MK 3010 FINAL EXAM

Promotion

Communicating information between the seller and potential buyer or others in the channel to influence attitudes and behavior

Personal selling

Involves direct spoken communicating between sellers and potential customers

Mass selling

Communicating with large numbers of potential customers at the same time

Advertising

any paid for of nonpersonal presentation of ideas, goods, or services by an identified sponsor

Sales promotion

refers to promotion activities--other than advertising, publicity, and personal selling-- that stimulate interest, trial, or purchase by final customers or others in the channel

Publicity

any unpaid form of nonpersonal presentation of ideas, goods, or services

Sales managers

those concerned with managing personal selling

Advertising managers

those who manage their company's mass-selling effort--in television, newspapers, magazines, online and social media sites

Sales promotion managers

Those who manage their company's sales promotion effort.

Public relations

Communications with noncustomers, including the press, labor, public interest groups, stockholders, and the govt.

Integrated marketing communications

The intentional coordination of every communication from a firm to a target customer to convey a consistent and complete message

The AIDA model

1. get ATTENTION
2. Hold INTEREST
3. arouse DESIRE
4. obtain ACTION

Communication process

A source trying to reach a receiver with a message

Source

the sender of a message

Receiver

potential customer

Noise

any distraction that reduces the effectiveness of the communication process

Encoding

The source in the communication process deciding what it wants to say and translating it into words or symbols that will have the same meaning to the receiver

Decoding

The receiver translating the message

Message channel

the carrier of the message

Pushing

Using normal promotion effort -- personal selling, advertising, and sales promotion -- to help sell the whole marketing mix to possible channel members

Pulling

Using promotion to get consumers to ask intermediaries for the product

Adoption curve

Shows when different groups accept ideas

Innovators

The first to adopt new products

Early adopters

The second group in the adoption curve to adopt a new product. These people are usually well respected by their peers and often are opinion leaders

Early majority

Those who avoid risk and wait to consider a new idea after many early adopters have tried it -- and liked it

Late majority

Those who are cautious about new ideas. often they are older and more set in their ways, so they are less likely to follow early adopters.

Laggards / Nonadopters

Those who prefer to do things the way they've been done in the past and are very suspicious of new ideas. They tend to be older and less well educated.

Primary demand

Demand for the general product idea-- not just for the company's own brand

Selective demand

Demand for a company's own brand rather than a whole product category

Task method

basing the budget on the job to be done

Advertising agencies

specialists in planning and handling mass-selling details for advertisers.

Advertising allowances

Price reductions to firms further along in the channel-- to encourage them to advertise or otherwise promote the firm's products locally

Cooperative advertising

involves producers sharing in the cost of ads with wholesalers or retailers.

Product advertising

Advertising that tries to sell a specific product

Institutional advertising

Advertising that promotes an organization's image, reputation, or ideas rather than a specific product

Pioneering advertising

advertising that tries to develop primary demand for a product category rather than demand for a specific brand.

Competitive advertising

advertising that tries to develop selective demand for a specific brand

Direct competitive advertising

Competitive advertising that aims for immediate buying action

Indirect competitive advertising

Advertising that points out product advantages to affect future buying decisions

Comparative advertising

Advertising that makes specific brand comparisons--using actual product names

Reminder advertising

advertising that tries to keep the product's name before the public.

Pay-per-click

Where advertisers pay media costs only when a customer clicks on the ad that links to the advertisers website.

Retargeting

displays ads to a web user based on sites he or she previously visited.

Click-through rate

the number of people who click on the ad divided by the number of people the ad is presented to (usually less than 1/1000

Influencers

trusted or well-known figures who can sway attitudes or purchase decisions among a particular target market- to promote a brand

Copy thrust

what the words and illustrations in an advertisement should communicate

Corrective advertising

ads to correct deceptive advertising

Trade promotion

refers to sales promotion aimed at intermediaries

Paid Media

messages generated by a brand and communicated through a message channel the brand pays to access

Owned media

Promotional messages generated by a brand communicated through a message channel the brand directly controls

website, youtube, instagram.. etc

Earned media

promotional messages not directly generated by the company or brand, but rather by third parties such as journalists or customers.

