MK 201 Chapter 15 Vocab

Channel of communication:

Medium used to transmit the message from the sender to the receiver—professional selling, advertising, public relations, sales promotions, or direct marketing.

Field of experience:

Frame of reference including attitudes, values, and beliefs that influence the way a source encodes a message or the way a receiver decodes a message. 

Noise

Extraneous factors that can work against effective communication by distorting a message or the feedback received during the communication process.

Promotional mix:

The combination of communication tools to (1) inform prospective buyers about the benefits of the product, (2) persuade them to try it, and (3) remind them later about the benefits they enjoyed by using the product.

Elements of the promotional mix include:

(1) advertising, (2) personal selling, (3) sales promotion, (4) public relations, and (5) direct marketing.

Integrated marketing communications (IMC):

The concept of designing marketing communications programs that coordinate all promotional activities to provide a consistent message across all audiences.

Advertising

Any paid form of nonpersonal communication by an identified sponsor about an organization or product.

Personal selling:

The two-way flow of communication between a buyer and seller, often in a face-to-face encounter, designed to influence the purchase decision of a person or group.

Public relations:

A form of communication management that seeks to influence the feelings, opinions, or beliefs held by customers, prospective customers, stockholders, suppliers, employees, and other publics about a company and its products or services.

Publicity

A nonpersonal, indirectly paid presentation of an organization, product, or service.

Sales promotion:

A short-term inducement of value offered to arouse interest in buying a product or service.

Direct marketing:

Direct marketing:

Push strategy

 Directing the promotional mix to channel members to gain their cooperation in ordering and stocking the product.

Pull strategy:

Directing the promotional mix at ultimate consumers to encourage them to ask the retailer for a product.

Target audience:

The group of prospective buyers toward which a promotion program will be directed.

Hierarchy of effects:

The sequence of stages a prospective buyer goes through from initial awareness of a product to eventual action including awareness, interest, evaluation, trial, and adoption of the product.

Advocacy  (Consumer):

Loyal consumers recommending brands to others.

Percentage of sales budgeting:

Spending is set as a percentage of past or anticipated sales.

Competitive parity budgeting:

Spending is set to match competitors absolute spending or spending relative to market share.

All-you-can-afford budgeting:

Spending on promotion occurs only after all other expenses are covered.

Objective and task budgeting:

Budget is determined by setting promotion objectives, outlining the tasks needed to accomplish those objectives, and then determining the cost of performing those tasks.

Traffic generation:

The outcome of a direct marketing offer designed to motivate people to visit a business.

Lead generation:

The result of a direct marketing offer designed to generate interest in a product and request additional information.

Direct orders:

The result of direct marketing offers that contain all the information necessary for a prospective buyer to decide about a purchase and complete the transaction.

Direct marketing:

A promotional alternative that uses direct communication with consumers to generate a response in the form of an order, a request for further information, or a visit to a retail outlet.