Exam 3 (Chpts 10-14) Flashcards
price
the assignment of value, or the amount the consumer must exchange to receive the offering
Bitcoin
The most popular and fastest growing digital currency
market share
The percentage of a market (defined in terms of either sales units or revenue) accounted for by a specific firm, product lines, or brands.
prestige products
Products that have a high price and that appeal to status-conscious consumers
price elasticity of demand
the percentage change in unit sales that results from a percentage change in price
elastic demand
Demand in which changes in price have large effects on the amount demanded
inelastic demand
Demand in which changes in price have little or no effect on the amount demanded
cross-elasticity of demand
when changes in the price of one product affect the demand for another item
variable costs
The costs of production (raw and processed materials, parts, and labor) that are tied to and vary, depending on the number of units produced.
fixed costs
Costs of production that do not change with the number of units produced
average fixed cost
the fixed cost per unit produced
total costs
the total of the fixed costs and the variable costs for a set number of units produced
break-even analysis
a method for determining the number of units that a firm must produce and sell at a given price to cover all its costs
break-even point
the point at which the total revenue and total costs are equal and beyond which the company makes a profit; below that point, the firm will suffer a loss
contribution per unit
the difference between the price the firm charges for a product and the variable costs
markup
An amount added to the cost of a product to create the price at which a channel member will sell the product
gross margin
The markup amount added to the cost of a product to cover the fixed costs of the retailer or wholesaler and leave an amount for a profit.
retailer margin
The margin added to the cost of a product by a retailer
wholesaler margin
The margin added to the cost of a product by a retailer
list price or manufacturer’s suggested retail price (MSRP)
The price that the manufacturer sets as the appropriate pra\ice for the end consumer to pay
vertical integration
the combining of manufacturing operations with channels of distribution under a single ownership to reduce costs and increase profits
shopping for control
Consumers, facing a world with terrorism and political unrest, value products and services that provide some degree of control, such as installing smart home technology or moving to gated communities.
cost-plus pricing
A method of setting prices in which the seller totals all the costs for the product and then adds an amount to arrive at the selling price.
keystoning
retail pricing strategy in which the retailer doubles the cost of the item (100 percent markup) to determine the price
demand-based pricing
a price-setting method based on estimates of demand at different prices
target costing
A process in which firms identify the quality and functionality needed to satisfy customers and what price they are willing to pay before the product is designed: the product is manufactured only if the firm can control costs to meet the required price
yield management pricing
A practice of charging different prices to different customers to manage capacity while maximizing revenues
price leadership
A price strategy in which one firm first sets its price and other firms in the industry follow with the same or similar prices
value pricing or everyday low pricing (EDLP)
A pricing strategy in which a firm sets prices that provide ultimate value to customers
high/low pricing (also known as promo pricing)
A retail pricing strategy in which the retailer prices merchandise at list price but runs frequent, often weekly, promotions that heavily discount some products.
skimming price
A very high, premium price that a firm charges for its new, highly desirable product
penetration pricing
A pricing strategy in which a firm introduces a new product at a very low price to encourage more customers to purchase it
trial pricing
pricing a new product low for a limited period of time to lower the risk for a customer
price segmentation
the practice of charging different prices to different market segments for the same product
peak load pricing
A pricing plan that sets prices higher during periods with higher demand
surge pricing
A pricing plan that raises prices of a product as demand goes up and lowers it as demand slides
bottom of the pyramid pricing
Innovative pricing that will appeal to consumers with the lowest incomes by brands that wish to get a foothold in bottom of the pyramid countries
two-part pricing
Pricing that requires two separate types of payments to purchase the product
payment pricing
A pricing tactic that breaks up the total price into smaller amounts payable over time.
decoy pricing
A pricing strategy where a seller offers at least three similar products: two have comparable but more expensive prices and one of these two is less attractive to buyers, thus causing more buyers to buy the higher-priced more attractive item.
price bundling
Selling two or more goods or services as a single package for one price
captive pricing
A pricing tactic for two items that must be used together: one item is priced very low, and the firm makes its profit on another, high-margin item essential to the operation of the first item
F.O.B origin pricing (also known as F.OB factory pricing)
A pricing tactic in which the cost of transporting the product from the factory to the customer’s location is the responsibility of the customer.