User-generated content

any type of communication created by customers for other customers

Search engine optimization (SEO)

The process of designing a website so that it ranks high in a search engines unpaid results

Pass-along

occurs when one customer passes information on to one or more other customers

Branded services

valued services a brand provides that are not directly connected to a core product offering. They are designed to share a message

White paper

an authoritative report or guide that addresses important issues in an industry and offers solutionsC

Case studies

success stories about how a company helped another customer

Landing page

a customized web page that logically follows from clicking on an organic search result, online ad, or other link

Blog

a regularly updated website, usually managed by one person or a small group and written in an informal, conversational style

Infographic

a visual image such as a chart or diagram used to represent information or data

Branded apps

sponsored software applications that benefit customers by providing entertainment, solving a problem, and/or saving tine.

Brand community

a group of customers joined around a particular brand or common set of shared interests.

referral program

offers a current customer an incentive for recommending a new customer to a business

Social media

websites or software applications that allow users to create and share ideas, information, photos, and videos and interact in a social network

Marketing automation software

tracks individual customers' behavior and triggers actions in response to specific customer actions.

Price

the amount of money that is charged for "something" of value

Target return objective

sets a specific level of profit as an objective.

Profit maximization objective

seeks to get as much profit as possible

Sales oriented objective

seeks some level of unit sales, dollar sales, or share of market (without referring to profit)

Status quo-objectives

don't-rock-the-pricing-boat objectives. Stabilize prices, meet competition, or avoid competition

nonprice competition

aggressive action on one or more of the P's other than price

Administered prices

consciously set prices aimed at reaching the firm's objectives

One-price policy

offering the same price to all customers who purchase products under essentially the same conditions and in the same quantities

Flexible-price policy

means offering the same product and quantities to different customers at different prices

Dynamic pricing

pricing products at a particular customer's perceived ability to pay

Skimming price policy

tries to sell the top (skim the cream) of a market--the top of the demand curve-- at a high price before aiming at more price sensitive customers

Penetration pricing policy

tries to sell the whole market at one low price

Introductory price dealing

temporary price cuts-- to speed new products into market and get customers to try them. Raise prices as soon as the introductory offer is over

Allowances

reductions in price given to final consumers, customers, or channel members for doing something or accepting less of somethingA

Advertising allowances

price reductions given to firms in the channel to encourage them to advertise or otherwise promote the supplier's products locally.S

Stocking allowances / slotting allowances

Given to an intermediary to get shelf space for a product.

Push money (prize money) allowances

given to retailers by manufacturers or wholesalers to pass on to the retailers salesclerks for aggressively selling certain items

Trade-in allowance

Price reduction given for used products when similar new products are bought

Sale price

a temporary discount from the list price

Everyday low pricing

setting a low list price rather than relying on frequent sales, discounts, or allowances

Rebates

refunds paid to consumers after a purchase

Lease

gives a customer the right to use something for a specified period of time in exchange for regular payments

Unfair trade practice acts

put a lower limit on prices, especially at the wholesale and retail levels.

Dumping

pricing a product sold in a foreign market below the cost of producing it or at a price lower than in its domestic market.

Phony list prices

prices customers are shown to suggest that the price has been discounted from the list.

Wheeler-Lea act

bans "unfair or deceptive acts in commerce"pr

price-fixing

competitors getting together to raise, lower, or stabilize prices

Price discrimination

selling the same products to different buyers at different prices --if it injures competition

Discounts

reductions from list price given by a seller to buyers who either give up some marketing information or provide the function themselves

Quantity discounts

discounts offered to encourage customers to buy in larger amounts.

Cumulative quantity discounts

apply to purchases over a given period, the discount usually increases as the amount purchased increases

Noncumulative quantity discounts

apply to individual orders.

Seasonal discounts

Discounts offered to encourage buyers to buy earlier than present demand requires

Net

payment for the face value of the invoice is due immediately

Cash discounts

reductions in price to encourage buyers to pay their bills quickly