Marketing final

**Promotion**

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

**Personal selling**

direct spoken communication between sellers and potential customers ex: customer service

**Mass selling**

communicating with large numbers of potential customers at the same time/ less expensive when there's a large/ scattered target market

**Advertising**

any *paid* form of non personal presentation of ideas, goods, or services by an identified sponsor

**Sales promotion**

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

**Publicity**

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

3 basic promotion objectives

informing, persuading, and reminding

**AIDA**

1) get Attention 2) hold Interest 3) arouse Desire 4) obtain Action

**Noise**

any distraction that reduces the effectiveness of the communication process

**Encoding**

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

**Decoding**

receiver translating the message

**Pushing**

using normal promotion effort to help sell the whole marketing mix to possible channel members

**Pulling**

getting customers to ask intermediaries for the product: targeted at end customers

Adoption curve

shows when different groups accept ideas

**Innovators**

first to adopt/ take risks/rely on sources or other innovators instead of sales people

**Early adopters**

 well respected by their peers/ opinion leaders/ younger, more creative

**Early majority**

avoids risk and waits to consider a new idea after many early adopters have tried and liked it

**Late majority**

cautious about new ideas/ older/ more set in their ways

**Laggards / Non adopters**

prefer to do things the way they've been done in past/ suspicious of new ideas

**Primary demand**

demand for the general product idea-not just for company’s own brand

**Selective demand**

demand for a company's own brand

**Task method**

basing the budget on the job to be done

Basic sales tasks

order getting, order taking, supporting

**Order getters**

establish relationships with new customers and develop new business

**Order getting**

seeking possible buyers with a well organized sales presentation

**Order takers**

sell to regular or established customers, complete most sales transactions and maintain relationships with their customers

**Order taking**

routine completion of sales made regularly to target customers

**Supporting salespeople**

help the order oriented salespeople but they don't try to get orders themselves

**Missionary salespeople**

supporting salespeople who work for producers-calling on intermediaries and their customers

**Technical specialists**

supporting salespeople who provide technical assistance to order-oriented salespeople

**Customer service reps**

work with customers to resolve problems that arise with a purchase, usually after the purchase has been made

**Sales territory**

geographic area that is the responsibility of one sales person or several working together

**Prospecting**

following all the leads in the target market to identify potential customers

**Consultative selling approach**

developing a good understanding of the individual customers needs before trying to close the sale

**Selling formula approach**

starts with a prepared presentation outline and leads the customers through some logical steps to a final close

**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

**Institutional advertising**

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

**Pioneering advertising**

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

**Direct competitive advertising**

aims for immediate buying action

**Indirect competitive advertising**

 points out product advantages it affect future buying decisions

**Comparative advertising**

making specific brand comparisons-using actual product names

**Pay per click**

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 previously visited

**Click through rate**

number of people who click on the ad divided by the number of people the ad is presented to -can be low (

**Copy thrust**

what the words and illustrations should communicate

**Trade promotion**

refers to sales promotion aimed at intermediaries 

**Paid media**

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

**Owned media**

promotional messages generated by a brand communicated through message channel brand directly controls

**Earned media**

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

**Search engine optimization (SEO)**

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

**Branded services**

valued services a brand provides that are not directly connected to a core product offering

**White paper**

authoritative report of guide that addresses important issues in an industry and offers solutions

**Landing page**

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

**Opinion leaders**

like to share their views and get attention from other customers who respect their views

**Target return objective**

sets specific level of profit as objective (%)

**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**

offering the same product and quantity to different customers at different prices

**Dynamic pricing**

pricing products at a particular customers perceived ability to pay

**Skimming price policy**

tries to sell the top 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 whole market at one low price

**Introductory price dealing**

temporary price cuts to speed new products into a market and get customers to try them

**Basic list prices**

prices final customers or users are normally asked to pay for products

**Quantity discounts**

discounts offered to encourage customers to buy in larger amounts

**Cumulative quantity discounts**

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

**Non cumulative quantity discounts**

apply only to individual orders

**Net**

payment for face value of invoice is due immediately

**2/10, net 30**

means buyer can take 2% discount off face value of invoice if it is paid within 10 days, otherwise due in 30 days.

**Trade (functional) discount**

 list price reduction given to channel members for the job they are going to do

**Allowances**

like discounts, are given to final customers for doing something or or accepting less of nothing

**Advertising allowances**

are price reductions given to firms in the channel to encourage them to advertise or otherwise promote the suppliers products locally

**Stocking allowances**

aka slotting allowances: given to an intermediary to get shelf space for a product 

**Push money**

 aka 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 usd products when similar new products are bought

**Rebates**

refunds paid to consumers after a purchase

**Value pricing**

setting a fair price level for a marketing mix that really gives the target market superior customer value

**Markup chain**

the sequence of markups firms use at different levels in a channel

**Stockturn rate**

high or low often depends on the industry and the product involved

**Total variable cost**

 sum of those changing expenses that are closely related to output-expenses for parts, wages, packaging materials, outgoing freight and sales commissions

**Total cost**

sum of total fixed and total variable costs

**Average cost (per unit**)

obtained by dividing total cost by the related quantity 

**Average fixed cost (per unit**)

obtained by dividing total fixed cost by the related quantity

**Average variable cost (per unit**)

obtained by dividing total variable cost by the related quantity

**Break even analysis**

evaluates whether the firm will be able to break even with a particular price

**Break even point (BEP**)

quantity where the firm’s total cost will just equal its total revenue

**Fixed cost (FC) contribution per unit**

assumed selling price per unit minus the variable cost per unit

**Marginal analysis**

focuses on changes in total revenue and total cost from selling one more unit to find the most profitable price and quantity

**Price sensitivity**

refers to degree to which customers purchase decisions are affected by the price

**Value in use pricing**:

setting prices that will capture some of what customers will save by substituting the firm’s product for the one currently being used

**Reference price**

price they expect to pay for many of the products they purchase

**Leader pricing**

setting some very low prices to get customers into retail stores

**Freemium (free and premium**)

providing a product for no charge while money is charged for additional features that enhance the products use

**Bait pricing**

setting some very low prices to attract customers but trying to sell more expensive models or brands once the customer is in the store

**Psychological pricing**

setting prices that have special appeal to target customers

**Odd even pricing**

setting prices that end in certain numbers

**Subscription pricing**

customers pay on a periodic basis for access to a product

**Price lining**

setting a few price levels for a product line and then marking all items at these prices

**Demand backward pricing**

setting an acceptable final consumer price and working backward to what a producer can charge

**Prestige pricing**

setting a rather higher price to suggest high quality or high status