F.O.B. delivered pricing
A pricing tactic in which the cost of loading and transporting the product to the customer is included in the selling price and is paid by the manufacturer.
uniform delivered pricing
A pricing tactic in which a firm adds a standard shipping charge to the price for all customers regardless of location.
freight absorption pricing
A pricing tactic in which the seller absorbs the total cost of transportation
trade discounts
Discounts off list price of products to members of the channel of distribution who perform various marketing functions.
quantity discounts
A ricing tactic of charging reduced prices for purchases of larger quantities of a product
cash discounts
A discount offered to a customer to entice them to pay their bill quickly
seasonal discounts
Price reductions offered only during certain times of the year
dynamic pricing
A pricing strategy in which the price can easily be adjusted to meet changes in the marketplace
Internet price discrimination
An Internet pricing strategy that charges different prices to different customers for the same product.
Online auctions
E-commerce that allows shoppers to purchase products through online bidding
freemium pricing
A business strategy in which a product in its most basic version is provided free of charge but the company charges money (the premium) for upgraded versions of the product with more features, greater functionality, or greater capacity.
Internal reference price
A set price or a price range in consumers’ minds that they refer to in evaluating a product’s price
price lining
The practice of setting a limited number of different specific prices, called price points, for items in a product line
prestige pricing or premium pricing
A pricing strategy used by luxury goods marketers in which they keep the price artificially high to maintain a favorable image of the product
bait-and-switch
An illegal marketing practice in which an advertised price special is used as bait to get customers into the store with the intention of switching them to a higher-priced item
loss-leader pricing
The pricing policy of setting prices very low or even below cost to attract customers into a store.
unfair sales acts
State laws that prohibit suppliers from selling products below cost to protect small businesses from larger competitors
price-fixing
The collaboration of two or more firms in setting prices, usually to keep prices high
predatory pricing
An illegal pricing strategy in which a company sets a very low price for the purpose of driving competitors out of business
physical distribution
The activities that move finished goods from manufactures to final customers, including order processing, warehousing, materials handling, transportation, and inventory control
direct channel
A channel of distribution in which a manufacturer of a product or creator of a service distributes directly to the end customer.
channel intermediaries
firms or individuals such as wholesalers, agents, brokers, or retailers who help move a product from the producer to the consumer or business user. An older term for intermediaries is middlemen.
breaking bulk
Dividing larger quantities of goods into smaller lots in order to meet the needs of buyers.
create assortments
To provide a variety of products in one location to meet the needs of buyers
transportation and storage
Occurs when retailers and other channel members move the goods from the production point to other locations where they can hold them until consumers want them
facilitating functions
Functions of channel intermediaries that make the purchase process easier for customers and manufacturers.
risk-taking functions
The chance retailers take on the loss of a product when they buy a product from a manufacturer because the product sits on the self because no customers want it.
communication and transaction functions
Happens when channel members develop and execute both promotional and other types of communication among members of the channel
disintermediation (of the channel of distribution)
The elimination of some layers of the channel of distribution to cut costs and improve the efficiency of the channel
knowledge management
A comprehensive approach to collecting, organizing, storing, and retrieving a firm’s information assets.
intranet
An internal corporate communication network that uses Internet technology to link company departments, employees, and databases
online distribution piracy
The theft and unauthorized repurposing of intellectual property via the Internet
wholesaling intermediaries
Firms that handle the flow of products from the manufacturer to the retailer or business user
Independent intermediaries
Channel intermediaries that are not controlled by any manufacturer but instead do business with many different manufacturers and many different customers
merchant wholesalers
Intermediaries that buy goods from manufacturers (take title to them) and sell to retailers and other B2B customers
take title
To accept legal ownership of a product and assume the accompanying rights and responsibilities of ownership.
full-service merchant wholesalers
Wholesalers that provide a wide range of services for their customers, including delivery, credit, product-use assistance, repairs, advertising, and other promotional support
limited-service merchant wholesalers
Wholesalers that provide fewer services for their customers
merchandise agents or brokers
Channel intermediaries that provide services in exchanges for commissions but never take title to the product
channel levels
The number of distinct categories of intermediaries that make up a channel of distribution
dual or multiple distribution systems
A system where producers, dealers, wholesalers, retailers, and customers participate in more than one type of channel
Hybrid marketing system
A marketing system that uses a number of different channels and communication methods to serve a target market
subscription boxes
A new business model for distribution that supplies surprises by sending out a box each month filled with items you never knew you wanted but you just have to have
slotting allowance
A fee paid in exchange for agreeing to place a manufacturer’s products on a retailer’s valuable shelf space
product diversion
The distribution of a product through one or more channels not authorized for use by the manufacturer of the product
diverter
An entity that facilitates the distribution of a product through one or more channels not authorized for use by the manufacturer of the product.
