Chapter 16

Question 1

marketing communication activities, other than advertising, personal selling, and public relations, in which a short-term incentive motivates consumers or members of the distribution channel to purchase a good or service immediately, either by lowering the price or by adding value (used to stimulate trial, “sweeten the deal,” etc.)

Answer 1

Sales Promotion

Question 2

directed at ultimate consumers

Answer 2

Consumer Sales Promotion

Question 3

directed at resellers/members of the marketing channel.

Answer 3

Trade Sales Promotion

Question 4

directed at firm’s employees/ stockholders

Answer 4

Internal Sales Promotion

Question 5

typically a printed certificate giving the bearer a stated price reduction or special value on a specific product, generally for a specific period of time.

Answer 5

Coupons

Question 6

a preprinted coupon (sometimes contained in an ad) placed into a separate publication, such as a newspaper.

Answer 6

Freestanding Insert

Question 7

uses a dispenser mounted near the product

Answer 7

On-Shelf Couponing

Question 8

distribution of coupons on the internet-growing phenomenon

Answer 8

Online Couponing

Question 9

cash reimbursements to a buyer for purchasing a product. They act as an economic appeal to attract customers and encourage timely buying (by the deadline) and they lower perceived risk (since the price is lower).

Answer 9

Rebates

Question 10

items given free or at a bargain price to encourage the consumer to buy. e.g., 101 Dalmatian glasses, teeny beanies at fast food outlets

Answer 10

Premiums

Question 11

(aka frequent buyer programs) - reward loyal consumers for making multiple purchases. e.g., frequent flyer programs offered by airlines

Answer 11

Loyalty Marketing Programs

Question 12

a small size of a product made available to prospective purchasers, usually free of charge. (Can get expensive) Offers a risk-free (or reduced risk) opportunity to try the product.

Answer 12

Sampling

Question 13

includes any promotional display set up at the retailer’s location to build traffic, advertise the product, or induce impulse buying. Examples include:

	1. Shelf "talkers" - signs attached to store shelves
	2. Shelf extenders - attachments that extend shelves so products stand out
	3. Ads on grocery carts and bags
	4. End-of-aisle and floor-stand displays
	5. TV monitors at checkout counters
	6. In-store audio messages and audiovisual displays

Answer 13

Point-of-Purchase Promotion

Question 14

(aka tie-in) – is the collaboration of two or more firms in a sales promotion. e.g., AT&T’s True Rewards program offers discounts on products/services at Blockbuster, Pearle Vision, Red Lobster, and several magazines.

Answer 14

Cross-Promotions

Question 15

items that are useful or interesting merchandise given away free of charge and typically carrying an imprinted name or message. e.g., pens, calendars, notebooks, key chains, t-shirts, letter openers

Answer 15

Advertising specialties

Question 16

are short-term special allowances, discounts, or deals granted to resellers as an incentive to stock, feature, or in some way participate in the cooperative promotion of a product.

Answer 16

Trade Allowances

Question 17

(a payment back to the buyer for purchasing a certain amount of mdse.); similar to a rebate but it’s a reward for buying a certain quantity of goods

Answer 17

Buying Allowances

Question 18

money or product provided to a retailer for featuring the manufacturer’s brand in an agreed-upon in-store display

Answer 18

Display Allowance

Question 19

money paid to a reseller for including the manufacturer’s product (along with other products) in the reseller’s advertising efforts.

Answer 19

Advertising Allowance

Question 20

the manufacturer helps finance the ad and the ad features only the mfr.’s product; they usually supply the ad too.

Answer 20

Cooperative Advertising

Question 21

bonuses for pushing the manufacturer’s brand through the distribution channel. It is money paid by the manufacturer to retail salespeople to encourage them to promote its products over competing brands. To be legal, be sure that you have the permission of retail management and that you include all employees selling your products.

