Untitled Flashcards Set

Advertising

• Definition: Paid communication intended to inform, persuade, or remind consumers about products or services.

• Q&A:

  • Q: What is the primary goal of advertising?

  • A: To influence consumer behavior and drive sales or awareness.

• Example: A TV commercial showcasing the features of a new smartphone.

Advertising Objectives

• Definition: Goals that guide advertising efforts, such as increasing awareness, generating interest, or driving sales.

• Q&A:

  • Q: What are common advertising objectives?

  • A: Informative, persuasive, and reminder objectives.

• Example: A campaign to increase brand awareness of an eco-friendly detergent.

Informative Advertising

• Definition: Advertising focused on providing information about a product or service.

• Q&A:

  • Q: When is informative advertising most useful?

  • A: During the introduction phase of a product lifecycle.

• Example: An ad explaining how an electric vehicle reduces carbon emissions.

Persuasive Advertising

• Definition: Advertising aimed at convincing consumers to choose a specific brand or product.

• Q&A:

  • Q: What techniques are used in persuasive advertising?

  • A: Emotional appeals, endorsements, and comparisons.

• Example: An ad showing how a fitness tracker improves your health.

Comparative Advertising

• Definition: Advertising that directly compares a product to competitors.

• Q&A:

  • Q: Why do companies use comparative advertising?

  • A: To highlight advantages over competitors.

• Example: A detergent ad showing it removes stains better than another brand.

Reminder Advertising

• Definition: Advertising designed to remind customers of a product or service.

• Q&A:

  • Q: Why is reminder advertising important?

  • A: To maintain brand loyalty and encourage repeat purchases.

• Example: A Coca-Cola ad during the holiday season.

Reinforcement Advertising

• Definition: Ads aimed at reassuring customers they made the right purchase.

• Q&A:

  • Q: How does reinforcement advertising benefit a brand?

  • A: It builds customer loyalty and satisfaction.

• Example: A car company thanking customers for choosing their brand.

Institutional Advertising

• Definition: Promotes a company’s values or reputation rather than specific products.

• Q&A:

  • Q: What is the purpose of institutional advertising?

  • A: To build goodwill and strengthen brand identity.

• Example: An ad showcasing a company's commitment to sustainability.

Advocacy Advertising

• Definition: Advertising that promotes a social, political, or environmental cause.

• Q&A:

  • Q: How does advocacy advertising benefit a brand?

  • A: It aligns the brand with positive social values.

• Example: A company promoting renewable energy initiatives.

Native Advertising

• Definition: Ads that blend seamlessly with the content of the platform they appear on.

• Q&A:

  • Q: Why is native advertising effective?

  • A: It feels less intrusive and engages users more effectively.

• Example: A sponsored article promoting skincare products on a lifestyle blog.

Advertising Campaign

• Definition: A coordinated series of advertisements with a unified theme or goal.

• Q&A:

  • Q: What elements are essential in an advertising campaign?

  • A: Clear objectives, creative messaging, and targeted media.

• Example: Nike’s “Just Do It” campaign focusing on empowering athletes.

5 Steps in Developing/Implementing Advertising Campaign

1. Identify the target audience.

2. Set advertising objectives.

3. Develop the creative message.

4. Select appropriate media channels.

5. Measure campaign effectiveness.

• Q&A:

  • Q: Why is measuring effectiveness critical?

  • A: To assess whether objectives are met and guide future campaigns.

• Example: Monitoring website traffic after launching an online ad campaign.

Advertising Metrics

• Definition: Measurements used to evaluate ad performance, such as reach and frequency.

• Q&A:

  • Q: What do advertising metrics help companies achieve?

  • A: They provide insights into campaign success and ROI.

• Example: Tracking impressions and clicks for a digital ad.

Frequency

• Definition: The number of times an individual is exposed to an ad within a time period.

• Q&A:

  • Q: How does frequency influence advertising success?

  • A: Repeated exposure increases message retention.

• Example: Seeing a billboard ad three times a week on your commute.

Reach

• Definition: The total number of unique individuals exposed to an ad.

• Q&A:

  • Q: Why is reach an important metric?

  • A: It measures how widely the message is distributed.