distribution planning
The process of developing distribution objectives, evaluating internal and external environmental influences on distribution, and choosing a distribution strategy.
distribution intensity
The number of intermediaries at each level of the channel
conventional marketing system
A multiple-level distribution channel in which channel members work independently of one another
vertical marketing system (VMS)
A channel of distribution in which there is formal cooperation among members at the manufacturing, wholesaling, and retailing levels.
administered VMS
A vertical marketing system in which channel members remain independent but voluntarily work together because of the power of a single channel member
corporate VMS
A vertical marketing system in which a single firm owns manufacturing, wholesaling, and retailing operations
contractual VMS
A vertical marketing system in which cooperation is enforced by contracts (legal agreements) that spell out each member’s rights and responsibilities and how they will cooperate
Retailer cooperative
A group of retailers that establishes a wholesaling operation to help them compete more effectively with the large chains.
franchise organizations
A contractual vertical marketing system that includes a franchiser (a manufacturer or a service provider) who allows an entrepreneur (the Franchisee) to use the franchise name and marketing plan for a fee
horizontal marketing system
An arrangement within a channel of distribution in which two or more firms at the same channel level work together for common purpose
intensive distribution
Selling a product through all suitable wholesalers or retailers that are willing to stock and sell the product
exclusive distribution
Selling a product only through a single outlet in a particular region
gray market
A distribution channel in which a product’s sale to a customer may be technically legal, but is at a minimum considered inappropriate by the manufacturer of the related product. Gray markets often emerge around high-end luxury goods sold through exclusive distribution
selective distribution
Distribution using fewer outlets than intensive distribution buy more than exclusive distribution
channel leader or channel captain
The dominant firm that controls the channel
channel power
The ability of one channel member to influence, control, and lead the entire channel based on one or more sources of power
channel cooperation
Occurs when producers, wholesalers, and retailers depend on one another for success
Channel conflict
Incompatible goals, poor communication, and disagreement over roles, responsibilities, and functions among firms at different levels of the same distribution channel that may threaten a manufacturer’s distribution strategy.
logistics
The process of designing, managing and improving the movement of products through the supply chain. Logistics includes purchasing, manufacturing, storage, and transport
reverse logistics
Includes product returns, recycling and material reuse, and waste disposal.
order processing
The series of activities that occurs between the time an order comes into the organization and the time a product goes out the door.
enterprise resource planning (ERP) systems
A software system that integrates information from across the entire company, including finance, order fulfillment, manufacturing, and transportation, and then facilitates sharing of the data throughout the firm.
warehousing
Storing goods in anticipation of sale or transfer to another members of the channel of distribution
distribution center
A warehouse that stores goods for short periods of time and that provides other functions, such as breaking bulk
materials handling
The moving of products into, within, and out of warehouses
transportation
The mode by which products move among channel members
Inventory control
Activities to ensure that goods are always available to meet customers’ demands
radio frequency identification (RFID)
Product tags with tiny chips containing information about the item’s content, origin, and destination
level loading
A manufacturing approach intended to balance the inventory holding capabilities and production capacity constraints of a manufacturer for a particular product through the implementation of a consistent production schedule employed both during and beyond periods of peak demand.
stock-outs
Zero-inventory situations resulting in lost sales and customer dissatisfaction
just in time (JIT)
Inventory management and purchasing processes that manufacturers and resellers use to reduce inventory to very low levels and ensure that deliveries from suppliers arrive only when needed.
supply chain
All the actives necessary to turn raw materials into a good or service and put it in the hands of the consumer or business customer
Inventory turnover or inventory turns
The number of times a firm’s inventory completely cycles through during a defined time frame.
supply chain management
The management of flows among firms in the supply chain to maximize total profitability
insourcing
A practice in which a company contracts with a specialist firm to handle all of part of its supply chain operations
retailing
The final stop in the distribution channel in which organizations sell goods and services to consumers for their personal use
wheel-of-retailing hypothesis
A theory that explains how retail firms change, becoming more upscale s they go through their life cycle
experiential merchandising
Tactic whose intent is to convert shopping from a passive activity into a more interactive one, by better engaging the customer.
destination retailer
Firm that consumers view as distinctive enough to become loyal to it. Consumers go out of their way to shop there
omnichannel (omni-channel) marketing
A retail strategy that provides a seamless shopping experience, whether the customer is shopping online from a desktop or mobile device, by telephone or in a brick-and-mortar store
point-of-sale (POS) systems
Retail computer systems that collect sales data and are hooked directly into the store’s inventory-control system.
perpetual inventory unit control system
Retail computer system that keeps a running total on sales, returns, transfers to other stores, and so on.
