communicating information between the seller and potential buyer or others in the channel to influence attitudes and behavior
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**Personal selling**
direct spoken communication between sellers and potential customers ex: customer service
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**Mass selling**
communicating with large numbers of potential customers at the same time/ less expensive when there's a large/ scattered target market
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**Advertising**
any *paid* form of non personal presentation of ideas, goods, or services by an identified sponsor
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**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
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**Publicity**
*unpaid* form of nonpersonal presentation of ideas, goods or services
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3 basic promotion objectives
informing, persuading, and reminding
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**AIDA**
1) get Attention 2) hold Interest 3) arouse Desire 4) obtain Action
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**Noise**
any distraction that reduces the effectiveness of the communication process
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**Encoding**
source deciding what it wants to say and translating it into words or symbols that will have the same meaning to the receiver
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**Decoding**
receiver translating the message
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**Pushing**
using normal promotion effort to help sell the whole marketing mix to possible channel members
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**Pulling**
getting customers to ask intermediaries for the product: targeted at end customers
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Adoption curve
shows when different groups accept ideas
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**Innovators**
first to adopt/ take risks/rely on sources or other innovators instead of sales people
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**Early adopters**
 well respected by their peers/ opinion leaders/ younger, more creative
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**Early majority**
avoids risk and waits to consider a new idea after many early adopters have tried and liked it
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**Late majority**
cautious about new ideas/ older/ more set in their ways
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**Laggards / Non adopters**
prefer to do things the way they've been done in past/ suspicious of new ideas
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**Primary demand**
demand for the general product idea-not just for company’s own brand
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**Selective demand**
demand for a company's own brand
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**Task method**
basing the budget on the job to be done
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Basic sales tasks
order getting, order taking, supporting
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**Order getters**
establish relationships with new customers and develop new business
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**Order getting**
seeking possible buyers with a well organized sales presentation
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**Order takers**
sell to regular or established customers, complete most sales transactions and maintain relationships with their customers
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**Order taking**
routine completion of sales made regularly to target customers
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**Supporting salespeople**
help the order oriented salespeople but they don't try to get orders themselves
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**Missionary salespeople**
supporting salespeople who work for producers-calling on intermediaries and their customers
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**Technical specialists**
supporting salespeople who provide technical assistance to order-oriented salespeople
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**Customer service reps**
work with customers to resolve problems that arise with a purchase, usually after the purchase has been made
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**Sales territory**
geographic area that is the responsibility of one sales person or several working together
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**Prospecting**
following all the leads in the target market to identify potential customers
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**Consultative selling approach**
developing a good understanding of the individual customers needs before trying to close the sale
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**Selling formula approach**
starts with a prepared presentation outline and leads the customers through some logical steps to a final close
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**Advertising allowances**
price reductions to firms further along in the channel-to encourage them to advertise or otherwise promote the firm's products locally
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**Cooperative advertising**
involves producers sharing in the cost of ads with wholesalers or retailers
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**Institutional advertising**
promotes an organization's image, reputation or ideas rather than a specific product
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**Pioneering advertising**
tries to develop primary demand for a product category rather than demand for a specific brand
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**Direct competitive advertising**
aims for immediate buying action
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**Indirect competitive advertising**
 points out product advantages it affect future buying decisions
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**Comparative advertising**
making specific brand comparisons-using actual product names
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**Pay per click**
advertisers pay media costs only when a customer clicks on the ad that links to the advertisers website
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**Retargeting**
displays ads to a web user based on sites previously visited
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**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 (
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**Copy thrust**
what the words and illustrations should communicate
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**Trade promotion**
refers to sales promotion aimed at intermediariesÂ
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**Paid media**
 messages generated by a brand communicated through message channel brand pays access to
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**Owned media**
promotional messages generated by a brand communicated through message channel brand directly controls
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**Earned media**
promotional messages not directly generated by the company or brand but by third parties such as journalists or customers
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**Search engine optimization (SEO)**
process of designing a website so that it ranks high in a search engines unpaid results
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**Branded services**
valued services a brand provides that are not directly connected to a core product offering
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**White paper**
authoritative report of guide that addresses important issues in an industry and offers solutions
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**Landing page**
customized web page that logically follows from clicking on an organic search result, online advertisement or other link
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**Opinion leaders**
like to share their views and get attention from other customers who respect their views
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**Target return objective**
sets specific level of profit as objective (%)
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**One price policy**
offering the same price to all customers who purchase products under essentially the same conditions and in the same quantities
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**Flexible price policy**
offering the same product and quantity to different customers at different prices
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**Dynamic pricing**
pricing products at a particular customers perceived ability to pay
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**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
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**Penetration pricing policy**
tries to sell whole market at one low price
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**Introductory price dealing**
temporary price cuts to speed new products into a market and get customers to try them
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**Basic list prices**
prices final customers or users are normally asked to pay for products
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**Quantity discounts**
discounts offered to encourage customers to buy in larger amounts
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**Cumulative quantity discounts**
apply to purchases over a given period and the discount usually increases as the amount purchased increases
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**Non cumulative quantity discounts**
apply only to individual orders
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**Net**
payment for face value of invoice is due immediately
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**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.
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**Trade (functional) discount**
 list price reduction given to channel members for the job they are going to do
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**Allowances**
like discounts, are given to final customers for doing something or or accepting less of nothing
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**Advertising allowances**
are price reductions given to firms in the channel to encourage them to advertise or otherwise promote the suppliers products locally
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**Stocking allowances**
aka slotting allowances: given to an intermediary to get shelf space for a productÂ
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**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
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**Trade in allowance**
price reduction given for usd products when similar new products are bought
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**Rebates**
refunds paid to consumers after a purchase
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**Value pricing**
setting a fair price level for a marketing mix that really gives the target market superior customer value
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**Markup chain**
the sequence of markups firms use at different levels in a channel
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**Stockturn rate**
high or low often depends on the industry and the product involved
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**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
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**Total cost**
sum of total fixed and total variable costs
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**Average cost (per unit**)
obtained by dividing total cost by the related quantityÂ
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**Average fixed cost (per unit**)
obtained by dividing total fixed cost by the related quantity
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**Average variable cost (per unit**)
obtained by dividing total variable cost by the related quantity
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**Break even analysis**
evaluates whether the firm will be able to break even with a particular price
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**Break even point (BEP**)
quantity where the firm’s total cost will just equal its total revenue
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**Fixed cost (FC) contribution per unit**
assumed selling price per unit minus the variable cost per unit
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**Marginal analysis**
focuses on changes in total revenue and total cost from selling one more unit to find the most profitable price and quantity
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**Price sensitivity**
refers to degree to which customers purchase decisions are affected by the price
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**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
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**Reference price**
price they expect to pay for many of the products they purchase
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**Leader pricing**
setting some very low prices to get customers into retail stores
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**Freemium (free and premium**)
providing a product for no charge while money is charged for additional features that enhance the products use
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**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
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**Psychological pricing**
setting prices that have special appeal to target customers
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**Odd even pricing**
setting prices that end in certain numbers
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**Subscription pricing**
customers pay on a periodic basis for access to a product
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**Price lining**
setting a few price levels for a product line and then marking all items at these prices
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**Demand backward pricing**
setting an acceptable final consumer price and working backward to what a producer can charge
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**Prestige pricing**
setting a rather higher price to suggest high quality or high status
Studied by 7 people
Note 
Flashcard (90)