• Example: A Super Bowl ad reaching 100 million viewers.

Rational Appeal

• Definition: Ads that use logic and facts to persuade consumers.

• Q&A:

  • Q: When is rational appeal most effective?

  • A: For high-involvement products like cars or appliances.

• Example: An ad comparing fuel efficiency of hybrid vehicles.

Emotional Appeal

• Definition: Ads that evoke emotions to influence behavior.

• Q&A:

  • Q: What emotions are commonly used in emotional appeals?

  • A: Happiness, fear, love, and nostalgia.

• Example: A charity ad showing children in need to encourage donations.

Puffery

• Definition: Exaggerated or subjective claims in advertising not meant to be taken literally.

• Q&A:

  • Q: Is puffery considered misleading?

  • A: No, as it’s understood as opinion or hyperbole.

• Example: A pizza ad claiming it has “the best taste in the world.”

Advertising Ethics

• Definition: Guidelines to ensure advertising is truthful, fair, and socially responsible.

• Q&A:

  • Q: Why are advertising ethics important?

  • A: To build trust and avoid legal or reputational issues.

• Example: Avoiding false claims about health benefits in a food ad.

Sales Promotion

Coupons

• Definition: Vouchers offering discounts on products or services.

• Example: A 20% off coupon for online shopping.

Cents Off

• Definition: Discounts in the form of a reduced price on the packaging.

• Example: A shampoo bottle marked “50 cents off.”

Rebates

• Definition: Partial refunds offered after a purchase.

• Example: A $50 mail-in rebate for buying a laptop.

Samples

• Definition: Free product trials to encourage purchases.

• Example: Cosmetic brands giving small samples of new products.

Premiums

• Definition: Free or low-cost items given as incentives with purchases.

• Example: A tote bag given with a magazine subscription.

Contests

• Definition: Promotions requiring participants to compete for prizes.

• Example: A photo contest with the best entry winning a vacation.

Sweepstakes

• Definition: Random drawings for prizes, requiring no purchase or skill.

• Example: A “win a free car” sweepstakes entry.

Loyalty Programs

• Definition: Rewards programs encouraging repeat business.

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Merchandise Allowance

• Definition: A promotional incentive offered by manufacturers to retailers to encourage them to promote or display the manufacturer’s product.

• Q&A:

  • Q: Why do manufacturers provide merchandise allowances?

  • A: To boost product visibility and sales in retail stores.

• Example: A cereal manufacturer offering a discount to retailers for prominently displaying its products.

Cooperative Advertising

• Definition: An arrangement where manufacturers and retailers share the cost of advertising a product.

• Q&A:

  • Q: What is the primary benefit of cooperative advertising?

  • A: It reduces costs for both the retailer and manufacturer while increasing exposure.

• Example: A clothing brand and a department store sharing the cost of a local newspaper ad.

Dealer Loader

• Definition: Incentives provided by manufacturers to retailers to encourage bulk purchasing or product promotion.

• Q&A:

  • Q: How does a dealer loader benefit retailers?

  • A: It provides extra stock or gifts that improve profitability.

• Example: A car dealership receiving a free display vehicle for meeting a sales quota.

Employee Sales Promotion

• Definition: Incentives or training provided to employees to improve sales performance.

• Q&A:

  • Q: What types of rewards are common in employee sales promotions?

  • A: Bonuses, contests, and recognition awards.

• Example: A retailer offering sales associates bonuses for exceeding monthly sales targets.

Public Relations (PR)

• Definition: Managing a company’s communication with the public to build a positive image and maintain good relationships.

• Q&A:

  • Q: What is the primary goal of PR?

  • A: To foster a positive image and manage public perceptions.

• Example: A company issuing a press release about its charitable work.

Public Relations Tools

1. Annual Reports

   • Definition: Documents outlining a company’s financial and operational achievements over the year.

   • Example: A nonprofit highlighting its yearly accomplishments to attract donors.

2. Speeches

   • Definition: Formal presentations to communicate messages directly to an audience.

   • Example: A CEO speaking about the company’s sustainability goals at a conference.

3. Blogs

   • Definition: Online articles written to share expertise or insights and engage audiences.