Automatic reordering system
Retail reordering system that is automatically activated when inventories reach a certain level
Beacon marketing
A retail marketing strategy in which beacon devices are place strategically throughout a store and emit a Bluetooth signal to communicate with shopper’s smartphones as they browse the aisles of the store.
Digital wallets
The use of Bluetooth technology that connects with customer smartphones and allows customers to pay for items without cash or even swiping a credit card
experiential shoppers
Shoppers who shop because it satisfies their experiential needs, that is, their desire for fun.
retailtainment
The use of retail strategies that enhance the shopping experience and create excitement, impulse purchases, and an emotional connection with the brand
shrinkage
Losses experienced by retailers as a result of shoplifting, employee theft, and damage to merchandise.
Organized retail crime (ORC)
Retail shoplifting by organized gangs of thieves that get away with thousands of dollars in goods in a single day.
Retail borrowing
The consumer practice of purchasing a product with the intent to return the nondefective merchandise for a refund after it has fulfilled the purpose for which it was purchased
Customer profiling
The act of tailoring the level of customer service based on a customer’s perceived ability to pay
Service retailer
Organization that offers consumers services rather than merchandise. Examples include banks, hospitals, health spas, doctors, legal clinics, entertainment firms, and universities.
Merchandise mix
The total set of all products offered for sale by a retailer, including all product lines sold to all consumer groups
Combination stores
Retailers that offer consumers food and general merchandise in the same store
Supercenters
Large combination stores that combine economy supermarkets with other lower-priced merchandise
Merchandise assortment
The range of products a store sells
Merchandise breadth
The number of different product lines available
Merchandise depth
The variety of choices available for each specific product line.
Convenience Stores
Neighborhood retailers that carry a limited number of frequently purchased items and cater to consumers willing to pay a premium for the ease of buying close to home.
Supermarkets
Food stores that carry a wide selection of edibles and related products
Box stores
Food stores that have a limited selection of items, few brands per item, and few refrigerated items
Specialty stores
Retailers that carry onl y a few product lines but offer good selection within the lines that they sell
Category killer
A very large specialty store that carries a vast selection of products in its category.
leased departments
Departments within a larger retail store that an outside firm rents
variety stores
Stores that carry a variety of inexpensive items
general merchandise discount stores
REtailers that offer a broad assortment of items at low prices with minimal service
off-price retailers
Retailers that buy excess merchandise from well-known manufactures and pass the savings on to customers
warehouse club
Discount retailers that charge a modest membership fee to consumers who buy a broad assortment of food and nonfood items in bulk and in a warehouse environment
Factory outlet store
A discount retailer, owned by a manufacturer, that sells off defective merchandise and excess inventory
Department stores
Retailers that sell a broad range of items and offer a good selection within each product line
Bifurcated retailing
With the decline of middle-of-the-market retailing, both mass merchandising and niche retailing dominate the retail market
Hypermarkets
REtailers with the characteristics of both warehouse stores and supermarkets; hypermarkets are several times larger than other stores and offer virtually everything from grocery items to electronics
pop-up stores
Retail stores, such as Halloween costume stores, that “pop up” one day and then disappear after a period of one day to a few months
Nonstore retailing
Any method used to complete an exchange with a product end-user that does not require a customer visit to a store
B2C e-commerce
Online exchanges between companies and individual consumers
M-commerce
Promotional and other e-commerce activities transmitted over mobile phones and other mobile devices, such as smartphones and personal digital assistance
Virtual experiential marketing
An online marketing strategy that uses enhancements, including colors, graphics, layout and design, interactive videos, contests, games, and giveaways, to engage experiential shoppers online
shopping cart abandonment
Occurs when e-commerce customers leave an e-commerce site with unpurchased items in their cart
Direct selling
An interactive sales process in which a salesperson presents a product to one individual or a small group, takes orders, and delivers the merchandise
Green River Ordinances
Community regulations that prohibit door-to-door selling unless prior permission is given by the household
party plan system
A sales technique that relies heavily on people getting caught up in the “group spirit,” buying things they would not normally buy if they were alone
multilevel or network marketing
A system in which a master distributor recruits other people to become distributors, sells the company’s product to the recruits, and receives a commission on all the merchandise sold by the people recruited
pyramid schemes
An illegal sales technique that promises consumers or investors large profits from recruiting others to join the program rather than from any real investment or sale of goods to the public
intangibles
Experience-based products
services
Intangible products that are exchanged directly between the producer and the customer
intangibility
The characteristic of a service that means customers can’t see, touch, or smell good service
Perishability
The characteristic of a service that makes it impossible to store for later sale or consumption
Capacity management
The process by which organizations adjust their offerings in an attempt to match demand
variability
The characteristic of a service that means that even the same service performed by the same individual for the same customer can vary
Inseparability
The characteristic of a service that means that it is impossible to separate the production of a service from the consumption of that service
Service encounter
The actual interaction between the customer and the service provide
Disintermediation
The elimination of some layers of the channel of distribution to cut costs and improve the efficiency of the channel
servicescape
The actual physical facility where the service is performed, delivered, and consumed
SERVQUAL
A multiple-item scale used to measure service quality across dimensions of tangibles, reliability, responsiveness, assurance, and empathy
gap analysis
A marketing research method that measures the difference between a customer’s expectation of service quality and what actually occurred.
