Chapter 17-19 Flashcards

1
Q

Institutional advertising

A

promotes organizational images, ideas and political issues

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2
Q

Advocacy advertising

A

promotes a company’s position on a public issue

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3
Q

Product advertising

A

promotes the uses, features and benefits of products

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4
Q

Two types of product advertising

A

pioneer advertising: tries to stimulate demand for a product category rather than a specific brand

competitive advertising: tries to stimulate demand for a specific brand

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5
Q

Three types of competitive advertising

A

comparative advertising: compares the sponsored brand with one or more identified brands

reminder advertising: used to remind consumers about a brand’s uses, benefits etc

reinforcement advertising: assures users they chose the right brand

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6
Q

ADVERTISING CAMPAIGN

A

1: find target audience
2: determine advertising objectives
3: determine platform
4: advertising appropriation: budget for a specific time period
5: media plan: specifies media vehicles to be used - reach the largest number of people
6: advertising message
7: execution
8: evaluation

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7
Q

Step 4: Appropriation

A

objective-and-task approach: budgeting by determining objectives and calculating those costs

percent-of-sales: multiplying the firm’s past and expected sales by a standard percent

competition-matching: determining a budget by trying to match competitor’s

arbitrary approach: budgeting for a campaign as specified by a high-level executive in the firm

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8
Q

Step 5: Media plan

A

media schedules:
continuous: ad runs at a constant level

flighting: ad runs for periods of time, alternating with times where the ad stops
pulsing: combines continuous and flighting

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9
Q

Step 8: Evaluation

A

pretest: eval of ads before the campaign begins
consumer jury: panel who pretests ads

posttest: eval after the campaign

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10
Q

PR

A

communication efforts used to create and maintain relations

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11
Q

Consumer-oriented sales promotions

A

sampling: in-store, events, on package

Couponing: most popular sales promo technique

premiums: offering an item either free or at a low price

Contests, sweepstakes, refunds, loyalty programs, event sponsorships

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12
Q

Price

A

value paid for a product

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13
Q

Barter

A

trading of products - oldest form of exchange

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14
Q

cost based methods

A

costs calculated on a per unit basis

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15
Q

competition based methods

A

price is an issue to match or beat competitors

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16
Q

value based methods

A

set prices according to the perceived or estimated value of a product or service

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17
Q

Odd pricing method

A

odd prices may be so traditional that sellers are afraid to round them off

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18
Q

marginal analysis

A

examines what happens to a firm’s costs and revenues when production changes by one unit

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19
Q

Fixed costs

A

costs that do not vary with changes in the number of units sold

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20
Q

average fixed cost

A

the fixed cost per unit produced

21
Q

variable cost

A

costs that vary directly with changes in the number of units produced or sold

22
Q

average variable cost

A

variable cost per unit produced

23
Q

Break-even analysis

A

knowing the number of units necessary to break-even is important in setting the price

24
Q

Internal reference price

A

a price developed in the buyer’s mind through experience with the product

25
External reference price
a comparison price provided by others
26
Consumers are characterized according their degree of:
value consciousness: concerned about price and quality of a product price consciousness: striving to pay low prices prestige sensitivity: drawn to products that signify prominence and status
27
Geographic pricing
reductions for the transportation and other costs related to the physical distance between buyer and seller
28
F.O.B factory
price of merchandise at the factory before shipment
29
F.O.B destination
price indicating the producer is absorbing shipping costs
30
Uniform geographic pricing
charging all customers the same price, regardless of geographic location
31
Expressives
participate in class, love to hear themselves talk
32
Amiable
make a friend, make a sell
33
Analytical
tell a story with numbers
34
Drivers
do it now, ask for forgiveness later
35
In sales
know a little about a lot
36
IMPORTANT DATA
35 students at forum, 33 starting a career in sales for every sales person = their profit supports 13 people in their organization in a 30 minute sales meeting - 800 visual cues 100:10:3:1
37
Calling on creative directors
most common place for salespoeple to be
38
Professional selling step 1
Pre approach: | get educated, professional dress, clean car, clean up LinkedIn
39
PS step 2
Approach: set appointment, give appropriate handshake | start with small talk, transition into purpose
40
PS Step 3
Needs identification: | SPIN QUESTIONING
41
SPIN QUESTIONING
S: Situational: what is going on MAIN QUESTIONS: MAIN DECISION MAKER? BUDGET? TIME? P: Problem like a doctor, find out symptoms I: Implication throw gasoline on the pain fire - figure out what causes pain N: Needs ID summary of what was learned - figure out what is missing
42
PS Step 4
Presentation: SMILE!
43
PS Step 5
Objection: | Yes, but overcoming technique
44
PS Step 6
Trial closes: show proof and get them to say yes
45
keystoning
50% margin
46
market penetration pricing
Start at low price, good quality to sell lots
47
price skimming
how much can I get based on the brand equity? upsell it a ton, lower prices when it's out of season
48
elastic demand
PRICE AFFECTS DEMAND
49
inelastic demand
PRICE DOESNT AFFECT DEMAND