Chapter 17 Vocab

Question 1

Advertising

Answer 1

Any paid form of non personal communication about an organization, product, service, or idea by an identified sponsor.

Question 2

All-you-can-afford Budgeting

Answer 2

Allocating funds to promotion only after all other budget items are covered.

Question 3

Channel of Communication

Answer 3

The means (e.g., a salesperson, advertising media, or public relations tools) of conveying a message to a receiver during the communication process.

Question 4

Communication

Answer 4

The process of conveying a message to others that requires six elements: a source, a message, a channel of communication, a receiver, and the processes of encoding and decoding.

Question 5

Competitive Parity Budgeting

Answer 5

Allocating funds to promotion by matching the competitor’s absolute level of spending or the proportion per point of market share. Also called “Matching competitors” or “Share of market”.

Question 6

Decoding

Answer 6

The process of having the receiver take a set of symbols, the message, and transform them back to an idea during the communication process.

Question 7

Direct Marketing

Answer 7

A promotion alternative that uses direct communication with consumers to generate a response in the form of an order, a request for further information, or a visit to a retail outlet.

Question 8

Direct Orders

Answer 8

The result of direct marketing offers that contain all the information necessary for a prospective buyer to make a decision to purchase and complete the transaction.

Question 9

Encoding

Answer 9

The process of having the sender transform an idea into a set of symbols during the communication process.

Question 10

Feedback

Answer 10

In the feedback loop, the sender’s interpretation of the response, which indicates whether a message was decoded and understood as intended during the communication process.

Question 11

Field of Experience

Answer 11

A mutually shared understanding and knowledge that the sender and receiver apply to the message so that it can be communicated effectively during the communication process.

Question 12

Hierarchy of Effects

Answer 12

The sequence of stages a prospective buyer goes through from initial awareness of a product to eventual action that includes awareness, interest, evaluation, trial, and adoption of the product.

Question 13

Integrated Marketing Communications (IMC)

Answer 13

The concept of designing marketing communications programs that coordinate all promotional activities — advertising, personal selling, sales promotion, public relations, and direct marketing — to provide a consistent message across all audiences.

Question 14

Lead Generation

Answer 14

The result of a direct marketing offer designed to generate interest in a product or service and a request for additional information.

Question 15

Message

Answer 15

The information sent by a source to a receiver during the communication process.

Question 16

Noise

Answer 16

Extraneous factors that can work against effective communication by distorting a message or the feedback received during the communication process.

Question 17

Objective and Task Budgeting

Answer 17

Allocating funds to promotion whereby the company: (1) determines its promotion objectives; (2) outlines the tasks to accomplish those objectives; and (3) determines the promotion cost of performing those tasks.

Question 18

Percentage of Sales Budgeting

Answer 18

Allocating funds to promotion as a percentage of past or anticipated sales, in terms of either dollars or units sold.

Question 19

Personal Selling

Answer 19

The two-way flow of communication between a buyer and seller, often in a face-to-face encounter, designed to influence a person’s or group’s purchase decision.

Question 20

Promotional Mix

Answer 20

The combination of one or more communication tools used to: (1) inform prospective buyers about the benefits of the product, (2) persuade them to try it, and (3) remind them later about the benefits they enjoyed by using the product.

Question 21

Public Relations

Answer 21

A form of communication management that seeks to influence the feelings, opinions, or beliefs held by customers, prospective customers, stockholders, suppliers, employees, and other publics about a company and its products or services.

Question 22

Publicity

Answer 22

A nonpersonal, indirectly paid presentation of an organization, product, or service.

Question 23

Pull Strategy

Answer 23

Directing the promotional mix at ultimate consumers to encourage them to ask the retailer for a product.

Question 24

Push Strategy

Answer 24

Directing the promotional mix to channel members to gain their cooperation in ordering and stocking the product.

Question 25

Receivers

Answer 25

Consumers who read, hear, or see the message sent by a source during the communication process.

Question 26

Response

Answer 26

In the feedback loop, the impact the message had on the receiver’s knowledge, attitudes, or behaviors during the communication process.

Question 27

Sales Promotion

Answer 27

A short-term inducement of value offered to arouse interest in buying a product or service.

Question 28

Source

Answer 28

A company or person who has information to convey during the communication process.

Question 29

Traffic Generation

Answer 29

The outcome of a direct marketing offer designed to motivate people to visit a business.