Place marketing
Marketing activities that seek to attract new businesses, residents, or visitors to a town, state, country, or some other site
idea marketing
Marketing activities that seek to gain market share for a concept, philosophy, belief, or issue by using elements of the marketing mix to create or change a targe market’s attitude or behavior
Integrated marketing communication (IMC)
A strategic business process that marketers use to plan, develop, execute, and evaluate coordinated, measurable, persuasive brand communication programs over time to targeted audiences.
multichannel promotion strategy
A marketing communication strategy where they combine traditional advertising, sales promotion, and public relations activities with online buzz-building activities
Word-of-mouth communication
When consumers provide information about products to other consumers
communication model
The process whereby meaning is transferred from a source to a receiver
source
An organization or individual that sends a message
encoding
The process of translating an idea into a form of communication that will convey meaning.
message
The communication in physical form that goes from a sender to a receiver
medium
A communication vehicle through which a message is transmitted to a target audience
receiver
The organization or individual that intercepts and interprets the message
decoding
The process by which a receiver assigns meaning to the message
noise
Anything that interferes with effective communication
Feedback
Receivers’ reactions to the message
promotion mix
The communication elements that the marketer controls
Mass communication
Relates to TV, radio, magazines, and newspapers
Hierarchy of effects
A series of steps prospective customers move through, from initial awareness of a product to brand loyalty
top-down budgeting techniques
Allocation of the promotion budget based on management’s determination of the total amount to be devoted to marketing communication
percentage-of-sales method
A method for promotion budgeting that is baed on a certain percentage of either last year’s sales or estimates of the present year’s sales.
competitive-parity method
A promotion budgeting method in which an organization matches whatever competitors are spending
bottom-up budgeting techniques
Allocation of the promotion budget based on identifying promotion goals and allocating enough money to accomplish them
objective-task method
A promotion budgeting method in which an organization first defines the specific communication goals it hopes to achieve and then tries to calculate what kind of promotion efforts it will take to meet these goals
Push strategy
The company tries to move its products through the channel by convincing channel members to offer them
pull strategy
The company tries to move its products through the channel by building desire for the products among consumers, thus convincing retailers to respond to this demand by tocking these items
advertising
Nonpersonal communication from an identified sponsor using the mass media
TV everywhere (also known as authenticated streaming)
The use of an Internet-enabled device, like a tablet or smartphone, to stream content from a cable or satellite provider
product advertising
Advertising messages that focus on a specific good or service
Institutional advertising
Advertising messages that promote the activities, personality, or point of view of an organization or company
Corporate advertising
Advertising that promotes the company as a whole instead of a firm’s individual products
advocacy advertising
A type of public service advertising where an organization seeks to influence public opinion on an issue because it has some stake in the outcome
public service advertisements (PSAs)
Advertising run by the media for not-for-profit organizations or to champion a particular cause without charge
Retail and local advertising
Advertising that informs consumers about store hours, location, and products that are available or on sale
Advertising campaign
A coordinated, comprehensive plan that carries out promotion objectives and results in a series of advertisements placed in media over a period of time
limited-service agency
An agency that provides one or more specialized services, such as media buying or creative development
full-service agency
An agency that provides one or more specialized services, such as media buying or creative development
account executive
A member of the account management department who supervises the day-to-day activities of the account and is the primary liaison between the agency and the client
Account planner
A member of the account management department who combines research and account strategy to act as the voice of the consumer in creating effective advertising
creating services
The agency people (creative director, copywriters, and art director) who dream up and produce the ads.
research and marketing services
The advertising agency department that collects and analyzes information that will help account executives develop a sensible strategy and assist creatives in getting consumer reactions to different versions of ads.
