MAR 3023 Exam 4 FSU

The coordination of promotion and marketing efforts used for maximum impact?

Integrated Marketing Communications (IMC)

4 Goals of Integrated Marketing Communications?

1. Consistent

2. Coordinated

3. Complementary

4. Continuity

Promoting a product only to the NEXT INSTITUTION down the marketing channel?

Push Policy

Promoting a product DIRECTLY TO CONSUMERS to develop strong demand?

Pull Policy

The process that describes the exchange of information between two or more people?

Communication Process

How a communication travels from the source to the receiver?

Channel

no personal contact with consumer?

Non-Personal Channel

Involves Direct Contact?

Personal Channels

The person/ organization that has information to share?

Source

The consumers level of familiarity with a name (how popular/likeable someone is)?

Q Score

The process of transforming the message back into thought?

Decoding

The process of putting words, thoughts, messages into symbolic form in such a way that they will be understood by the receiver/consumer?

Encoding

Anything that interferes with or distorts the message?

Noise

A subset of "viral marketing" where in companies hire socially active consumers to PROMOTE PRODUCTS TO THEIR FRIENDS, relatives and acquaintances?

Buzz Marketing

The thinking stage. Where the receiver becomes aware of the message?

Cognitive Stage

the feeling stage. Where the receiver forms a liking or preference for the ad object?

Affective Stage

the doing stage. Where the receiver acts on the preference?

Behavioral Stage

developed for personal selling - represents the stages a salesperson must take a customer through to induce purchase (attention - interest - desire - action)?

AIDA Model

A paid form of non-personal communication that is transmitted to a target audience through mass media?

Advertising

A type of product promotion that attempts to influence a consumer in favor of a purchasing particular good or service?

Advertising Pervasiveness

conveys a firm's position on a public issue?

Advocacy Advertising

promotes the uses, features and benefits of specific products?

Product Advertising

focuses on stimulating demand for a product category (instead of a specific brand) Got Milk.

Pioneer Advertising

compares two or more brands on one or more characteristics?

Comparative Advertising

reminds customers of an established brand's characteristics and benefits?

Reminder Advertising

assures customers they made the right decision

Reinforcement Advertising

aggressive promotional techniques used to penetrate clutter and noise?

Guerilla Marketing

the use of a brand/product integrated with a concept such as a prank or a video on Youtube to the consumer?

Branded Entertainment

runs steadily throughout the year?

Continuous

Runs in spurts (seasonal products)?

Flighting

Combination of running all year and in spurts (school products and super bowl)?

Pulsing

the percentage of consumers in the target audience exposed to a particular advertisement in a stated period?

Reach

the number of times these targeted consumers are exposed to the advertisement?

Frequency

evaluation performed before a campaign begins?

Pretest

evaluation of advertising effectiveness after the campaign?

Posttest

An audience measurement system designed to assess the size and composition of TV audiences?

Nielsen Ratings

Rating = [ HH turned to show/Total U.S. HH]

Share = [HH turned to show/ U.S. HH using TV]

TV Advertising Measure

Almost _____ of U.S. households subscribe to or purchase magazines?

80%

The average household purchases __ magazines per year?

6

Communication efforts used to create and maintain favorable relations between an organization and its stakeholders?

Public Relations

Communication about the organization and/or its products transmitted through mass media at no charge?

Publicity

PR vs Publicity?

1. Publicity is more short term whereas PR extends

over a period of time.

2. Publicity is largely out of the control of the firm.

3. PR is designed to be positive whereas publicity

may not be positive.

4. Publicity is considered to be more powerful

than PR.

Paid personal communication that informs customers and persuades them to buy products in an exchange situation?

Personal Selling

Advantages of Personal Selling?

1. Customer freedom to adjust message

2. Most precise promotional method

Disadvantages of Personal Selling

Most expensive element in the promotion mix

These people sell to new customers and increase sales to current customers?

Order Getters

These people Primarily seek to repeat sales?

Order Takers

Using a team of experts from all functional areas of a firm, led by a salesperson, to conduct the personal selling process?

Team Selling

Building mutually beneficial long-term associations with a customer through regular communications over prolonged periods of time?

Relationship Selling

involves using trade promotions to persuade retailers or wholesalers to carry a brand, or push it to consumers?

Push Strategy

focuses on promotions on consumers to stimulate demand?

Pull strategy

A temporary price reduction offered to resellers for purchasing set quantities of a product?

Buying Allowance

A sum of money a producer gives to a reseller for each unit the reseller hasn't sold after a promotional deal expires?

Buy-Back Allowance

A manufacturer's reward to retailers based on the number of items they sell?

Scan-Back Allowance

A manufacturer's agreement to pay resellers certain amounts of money for providing special promo efforts?

Merchandise Allowance

emphasizing price as an issue and matching or beating competitor's prices?

Price Competition

emphasizing factors other than price to distinguish a product from competing brands?

Non-Price Competition

_____ = (price x quantity sold) - Total costs?

Profit

the difference between the cost of a good and its selling price?

Markup

Grocery Stores Markup an average of ___%?

12%

a measure of the sensitivity of demand to the changes in price?

Price of Elasticity of Demand

change in price causes an opposite change in quantity demand?

Elastic Demand

5 Elasticity Determinants?

1. Availability of Substitutes

2. Percentage of income

3. Necessity

4. Time

5. Brand Loyalty

where the costs of producing a product equal the revenue made from selling the product?

Break-even Point

Break even point formula?

Total Fixed Costs / (Price Per Unit - Variable cost Per Unit)

Costs that do not vary with change in number of units sold or produced?

Fixed Costs

fixed cost per unit produced ?

Average Fixed Cost

Costs that vary directly with changes in the number of units produced or sold?

Variable Costs

Average Total Cost Formula?

Average total cost = AVG VC + AVG FC

sum of average fixed costs and average variable costs times the quantity produced.

Total Costs

The price stored in memory that helps to evaluate the actual price?

Reference Price

anchoring price for consumers ?

Price Framing

offering several products for sale in on "package" ?

Price Bundling

charging separately for previously bundled products/service?

Unbundling

set prices low to maximize sales?

Sales Oriented

pricing strategy focused on profits?

Profit Oriented

focused on providing value ?

Customer Oriented

set a relatively high price at first and then lower it over time. Useful with inelastic demand, early lifecycle stage?

Skimming

Set a relatively low price to drive market share/value perceptions. Useful with elastic demand, long- term focus?

Penetration

Market-drive, "status quo" strategies?

Neutral

Selling products at or below cost ?

Price/Loss Leader

the basic product is sold low; ancillaries are high?

Captive Pricing

pricing products at several levels; prices are relatively inelastic within the different ranges?

Price Lining

a product is promised at a low price but is either not in stock or a less attractive product is sold?

Bait Pricing

ending prices in odd or non-round numbers (.95)?

Odd-Even Pricing

displaying a moderately priced product next to an expensive one?

Reference Pricing

setting low prices on a consistent basis?

EDLP

when a product is shown for its "high class" or expensive taste then the product is notable more wanted by consumers?

Prestige Pricing

the strategic process of distributing, promoting, pricing products and discovering the desires of customer using digital media and digital marketing?

E-Marketing

E-Marketing Characteristics

1. Addressability

2. Interactivity

3. Accessibility

4. Connectivity

5. Control

Helps marketers focus on high quality relationship by being more personal and segmented?

Interactivity

What is the key to modern marketing?

Simplicity