determined by combining reach and frequency.

Pre-tests

Evaluations performed before an advertising campaign begins to judge the potential effectiveness of the message.

Post-tests

Evaluations performed after an advertising campaign has run to determine how well it met its objectives.

Recognition Test

A post-test method where respondents are shown the actual advertisement and asked if they remember having seen it.

Unaided Recall Test

A post-test method where respondents are asked to identify advertisements they have seen recently without any clues or assistance to jog their memory.

Aided Recall Test

A post-test method where respondents are asked to identify recent advertisements after being given clues, prompts, or list items to jog their memory.

Ad Agencies

Internal departments or outside independent firms that help companies create and execute advertisements, compensated through service fees and/or a percentage of commission.

Public Relations (PR)

Communication efforts used to create and maintain favorable relations between an organization and its stakeholders using tools like news releases, feature articles, and press conferences.

Stakeholders

People with a direct interest in an organization as a whole, as contrasted with target audiences who are specifically interested in a product.

Personal Selling

A promotional element that gives marketers the greatest freedom to adjust messages, being the most precise and effective method, but also the most expensive and difficult to staff.

Qualifying Prospects

The process of assessing potential leads to determine whether they represent a good fit, have indicated interest, and possess the ability, willingness, and authority to purchase.

Inside Sales

Sales personnel who support the sales process internally by taking orders, following up on deliveries, and providing technical information.

Sales Enablement

The organizational function that provides salespeople with the materials, insights, and tools they need to effectively engage target buyers.

Customer Success Teams

Internal teams responsible for making sure products help customers achieve their intended goals after purchase.

Account Management

A sales function focused on long-term client relationships with the primary responsibilities of customer retention, upselling, and cross-selling.

Team Selling

A sales approach using a diverse group of specialists led by a salesperson to conduct the personal selling process.

Sales Promotion

An activity or material designed to induce resellers or salespeople to sell a product, typically used in the short term to facilitate personal selling, advertising, or both.

Couponing

The most common consumer sales-promotion technique that reduces the price of a product, with typical redemption rates of $0.5\%$ to $2\%$ for printed versions, $2.7\%$ for desktop email, $8\%$ to $16\%$ for smartphones, and $15\%$ to $25\%$ for email/text.

Premium Money (Spiff)

Extra compensation provided to salespeople for pushing a specific line of goods, most effective when personal selling plays a vital role in the marketing effort.

Sales Contests

Trade promotions that motivate participation across all distribution levels, though their positive sales impacts are typically temporary.

Buy-Back Allowances

Trade promotional sums paid to foster channel cooperation and stimulate repurchasing of products, which can carry high financial costs for the manufacturer.

Buying Allowances

Temporary price reductions offered to resellers to incentivize purchases, carrying the risk that buyers purchase excess bulk at reduced prices, diminishing profit.

Premiums (Consumer Premiums)

Items offered free or at minimal cost as a bonus for purchasing a product, which perform best when the brand has high equity and there is a strong fit with the primary product.

Sampling

The most expensive form of sales promotion due to high production and distribution costs, but highly effective because consumers frequently purchase after trying a product for free.

Refunds

A sales-promotion tool that returns a specified amount of money when a consumer mails in proof of purchase, usually applied to multiple product purchases.

Rebates

A sales-promotion tool where a consumer receives a specified amount of money back for making a single product purchase.

Loyalty and Frequent-User Programs

Promotional mechanisms that allow organizations to track individual customer purchasing habits while providing periodic discounts and rewards.

Co-operative (Co-op) Advertising

An arrangement where a manufacturer agrees to pay a specific portion of a retailer's media advertising costs once the retailer provides proof that the advertisement ran.