Media planners
Agency personnel who determine which communication vehicles are the most effective and efficient to deliver the ad.
do-it-yourself (DIY) ads
Product ads that are created by consumers
corrective advertising
Advertising that clarifies or qualifies previous deceptive advertising claims.
puffery
Claims made in advertising of product superiority that cannot be proven true or untrue.
greenwashing
A practice in which companies promote their products as environmentally friendly when in truth the brand provides little ecological benefit
Creative strategy
The process that turns a concept into an advertisement
Creative brief
A guideline or blueprint for the marketing communication program that guides the creative process
Advertising appeal
The central idea or theme of an advertising message
Unique selling proposition (USP)
An advertising appeal that focuses on one clear reason why a particular product is superior
reminder advertising
Advertising aimed at keeping the name of a brand in people’s minds to be sure consumers purchase the product as necessary
Teaser ad or mystery ad
Ads that generate curiosity and interest in a to-be-introduced product by drawing attention to an upcoming ad campaign without mentioning the product
execution format
The basic structure of the message, such as comparison, demonstration, testimonial, slice of life, and lifestyle
comparative advertising
Advertising that compares one brand with a second named brand
slice of life advertising
A slice of life ad presents a (dramatized) scene from everyday life
lifestyle advertising
Lifestyle ads show a person(s), attractive to the target market, in an appealing setting with the advertised product as “part of the scene,” implying that the person who buys it will attain the lifestyle
tonality
The mood or attitude the message conveys (straightforward, humor, dramatic, romantic, sexy, and apprehension/fear)
fear appeals
Advertisements that highlight the negative consequences of not using a product by either focusing on physical harm or social disapproval
jingles
Original words and music written specifically or advertising executions
slogans
Simple, memorable linguistic devices linked to a brand
pretesting
A research method that seeks to minimize mistakes by getting consumer reactions to ad messages before they appear in the media
media planning
The process of developing media objectives, strategies, and tactics for use in an advertising campaign
posttesting
Research conducted on consumers’ responses to actual advertising messages they have seen or heard
Unaided recall
A research technique conducted by telephone survey or personal interview that asks whether a person remembers seeing an ad during q specified period without giving the person the name of the brand
Aided recall
A research technique that uses clues to prompt answers from people about advertisements they might have seen
Attitudinal measures
A research technique that probes a consumer’s beliefs or feelings about a product before and after being exposed to messages about it
Branded entertainment (also known as product placements or embedded marketing)
A form of advertising in which marketers integrate products into entertainment venues
Advergaming
Brand placements in video games
Native advertising
An execution strategy that mimics the content of the website where the message appears
Support media
Media such as directories or out-of-home media that may be used to reach people who are not reached by mass-media advertising
Out-of-home media
Communication media that reach people in public places
Digital signage
Out-of-home media that transmit messages in public places, such as doctors offices and airports, where certain types of people congregate
Place-based media
Advertising media that transmit messages in public places, such as doctors’ offices and airports, where certain types of people congregate
Digital media
Media that are digital rather than analog, including websites, mobile or cellular phones, and digital videos, such as YouTube.
