Chapter 13 Flashcards
Advertising
paid nonpersonal communication, usually targeted at large numbers of potential buyers.
Breakeven Analysis
pricing related technique used to determine the minimum sales volume a product must generate at a certain price level to cover all costs.
Cause Advertising
form of institutional advertising that promotes a specific viewpoint on a public issue as a way to influence public opinion and the legislative process.
Competitive Pricing
strategy that tries to reduce the emphasis on price competition by matching other companies’ prices and concentrating their own marketing efforts on the product, distribution, and promotional elements of the marketing mix.
Cooperative Advertising
allowances provided by marketers in which they share the cost of local advertising of their company’s product or product line with channel partners.
Cost-Based Pricing
formulas that calculate total costs per unit and then add markups to cover overhead costs and generate profits.
Creative Selling
persuasive type of promotional presentation.
Everyday Low Pricing (EDLP)
is a strategy devoted to maintaining continuous low prices rather than relying on short-term price-cutting tactics such as cents-off coupons, rebates, and special sales.
Guerrilla Marketing
innovative, low-cost marketing efforts designed to get consumers’ attention in unusual ways.
Infomercials
form of broadcast direct marketing; 30-minute programs that resemble regular TV programs, but are devoted to selling goods or services.
Institutional Advertising
involves messages that promote concepts, ideas, philosophies, or goodwill for industries, companies, organizations, or government entities.
Integrated Marketing Communications (IMC)
coordination of all promotional activities—media advertising, direct mail, personal selling, sales promotion, and public relations—to produce a unified, customer-focused message.
Missionary Selling
indirect form of selling in which the representative promotes goodwill for a company or provides technical or operational assistance to the customer.
Nonpersonal Selling
consists of advertising, sales promotion, direct marketing, and public relations.
Order Processing
form of selling, mostly at the wholesale and retail levels, that involves identifying customer needs, pointing them out to customers, and completing orders.
Penetration Pricing
strategy that sets a low price as a major marketing weapon.
Personal Selling
the most basic form of promotion: a direct person-to-person promotional presentation to a potential buyer.
Point-of-Purchase (PO) Advertising
displays or demonstrations that promote products when and where consumers buy them, such as in retail stores.
Positioning
form of promotion in which marketers attempt to establish their products in the minds of customers by communicating to buyers meaningful distinctions about the attributes, price, quality, or use of a good or service.
Prestige Pricing
strategies that establish relatively high prices to develop and maintain an image of quality and exclusiveness.
Price
exchange value of a good or service.
Product Advertising
consists of messages designed to sell a particular good or service.
Product Placement
form of promotion in which marketers pay placement fees to have their products showcased in various media, ranging from newspapers and magazines to original online television and movies.
Profitability Objectives
common objectives included in the strategic plans of most companies.
Promotion
function of informing, persuading, and influencing a purchase decision.
Promotional Mix
combination of personal and nonpersonal selling components designed to meet the needs of a company’s target customers and effectively and efficiently communicate its message to them.
Publicity
nonpersonal stimulation of demand for a good, service, place, idea, event, person, or organization by unpaid placement of information in print or broadcast media.
Public Relations
organization’s communications and relationships with its various public audiences.
Pulling Strategy
promoting a product by generating consumer demand for it, primarily through advertising and sales promotion appeals.
Pushing Strategy
personal selling to market an item to wholesalers and retailers in a company’s distribution channels.
Sales Promotion
consists of types of promotion such as coupons, product samples, and rebates that support advertising and personal selling.
Skimming Pricing
strategy that sets an intentionally high price relative to the prices of competing products.
Specialty Advertising
promotional items that prominently display a company’s name, logo, or business slogan.
Sponsorship
involves providing funds for a sporting or cultural event in exchange for a direct association with the event.
Telemarketing
personal selling conducted entirely by telephone, which provides a company’s marketers with a high return on their expenditures, an immediate response, and an opportunity for personalized two-way conversation.
Trade Promotion
sales promotion geared to marketing intermediaries rather than to final consumers.
Volume Objectives
objects based on pricing decisions on market share, the percentage of a market controlled by a certain company or product.
