Principles of Marketing — Exam 3 Comprehensive Vocabulary

Vocabulary study set containing foundational terms, frameworks, and formulas across IMC, Interactive & Social Media, Advertising Campaigns, and Personal Selling for MARK 311 Exam 3.

Promotional Mix

The combination of one or more communication tools used 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.

Integrated Marketing Communications (IMC)

The concept of designing marketing communications programs that coordinate all promotional activities—advertising, personal selling, sales promotion, public relations, and direct marketing—to provide a consistent message across all audiences.

Communication

The process of conveying a message to others that requires six elements: a source, a message, a channel of communication, a receiver, and the processes of encoding and decoding.

Channel of Communication

The means (e.g., a salesperson, advertising media, or public relations tools) of conveying a message to a receiver during the communication process.

Advertising

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

Personal Selling

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

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

A promotion 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.

Push Strategy

A promotional strategy that involves directing the promotional mix to channel members to gain their cooperation in ordering and stocking the product.

Pull Strategy

A promotional strategy that involves directing the promotional mix at ultimate consumers to encourage them to ask the retailer for a product.

Promotion Decision Process

The systematic process of executing an organization's promotional effort, divided into three stages: planning (developing the promotion program), implementation (executing the promotion program), and evaluation (assessing the promotion program).

Online Behavioral Targeting

The practice of collecting and utilizing information about consumers' behavior online to personalize banners and display ads.

Lead Generation

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

Social Media

Online media where users submit comments, photos, and videos—often accompanied by a feedback process to identify "popular" topics.

User-Generated Content (UGC)

The various forms of online media content that are publicly available and created by end users; also known as consumer-generated content.

Influencer Marketing

The practice of focusing on the identification and recruitment of influencers to advocate a company's products, services, and brands rather than focusing exclusively on prospective buyers.

Social Shopping

The use of social network services and websites by consumers to share their latest purchases, deals, coupons, product reviews, want lists, and other shopping finds with friends and contacts.

Interactive Marketing

Two-way buyer–seller electronic communication in which the buyer controls the kind and amount of information received from the seller.

Seven Website Design Elements

The seven structural elements that drive consumer experience on a website: Context (layout and visual design), Content (text, pictures, sound, and video), Community (user-to-user communication), Customization (ability to tailor to different users), Communication (site-to-user, user-to-site, or two-way), Connection (degree linked to other sites), and Commerce (capabilities to enable commercial transactions).

Personalization

The consumer-initiated practice of generating content on a marketer's website that is custom tailored to an individual's specific needs and preferences.

Online Consumers

The subsegment of all Internet users who employ this technology to research products and services and make purchases.

Eight-Second Rule

A customer experience benchmark indicating that customers will abandon their efforts to enter or navigate a website if download time exceeds $8\,\text{seconds}$.

Social Commerce

The use of social networks for browsing and buying.

Cross-Channel Consumer

A consumer who shops online but buys offline, or shops offline but buys online, engaging in behaviors such as webrooming or showrooming.

Showrooming

The practice of examining merchandise in a physical retail store without buying it, and then shopping online to find a lower price.

Webrooming

The practice of examining products online and then buying them in a physical store.

Multichannel Marketing

The blending of different communication and delivery channels that are mutually reinforcing in attracting, retaining, and building relationships with consumers who shop and buy in traditional intermediaries and online.

Marketing Attribution

The practice and techniques used to credit or value a particular channel and consumer touchpoint.

Product Advertisements

Advertisements that focus on selling a good or service, taking three distinct forms: pioneering (informational), competitive (persuasive), and reminder.

Pioneering Advertisements

A form of product advertisement used in the introductory stage of the product life cycle to tell people what a product is, what it can do, and where it can be found.

Competitive Advertisements

A form of product advertisement that promotes a specific brand's features and benefits to persuade consumers to select that brand over competitors.

Reminder Advertisements

A form of product advertisement used to reinforce previous knowledge of a product or service, often used for mature brands.

Institutional Advertisements

Advertisements designed to build goodwill or an image for an organization rather than promote a specific product or service.

Reach

The number of different people or households exposed to an advertisement.

Rating

The percentage of households in a market that are tuned to a particular TV show or radio station.

Frequency

The average number of times a person in the target audience is exposed to a message or advertisement.

Gross Rating Points (GRP)

A reference number calculated by multiplying reach by frequency: $\text{Gross Rating Points (GRP)} = \text{Reach} \times \text{Frequency}$.

Cost Per Thousand (CPM)

The cost of reaching $1{,}000$ individuals or households with the advertising message in a given medium.

Pretests

Tests conducted before an advertisement is placed in any medium to determine whether it communicates the intended message or to select among alternative versions of the advertisement.

Posttests

Tests conducted after an advertisement has been shown to the target audience to determine whether it accomplished its intended purpose.

Full-Service Agency

An advertising agency that provides a complete range of services, including marketing research, media selection, copy development, artwork production, and coordinating integrated campaigns.

Limited-Service Agency

An advertising agency that specializes in one aspect of the creative process, such as creative production work or purchasing unpurchased media space.

In-House Agency

A company's own internal advertising staff that provides a range of services depending on company needs.

Consumer-Oriented Sales Promotions

Sales tools used to support a company's advertising and personal selling directed to ultimate consumers; also called consumer promotions.

Publicity Tools

Methods of obtaining nonpersonal presentations of an organization, product, or service without direct cost, including news releases, news conferences, and public service announcements (PSAs).

Sales Management

Planning the selling program and implementing and evaluating the personal selling effort of the firm.

Customer Orientation

A selling mindset and approach guided by trying to align customers with products and services that will solve their specific problems.

Sales Orientation

A selling orientation where the salesperson's motivation is to satisfy their own short-term interests rather than the customer's.

Relationship Selling

The practice of building ties to customers based on a salesperson's attention and commitment to customer needs over time.

Personal Selling Process

Sales activities occurring before, during, and after the sale itself, consisting of six stages: (1) prospecting, (2) preapproach, (3) approach, (4) presentation, (5) close, and (6) follow-up.

Prospecting

The search for and qualification of potential customers, serving as the start of the personal selling process.

Preapproach

The stage in the personal selling process where salespeople gather information and decide how to approach the prospect.

Approach

The stage in the personal selling process where the salesperson gains a prospect's attention, stimulates interest, and makes the transition to the presentation.

Consultative Selling

A need-satisfaction presentation format that focuses on problem identification, where the salesperson serves as an expert on problem recognition and resolution.

Close Stage

The stage in the personal selling process of obtaining a purchase commitment from the prospect using techniques such as the trial close, assumptive close, or urgency close.

Follow-Up Stage

The final stage of the personal selling process designed to ensure that the customer is satisfied with the product or service and to resolve any post-purchase problems.

Sales Plan

A statement describing what is to be achieved and where and how the selling effort of salespeople is to be deployed.

Key Account Management

The practice of using team selling to focus on important customers so as to build mutually beneficial, long-term, cooperative relationships.

Account Management Policy Grid

A matrix used to segment accounts by level of account opportunity (high/low) and the sales organization's competitive position (high/low) to determine appropriate call frequencies and resource allocation policies.

Emotional Intelligence

The ability to understand one's own emotions and the emotions of people with whom one interacts, comprising five core dimensions: self-motivation skills, self-awareness, managing one's emotions (self-regulation), empathy, and social skills.

Sales Enablement

The process of providing the sales organization with the information, content, and tools that help salespeople sell more effectively.

Salesforce Automation (SFA)

The use of computer, information, communication, and Internet technologies to make the sales function more effective and efficient.