Owned media
Internet sites, such as websites, blogs, Facebook, and twitter accounts, that are owned by an advertiser
Paid media
Internet media, such as display ads, sponsorships, and paid key word searches, that are paid for by an advertiser
Earned media
Word-of-mouth or buzz using social media where the advertiser has no control
Banners
Internet advertising in the form of rectangular graphics at the top or bottom of web pages
Buttons
Small banner-type advertisements that can be placed anywhere on a web page
Pop-up ad
An advertisement that appears on the screen while a web page loads or after it has loaded
Spam
The use of electronic media to send unsolicited messages in bulk
Permission marketing
Email advertising in which online consumers have the opportunity to accept or refuse the unsolicited e-mail
Search engines
Internet programs that search for documents with specified key words
Search marketing
Marketing strategies that involve the use of internet search engines
Ad fraud
The use of automated browsers to falsify the number of views or click-through a the advertisers must pay for
Ad blocking
The use of powerful ad-blocking software created to stop ad fraud by stripping ads from the website at the network level
Mobile hijacking
The use of automated browsers to falsify the number of views or click-through the advertisers must pay for
Search engine marketing (SEM)
Search marketing strategies in which marketers pay for ads or better positioning
Sponsored search sales
Paid ads that appear at the top or beside the internet search engine results
Mobile advertising
A form of advertising that is communicated to the consumer via a handset
Text message advertising
Delivering ads to consumers as mobile phone text messages
Monetize
The act of turning an asset into money. Websites and mobile apps monetize their content through advertisers
In-app advertising
To monetize free mobile phone apps, developers use advertising to create revenue and to engage the consumer
QR code advertising
Qr (quick response) code advertising uses smartphone GPS technology to deliver ads and other information to consumers in stores and in other locations
Video sharing
Uploading video recordings on to internet sites such as YouTube so that thousands or even millions of other internet users can see them
Vlogs
Video recordings shared on the internet
Media schedule
The plan that specifies the exact media to use and when to use it
Reach
The percentage of the target market that will be exposed to the media vehicle
frequency
The average number of times a person in the target group will be exposed to the message
gross rating points (GRPs)
A measure used for comparing the effectiveness of different media vehicles: average reach x frequency
cost per thousand (CPM)
A measure used to compare the relative cost-effectiveness of different media vehicles that have different exposure rates: the cost to deliver a message to 1,000 people or homes
sales promotion
Programs designed to build interest in or encourage purchase of a product during a specified period
rebates
Sales promotions that allow the customer to recover part of the product’s cost from the manufacturer.
frequency programs
Consumer sales promotion programs that offer a discount or free product for multiple purchases over time; also referred to as loyalty or continuity programs
premiums
Items offered free to people who have purchased a product
product sampling
Distributing free trial-size versions of a product to consumers
trade sales promotions
Promotions that focus on members of the “trade,” which include distribution channel members, such as retail salespeople or wholesale distributors, that a firm must work with in order to sell its products
merchandising allowance
Reimburses the retailer for in-store support of the product
case allowance
A discount to the retailer or wholesaler based on the volume of product ordered
co-op advertising
A sales promotion where the manufacturer and the retailer share the cost
trade shows
events at which many companies set up elaborate exhibits to show the products, give away samples, distribute product literature, and troll for new business contacts
promotional products
Goodies such as mugs, T-shirts, and magnets given away to build awareness for a sponsor. Some freebies are distributed directly to consumers and business customers; others are intended for channel partners, such as retailers and vendors.
Point of purchase (POP) displays
In-store displays and signs
push money
A bonus paid by a manufacturer to a salesperson, customer, or distributor for selling its product
groundswell
A social trend in which people use technology to get the things they need from each other rather than from traditional institutions like corporations
social media
Internet-based platforms that allow users to create their own content and share it with others who access these sites
social networks
Online platforms that allow a user to represent himself or herself via a profile on a website and provide and receive links to other members of the network to share input about common insterests
brand community
A group of social network users who share an attachment to a product or brand, interact with each other and share information about the brand
A free microblogging service that lets users pst short text messages with a maximum of 140 characters
virtual world
Online, highly engaging digital environments where avatars live and interact with other avatars in real time
avatars
Graphic representations of users of virtual worlds
virtual goods
Digital products consumers buy for use in online contexts
product review sites
Social media sites that enable people to post stories about their experiences with goods and services.
location-based social networks
Networks that integrate sophisticated GPS technology that enables users to alert friends of their exact whereabouts via their mobile phones.
augmented reality (AR)
A view of physical, real-world that is enhanced or altered by computer-generated sounds, videos, graphics, or GPS data
direct marketing
Any direct communication to a consumer or business recipient designed to generate a response in the form of an order, a request for further information, or visit to a store or other place of business for purchase of a product.
catalog
A collection of products offered for sale in book form, usually consisting of product descriptions accompanied by photos of the items.
direct mail
A brochure or pamphlet that offers a specific good or service at one point in time
telemarketing
The use of the telephone to sell directly to consumers and business customers
direct-resonse advertising
A direct marketing approach that allows the consumer to respond to a message by immediately contacting the provider to ask questions or order the product
direct-response TV (DRTV)
Advertising on TV that seeks a direct response, including short commercials of less than two minutes, 30-minute or longer infomercials, and home shopping networks.
