Chapter 13 promo and pricing strategies

Question 1

Advertising

Answer 1

Paid non-personal communication, usually targeted at large numbers of potential buyers.

Question 2

Break even analysis

Answer 2

Price Related technique used to determine the minimum sales volume a product must generate at a certain price level to cover all cost.

Question 3

Cause advertising

Answer 3

Form of institutional advertising that promotes a specific viewpoint on a public issue as a way to influence public opinion and the legislative process.

Question 4

Competitive pricing

Answer 4

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.

Question 5

Cooperative advertising

Answer 5

Allowances provided by marketers in which they share the cost of local advertising other company’s product or product line with channel partners.

Question 6

Cost based pricing

Answer 6

Formulas that calculate total costs per unit and then add mark ups to cover overhead costs and generate profits.

Question 7

Creative selling

Answer 7

Persuasive type of promotional presentation

Question 8

Every day low pricing (EDLP)

Answer 8

Every day low pricing 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.

Question 9

Guerrilla marketing

Answer 9

Innovated, low cost marketing efforts designed to get customers’ attention in unusual ways

Question 10

Infomercials

Answer 10

Form of broadcast direct marketing; 30 minute programs that resemble regular TV programs, but our devoted to silly goods or services.

Question 11

Institutional advertising

Answer 11

Involves messages that promote concepts, ideas, philosophies, or Goodwill for industries, companies, organizations, or government entities.

Question 12

Integrated marketing communications (IMC)

Answer 12

Coordination of all promotional activities - media advertising, direct mail, personal selling, sales promotion, and public relations – to produce a unified, customer focused message.

Question 13

Missionary selling

Answer 13

Indirect form of selling in which the representative promotes goodwill for a company or provides technical or operational assistance to the customer.

Question 14

Non-personal selling

Answer 14

Consists of advertising, sales promotion, direct marketing and public relations

Question 15

Odd pricing

Answer 15

Pricing method using uneven amounts, which sometimes appear smaller than they really are to consumers.

Question 16

Order processing

Answer 16

Form of selling, mostly at the wholesale and retail levels, that involves identifying customer needs, pointing them out to customers, and completing orders.

Question 17

Penetration pricing

Answer 17

Strategy that such a low price of a major marketing weapon.

Question 18

Personal selling

Answer 18

The most basic form of promotion: a direct person – to-person promotional presentation to a potential buyer

Question 19

Point of purchase (POP) advertise

Answer 19

Displays or demonstration that promote products when and where consumers by then, such as in retail stores

Question 20

Positioning

Answer 20

Form a 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.

Question 21

Prestige pricing

Answer 21

Strategies that establish relatively high prices to develop and maintain an image of quality and exclusiveness.

Question 22

Price

Answer 22

Exchange value of a good or service

Question 23

Product advertising

Answer 23

Consistent messages design to sell a particular good or service.

Question 24

Product placement

Answer 24

Form of promotion in which marketers pay placement fees to have their products showcase in various media, Ranging from newspaper and magazines to original online television a movie.

Question 25

Profitability objectives

Answer 25

Common objectives included in the strategic plans of most companies.

Question 26

Promotion

Answer 26

Function of informing, persuading, and influencing a purchase decision

Question 27

Promotional mix

Answer 27

Combination of personal and non-personal selling components design to meet the needs of a companies target customers and effectively and efficiently communicate its message to them

Question 28

Public relations

Answer 28

Organizations communications and relationships with his various public audiences

Question 29

Publicity

Answer 29

Nonpersonal stimulation of demand for a good, service, place, idea, event, person, or organization by unpaid placement of information imprint or broadcast media

Question 30

Pauline strategy

Answer 30

Promoting a product by generating consumer demand for it, primarily through advertising and sales promotion appeals

Question 31

Sales promotion

Answer 31

Consist of types of promotion such as coupons, product samples, and rebates that support advertising and personal selling

Question 32

Skimming pricing

Answer 32

Strategy that sets an intentionally hi Price relative to the prices of competing products

Question 33

Sponsorship

Answer 33

Involves providing funds for a sporting or cultural event in exchange for a direct association with the event

Question 34

Telemarketing

Answer 34

Personal selling conducted entirely by telephone, which provides a companies marketers with a higher return on their expenditures, an immediate response, and an opportunity for personalized two wayconversation

Question 35

Trade promotion

Answer 35

Sales promotion gear to marketing intermediari rather than to final consumers

Question 36

Volume objectives

Answer 36

Object placed on pricing decisions on market share, the percentage of a market controlled by certain companies or products