Chapter 18

Question 1

Promotional Mix

Answer 1

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 3) remind them later about the benefits

Question 2

Advertising

Answer 2

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

Question 3

Personal Selling

Answer 3

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

Question 4

Public Relations

Answer 4

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

Question 5

Sales Promotion

Answer 5

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

Question 6

Direct Marketing

Answer 6

A promotional 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 7

Product Life Cycle and Promotion Startegy

Answer 7

Introduction, Growth, Maturity, Decline

Question 8

Product Characterisitcs

Answer 8

complexity, risk, and ancillary services

Question 9

Stages of the Consumer Journey

Answer 9

Prepurchase Stage, Purchase Stage, Postpurchase Stage

Question 10

Push Strategy

Answer 10

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

Question 11

Pull Strategy

Answer 11

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

Question 12

Promotion Decision Process

Answer 12

Developing, executing, and assessing

Question 13

Percentage of Sales Budgeting

Answer 13

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

Question 14

Competitive Parity Budgeting

Answer 14

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 15

All-you-can-afford Budgeting

Answer 15

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

Question 16

Objective and Task Budgeting

Answer 16

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

Question 17

Direct Orders

Answer 17

The results 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 18

Lead Generation

Answer 18

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

Question 19

Traffic Generation

Answer 19

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