infomercials
Half-hour or hour-long commercials that resemble a talk show but actually are sales pitches
m-commerce
Promotional and other e-commerce activities transmitted over mobile phones and other mobile devices, such a smartphones and personal digital assistants
personal selling
Marketing communication by which a company representative interacts directly with a customer or prospective customer to communicate about a good or service.
partner relationship management (PRM)
Similar to a CRM, the PRM system allows both selling and buying firms to share some of their information.
voice-over Internet protocol (VoIP)
Communication systems that use data networks to carry voice calls
telecommute
Working with fellow employees from a distant location using Internet communication technology such as VoIP.
virtual office
The use of Internet technology to work and participate from a distant physical office
order taker
A salesperson whose primary function is to facilitate transactions that the customer initiates
technical specialist
A sales support person with a high level of technical expertise who assists in product demonstrations
missionary salesperson
A salesperson who promotes the firm and tries to stimulate demand for a product but does not actually complete a sale.
new-business salesperson
The person responsible for finding new customers and calling on them to present the company’s products
order getter
A salesperson who works to develop long-term relationships with a particular customers or to generate new sales
team selling
The sales function when handled by a team that may consist of a salesperson, a technical specialist, and others
key account
Very large customer organizations with the potential for providing significant sales revenue
cross-functional team
A form on selling team where the team includes individuals from various areas of the firm
multilevel selling
a form of team selling which the team consists of company personnel from various managerial levels, each calling on their counterpart in the customer organization
transactional selling
A form of personal selling that focuses on making an immediate sale with little or no attempt to develop a relationship with the customer
relationship selling
A form of personal selling that involves securing, developing, and maintaining long-term relationships with profitable customers
creative selling process
The process of seeking out potential customers, analyzing needs, determining how product attributes might provide benefits for the customer, and the communicating that information
prospecting
A part of the selling process that includes identifying and developing a list of potential or prospective customers
preapproach
A part of the selling process that includes developing information about prospective customers and planning the sales interview
approach
The first step of the actual sales presentation in which the salesperson tries to learn about the customer’s needs, create a good impression, and builds rapport
sales presentation
The part of the selling process in which the salesperson directly communicates the value proposition to the customer and invites two-way communication
close
The stage of the selling process in which the salesperson actually asks the customer to buy the product
follow-up
Activities after the sale that provide important services to customers
input measures
Effort that go into selling, such as the number and type of sales calls, expense account management, and a variety of non-selling activities, such as customer follow-up work and client service
output measures
The results of the salesperson’s efforts
public relations (PR)
Communication function that seeks to build good relationships with an organization’s publics, including consumers, stockholders, and legislators
publicity
Unpaid communication about an organization that appears in the mass media
crisis management
The process of managing a company’s reputation when some negative event threatens the organization’s image
public relations campaign
A coordinated effort to communicate with one or more of the firm’s publics
press release
Information that an organization distributes to the media intended to win publicity
video news release (VNR)
Similar to a press release, an organization sends a report to the media in a film format
internal PR
PR activites aimed at employees of an organization
Investor relations
PR activities such as annual and quarterly reports aimed at a firm’s investors
lobbying
talking with and providing information to government officials to influence their activities relating to an organization
speech writing
Writing a speech on a topic for a company executive to deliver
corporate identity
Materials such as logos, brochures, building design, and stationery that communicate an image of the organization
media relations
A PR activity aimed at developing close relationships with the media
sponsorships
PR activities through which companies provide financial support to help fund an event in return for publicized recognition of the company’s contribution
special events
Activities- from a visit by foreign investors to a company picnic- that are planned and implemented by a PR department
brand ambassadors or brand evangelists
Loyal customers of a brand recruited to communicate and be salespeople with other consumers for a brand they care a great deal about
guerrilla marketing
Marketing activity in which a firm “ambushes” consumers with promotional content in places they are not expecting to encounter this kind of activity
ambient advertising
Advertising placed where advertising isn’t normally or hasn’t ever been seen
buzz
Word-of-mouth communication that customers view as authentic
buzz marketing
Marketing activities designed to create conversation, excitement, and enthusiasm, that is, buzz, about a brand
tryvertising
Advertising by sampling that is designed to create buzz about a product
F-commerce
E-commerce that takes place on Facebook
brand polarization
The gap between good buzz and bad buzz
viral marketing
Marketing activities that aim to increase brand awareness or sales by consumers passing a message along to others consumers
sock puppeting
An practice where a company executive or other biased source poses as someone else to plug a product in social media
paid influencer programs
Another form of sock puppeting in which bloggers are paid or rewarded in some way for attempting to start online conversations about a brand