Answer 21

Push Money (spiffs)

Question 22

offer training to intermediary’s personnel (appropriate esp. if product is complex)

Answer 22

Training Programs

Question 23

typically associates prizes with sales of the sponsor’s product

Answer 23

Trade Contests

Question 24

displays used at the retail level to call customer attention to a featured product

Answer 24

Point-of-purchase displays

Question 25

a periodic, semipublic event sponsored by trade, professional, and industrial associations at which suppliers rent booths to display products and provide information to potential buyers. Allows you to demonstrate products, acquire new-prospect leads, make sales, provide information, compare competing brands, introduce new products, enhance the corporate image, and strengthen relationships with existing customers.

Answer 25

Trade Shows

Question 26

Any form of nonpersonal, paid communication using mass communication in which the sponsor or company is identified.

Answer 26

Advertising

Question 27

a phenomenon in which spending for advertising and sales promotion increase sales or market share up to a certain level but then produces diminishing returns. Understanding this phenomenon helps the marketer use budgets wisely.

Answer 27

Advertising Response Function

Question 28

promoting the corporation as a whole (several products) rather than promoting a single product in an effort to establish, change, or maintain the corporation’s identity and image.

Answer 28

Institutional Advertising

Question 29

a form of institutional advertising used to promote the company’s viewpoint on a topic – often used for controversial issues, issues of blame/criticism, political issues/regulations, etc. Example: BP’s advertisements about their efforts in the Gulf of Mexico

Answer 29

Advocacy Advertising

Question 30

Promotion of the benefits of a specific good or service

Answer 30

Product Advertising

Question 31

designed to stimulate primary demand for a new product or product category. (introduction stage in the product life cycle)

Answer 31

Pioneering Advertising

Question 32

designed to influence demand for a specific brand i.e. selective demand

Answer 32

Competitive Advertising

Question 33

compare two or more specifically named or shown competing brands on one or more specific attributes. Good example – Mac vs. PC

Answer 33

Comparative Advertising

Question 34

is a series of related advertisements focusing on a common theme, slogan, and set of advertising appeals. A specific advertising effort for a particular product that extends for a defined period of time.

Answer 34

Advertising Campaign

Question 35

a series of decisions advertisers make regarding the selection and use of media, allowing the marketer to optimally and cost-effectively communicate the message to the target audience. Which medium? When to advertise? How long to advertise?

Answer 35

Media Planning

Question 36

the cost of reaching one member of the target market. Often measured in thousands – CPM – cost per thousand. Also measured in cost per click for internet ads.

Answer 36

Cost Per Contact

Question 37

the number of different target consumers who are exposed to a commercial at least once during a specific period, usually four weeks.

Answer 37

Reach

Question 38

the number of times an individual is exposed to a message during a specific period.

Answer 38

Frequency

Question 39

a medium’s ability to reach a precisely defined market

Answer 39

Audience Selectivity

Question 40

is the level of distraction to the target audience in a medium; e.g., competing ads, clutter Direct mail is a private medium whereas a street lined with billboards is very cluttered and the prospect is distracted.

Answer 40

Noise Level

Question 41

designates the medium or media (TV, radio, magazine, etc.) to be used, the specific vehicles (People magazine, Glee on TV, etc.), and the insertion dates of the advertising.

Answer 41

Media Scheduling

Question 42

the element in the promotional mix that evaluates public attitudes, identifies issues that may elicit public concern, and executes programs to gain public understanding and acceptance.

Answer 42

Public Relations

Question 43

the effort to capture media attention, e.g., through articles or editorials in publications or through human-interest stories on radio or TV programs. Usually initiated through a press release.

Answer 43

Publicity

Question 44

a strategy that involves getting one’s product, service, or name to appear in a movie, TV show, radio program, magazine, newspaper, video game, video/audio clip, book, or commercial for another product.

Answer 44

Product Placement

Question 45

the coordinated effort to handle the effects of unfavorable publicity, ensuring fast and accurate communication in times of emergency. BP’s disaster in the Gulf of Mexico is an example.

Answer 45

Crisis Management