Marketing, Pricing, and Digital Communications

Comprehensive vocabulary flashcards reviewing social media strategy, pricing concepts, the promotional mix, personal selling stages, advertising metrics, and SEO/PPC fundamentals.

Benefits of Social Media Marketing

Key organizational advantages including developing a local community, improving customer service, expanding sales & new audience, gaining feedback/ideas, boosting traffic & search engine rating, improving brand image, showing expertise or product quality, cutting market costs, and maintaining top-of-mind awareness.

Steps for Choosing a Social Media Platform

A five-step framework: 1. look at different platform uses, 2. look at where customers are, 3. know the behavior of target market, 4. look at where competitors are, and 5. try out a platform or two and adjust.

General Social Media Marketing Tips

Best practices emphasizing: represent your brand identity, interact, don't post ghost, don't blast, and create & share value.

Social Media Monitoring

The process of listening out for social media conversations that are relevant to your brand.

Price

What a customer gives up to obtain a product or service, usually money.

Value

The customer's assessment of benefits received compared with costs or sacrifices.

Fixed Costs

Total costs that remain unchanged as volume changes within a relevant range or time period (such as monthly rent, salaries).

Variable Costs

Total costs that increase or decrease with volume (such as materials, packaging).

Dumb Industry

An industry competing mainly on price, where customers see few differences so competition is price based.

Smart Industry

An industry competing through differentiated value, where businesses give customers reasons to pay more or choose differently.

Price Elasticity

Measures how responsive quantity demanded is to change in price ($\text{\% change in QD} \div \text{\% change in price}$).

Elastic Demand

A price elasticity value greater than $1$, indicating quantity demanded responds proportionally more than price (more elastic when more substitutes exist).

Inelastic Demand

A price elasticity value less than $1$, indicating quantity demanded responds proportionally less than price.

Cost-Based Pricing

Pricing determined by looking at what it costs to make, which may overlook customer willingness to pay.

Market-Based Pricing

Pricing set by what competitors are charging, which may overlook value or differentiation.

Value-Based Pricing

Pricing based on what benefits customers believe they get, requiring an understanding of customer perceptions.

Direct-Cost Pricing

A pricing method that uses variable costs as the pricing basis.

Full-Cost Pricing

A pricing method that includes variable costs and an allocated share of fixed costs.

Markup

A pricing calculation based on costs.

Margin

A pricing calculation based on selling price.

Price Floor

The minimum price needed to break even, which must cover both fixed & variable costs.

Flat-Rate Pricing

One fee for a defined service during a period (such as a monthly gym membership).

À La Carte Pricing

Additional fees or payment for individual features or services (such as a hotel charging for breakfast or parking).

Price Skimming

Introducing a new product at a high price, then lowering it over time.

Penetration Pricing

Introducing a new product at a low price to attract customers.

Odd-Even Pricing

A psychological pricing method illustrated by setting prices like $19.99$ vs. $20.00$.

Reference Pricing

Comparing a price with another price to influence perceived value.

The Three C's of Pricing

A pricing framework consisting of Company (costs, profit goals, capabilities, and positioning), Customers (needs, perceived value, and willingness to pay), and Competitors (alternative offerings and pricing).

Advertising

Paid communication promoting a product or organization.

Sales Promotion

Marketing incentives to encourage purchase or participation (examples include coupons, free samples, user programs).

Public Relations

Managing reputation & relationships with the public (examples include sponsorships, community service, media releases).

Personal Selling

The use of direct interaction to understand needs and persuade a buyer.

Direct Marketing

Contacting selected customers and seeking a measurable response.

Stages of Personal Selling

A six-stage process: 1. prospecting (identify potential customers), 2. pre-approach (research the prospect & prepare), 3. approach (make contact & establish rapport), 4. presentation (explain how offer meets needs), 5. close (ask for purchase/commitment), and 6. follow-up (check satisfaction & maintain relationship).

Advertising Objectives

The three goals of advertising: inform (explain product), persuade (encourage purchase), and remind/reinforce (maintain awareness).

Advertising Media

Communication channels categorized as broadcast (TV, radio), print (magazine, newspaper), outdoor (billboards, signage), and digital (search ads, social ads, videos).

Reach

The number of people exposed to an ad.

Impression

The total number of exposures, including repeats (or one instance of an ad being displayed).

Frequency

The average number of exposures per person reached.

Waste Coverage

Advertising exposure among people outside the intended target market.

CPM

Cost per thousand impressions.

The SUCCESS Model

A communication framework consisting of Simple, unexpected, concrete, credible, emotional, and stories.

Integrated Marketing Communications (IMC)

Coordinating communication channels so customers receive a consistent brand message.

AIDA

A marketing acronym representing attention, interest, desire, and action.

SEO (Search Engine Optimization)

Improving a website's ability to appear in unpaid search results.

PPC (Pay-Per-Click) Advertising

A payment model where advertisers pay when someone clicks an ad.

How Search Engines Work

A three-step technical process: 1. Crawl (discover & retrieve webpages), 2. Index (analyze & store info about pages), and 3. Rank & return results (select relevant results for a search).

On-Page SEO

Search engine optimization focusing on helpful content, descriptive titles, headings, and relevant wording.

Technical SEO

Search engine optimization focusing on making pages accessible and understandable to search engines.

Off-Page SEO

Search engine optimization focusing on building recognition and earning relevant links from other websites.

Natural Backlink

A hyperlink received when someone links to content because they find it useful.

Manufactured / Built Backlink

A link that results from intentional outreach or link-building work.

Self-Created Backlink

A link placed on a webpage or platform directly by the marketer themselves.

Click

An interaction where a user clicks an ad.

Conversion

The completion of a desired action (such as a purchase) by a user.

Landing Page

The webpage a user is directed to after clicking an ad.

Call to Action

A prompt telling users what to do.

Display Ad

A visual advertisement placed on a site or app.

Remarketing

Ads directed specifically at people who previously interacted with them.

Quality Score

A $1\text{ to }10$ diagnostic measure in digital advertising based on relevance, landing page experience, and expected click-thru rate.