Definitions Flashcards
advertising
Any form of communication paid by a sponsor for the purpose of informing and persuading the target market about products, services, organizations, or ideas. By using advertising. an organization can control what is said about its products or services, and when and where the
information appears.
advertising agency
A company that specializes in delivering the services required to design, execute, and place advertising messages in the various print and broadcast media. Ad agencies may also serve as consultants in developing marketing strategies.
AIDAS
An acronym for the five successive stages of consumer responsiveness in the selling process. The letters of the acronym .stand for Attention. Interest, Desire, Action, and Satisfaction.
asset
A use of funds (loan, investment, and so on), which represents money due to the bank.
asset-liability committee (ALCO)
The committee charged with ensuring that the bank’s risk,
funding needs, funding sources, and gaps are managed effectively.
attrition
The rate at which customer loss occurs.
audience research
The process of surveying consumers for their recollection of and reaction to an advertisement delivered in print or through a broadcast medium.
bank elasticity
The likelihood that customers will change banks in response to a change in the price of services.
basis point
One-hundredth (1/100) of one per cent, used in connection with interest rates. For example, a yield of 4.06% is 6 basis points higher than a yield of 4.00%.
behavior modification pricing
Setting a price that encourages consumers to alter their buying behavior.
brand story
A compelling way to integrate a brand into the organization; a 30-second “commercial” telling the story of the organization and containing common knowledge for the entire staff.
call center
The place where the majority of customer service calls and contact takes place (commonly referred to as the call or contact center).
cannibalization
The potential reduction in demand for existing products when a new service is introduced.
CAN-SPAM act
Legislation enacted in 2003 that requires unsolicited commercial e-mail messages to be labeled and to include opt-out instructions and the sender’s physical address. CAN-SPAM stands for Controlling the Assault of Non-Solicited Pornography and Marketing,
captive finance company
A credit-granting subsidiary whose principal business is to finance consumer purchases of the parent company’s products, such as automobiles or major appliances,
captive financing
Financing offered by the manufacturer and related entities directly through the dealer.
channel of distribution
The means through which goods and services move from seller to buyer. See also marketing channel.
Check 21
Legislation enacted in 2003 that establishes a uniform understanding of and process for electronic check clearing.
check imaging
(See image processing.)
collateral material
Literature in the form of brochures, counter cards, and posters that describes the range of available products to a customer or prospective customer.
Community Reinvestment Act (CRA)
A 1977 law requiring financial institutions to meet the
credit needs of low- and moderate-income segments of communities they serve, to inform the target market of their availability, and to report on the extent of their investment in the areas they serve. A 1989 policy statement expanded the way regulators evaluate banks’ CRA programs,
community relations
Active participation in and financial support of community projects by an organization for the purpose of fostering good will and gaining public esteem.
competitor
A rival business selling identical or similar products in the same market.
compliance
The interpretation and application of banking laws, regulations, and guidelines.