   • Example: A fitness brand writing blogs on healthy lifestyles to promote its products.

4. Brochures

   • Definition: Printed or digital materials summarizing a company’s offerings.

   • Example: A travel agency distributing brochures about vacation packages.

5. Event Sponsorships

   • Definition: Financial or in-kind support of an event to promote a brand.

   • Example: A beverage company sponsoring a music festival.

6. Press Release

   • Definition: Official statements issued to the media to share news or announcements.

   • Example: A tech company announcing a product launch through a press release.

7. Publicity

   • Definition: Free media coverage generated by a company’s activities or news.

   • Example: A restaurant gaining media attention after hosting a celebrity chef.

8. Offline Publicity

   • Definition: Publicity through traditional media like newspapers or TV.

   • Example: A retail store featured in a local newspaper.

9. Online Publicity

   • Definition: Publicity through digital platforms like blogs and social media.

   • Example: A viral tweet about a brand’s new product.

Image Repair Theory

• Definition: A communication strategy used to address and recover from negative publicity.

• Q&A:

  • Q: Why is image repair critical?

  • A: To rebuild trust and minimize damage to a brand’s reputation.

• Example: A company apologizing and implementing corrective measures after a product recall.

Crisis Communication

• Definition: Strategic communication during emergencies to minimize harm and maintain public trust.

• Q&A:

  • Q: What is the key to effective crisis communication?

  • A: Transparency, speed, and empathy.

• Example: A company addressing data breaches by informing customers promptly.

Personal Selling

• Definition: Direct interaction between a salesperson and a customer to make a sale.

• Q&A:

  • Q: Why is personal selling effective?

  • A: It allows for tailored communication and building relationships.

• Example: A car salesperson helping a customer choose a vehicle based on their needs.

Relationship Selling

• Definition: Building long-term relationships with customers to encourage loyalty and repeat business.

• Q&A:

  • Q: How does relationship selling benefit companies?

  • A: It increases customer retention and lifetime value.

• Example: A financial advisor maintaining regular contact with clients.

Steps of Personal Selling Process

1. Prospecting

   • Definition: Identifying potential customers.

   • Example: A real estate agent researching potential homebuyers.

2. Pre-Approach

   • Definition: Gathering information about prospects before interaction.

   • Example: Learning about a client’s preferences before a meeting.

3. Approach

   • Definition: Initial contact with a potential customer.

   • Example: A salesperson introducing themselves at a trade show.

4. Sales Presentation

   • Definition: Explaining the product’s benefits to the customer.

   • Example: A software company demonstrating its product to a business.

5. Objections

   • Definition: Customer concerns or doubts raised during the sales process.

   • Example: A customer questioning the price of a service.

6. Closing

   • Definition: Securing the customer’s agreement to purchase.

   • Example: A salesperson asking for the sale after addressing objections.

7. Follow-Up

   • Definition: Checking in after the sale to ensure customer satisfaction.

   • Example: A phone call to ensure the customer is satisfied with their purchase.

Sales Management

• Definition: Overseeing and directing a company’s sales team to achieve goals.

• Q&A:

  • Q: What are the key roles of a sales manager?

  • A: Setting goals, training, and evaluating performance.

• Example: A sales manager providing monthly performance feedback.

Sales Team Roles

1. Captive Salespeople

   • Definition: Employees dedicated to selling only their company’s products.

   • Example: A salesperson working exclusively for Apple.

2. Independent Sales Representative

   • Definition: Freelancers selling products for multiple companies.

   • Example: A rep selling for different home appliance brands.

3. Inside Salespeople

   • Definition: Sales staff who work from the company’s office or remotely.

   • Example: Telemarketers contacting customers by phone.

4. Outside Salespeople

   • Definition: Salespeople who visit clients in person.

   • Example: A pharmaceutical rep visiting doctors’ offices.

5. Sales Goals/Objectives

   • Definition: Targets set for sales teams to achieve.

   • Example: A goal of increasing sales by 20% in a quarter.

Territory Management

• Definition: The process of organizing and managing sales efforts within specific geographic or market territories.

• Q&A:

  • Q: Why is territory management important?

  • A: It ensures resources are allocated efficiently, reduces overlap, and improves sales coverage.

• Example: Assigning one salesperson to cover the Midwest region to focus on customers there.

Approaches to Territory Management

1. Geographic Approach

   • Definition: Organizing sales territories based on geographical boundaries.

   • Example: Dividing sales regions into North, South, East, and West zones.

2. Product Approach

   • Definition: Organizing sales territories based on specific product lines.

   • Example: Assigning one salesperson to sell software and another to sell hardware.

3. Customer Approach

   • Definition: Organizing sales territories based on customer segments or types.

   • Example: Assigning one team to handle corporate clients and another for small businesses.

4. Combination Approach

   • Definition: A mix of geographic, product, and customer approaches for optimal coverage.

   • Example: A salesperson focuses on small businesses in the East region for a specific product line.

Sales Implementation

• Definition: The process of executing the sales plan to achieve organizational goals.

• Q&A:

  • Q: What is key to successful sales implementation?

  • A: Effective training, clear objectives, and strong leadership.

• Example: Launching a new CRM system to help sales reps streamline their workflow.

Salary

• Definition: A fixed compensation paid to employees regularly.

• Q&A:

  • Q: How does a salary benefit salespeople?

  • A: It provides financial stability regardless of performance.

• Example: A salesperson receiving $60,000 annually, regardless of the number of sales made.

Incentives

• Definition: Additional rewards offered to motivate and boost performance.

• Q&A:

  • Q: What types of incentives are commonly used in sales?

  • A: Bonuses, commissions, and recognition awards.

• Example: A salesperson earning a $5,000 bonus for exceeding their sales quota.

Types of Incentives

1. Intrinsic Incentives

   • Definition: Internal motivators like job satisfaction or personal growth.

   • Example: A salesperson feeling fulfilled after helping a customer solve a problem.

2. Extrinsic Incentives

   • Definition: External rewards like money or recognition.

   • Example: A salesperson receiving a "Top Seller of the Month" award.

Compensation Plan

• Definition: A structured plan outlining how employees are paid, including salary, commissions, and bonuses.

• Q&A:

  • Q: Why is a well-designed compensation plan critical?

  • A: It motivates employees and aligns their goals with the company’s objectives.

• Example: A compensation plan offering a $50,000 base salary plus 5% commission on sales.

Sales Control

• Definition: The process of monitoring and regulating sales activities to meet objectives.

• Q&A:

  • Q: What tools are commonly used for sales control?

  • A: CRM systems, sales reports, and performance reviews.

• Example: A manager tracking sales reps’ progress through monthly performance reports.

Sales Assessment

• Definition: Evaluating the performance of salespeople and sales strategies.

• Q&A:

  • Q: Why is sales assessment important?

  • A: It identifies strengths, weaknesses, and areas for improvement.

• Example: Analyzing quarterly sales data to determine if the team met its goals.

Customer Relationship Management (CRM)

• Definition: A system or strategy for managing a company’s interactions with current and potential customers.

• Q&A:

  • Q: What is the purpose of CRM?

  • A: To improve customer satisfaction, loyalty, and sales.

• Example: Using Salesforce to track customer interactions and sales opportunities.

CRM-Related Concepts

1. Touchpoint

   • Definition: Any interaction between a company and a customer.

   • Example: A customer visiting a brand’s website or contacting customer service.

2. CRM Process

   • Definition: The steps involved in managing customer relationships, including data collection, analysis, and engagement.

   • Example: Collecting customer feedback, analyzing it, and tailoring marketing campaigns accordingly.

3. Share of Customer

   • Definition: The percentage of a customer’s total spending in a category that goes to a specific company.

   • Example: A grocery store aiming to increase its share of a customer’s monthly food budget.

4. Customer Equity

   • Definition: The total value a company expects to earn from its customer base.

   • Example: A luxury brand calculating the long-term value of its loyal customers.

5. Customer Focus

   • Definition: A business strategy centered on understanding and meeting customer needs.

   • Example: A software company designing products based on user feedback.

6. Lifetime Value (LTV)

   • Definition: The total revenue a company expects to earn from a customer over their lifetime.

   • Example: A subscription service calculating the average lifetime value of each subscriber.