FINAL Flashcards
1
Q
Promotion
A
o Communicating information b/w seller and potential buyer or others in the channel to influence attitudes and behavior.
2
Q
Personal Selling
A
Direct spoken communication b/w sellers and potential customers, usually in person but sometimes over the telephone or even via a video conference over the Internet.
3
Q
Mass Selling
A
o Communicating w/ large numbers of potential customers at the same time.
4
Q
Advertising
A
o Any paid form of non-personal presentation of ideas, goods, or services by an identified sponsor.
5
Q
Publicity
A
o Any unpaid form of non-personal presentation of ideas, goods, or services.
6
Q
Sales Promotion
A
o Those promotion activities—other than advertising, publicity, and personal selling—that stimulate interest, trial, or purchase by final customers or others in the channel.
7
Q
Sales Managers
A
o Managers concerned w/ managing personal selling.
8
Q
Advertising Managers
A
o Managers of their company’s mass-selling effort in television, newspapers, magazines, and other media.
9
Q
Sales Promotion Managers
A
o Managers of their company’s sales promotion effort.
10
Q
Public Relations
A
o Communication w/ noncustomers—including labor, public interest groups, stockholders, and the government.
11
Q
Integrated Marketing Communications
A
o The intentional coordination of every communication from a firm to a target customer to convey a consistent and complete message.
12
Q
AIDA Model
A
o Consists of four promotion jobs: ♣ To get attention ♣ To hold interest ♣ To arouse desire ♣ To obtain action
13
Q
Communication Process
A
o A source trying to reach a receiver w/ a message.
14
Q
Source
A
o The sender of a message.
15
Q
Receiver
A
o The target of a message in the communication process, usually a potential customer.
16
Q
Noise
A
o Any distraction that reduces the effectiveness of the communication process.
17
Q
Encoding
A
o The source in the communication process deciding what it wants to say and translating it into words or symbols that will have the same meaning to the receiver.
18
Q
Decoding
A
o The receiver in the communication process translating the message.
19
Q
Message Channel
A
o The carrier of the message.
20
Q
Pushing
A
o Using normal promotion effort—personal selling, advertising, and sales promotion—to help sell the whole marketing mix to possible channel members.
21
Q
Pulling
A
o Using promotion to get consumers to ask intermediaries for the product.
22
Q
Adoption Curve
A
o Shows when different groups accept ideas.
23
Q
Innovators
A
o The first group to adopt new products.
24
Q
Early Adopters
A
o The second group in the adoption curve to adopt a new product; these people are usually well respected by their peers and often are opinion leaders.
25
Early Majority
o A group in the adoption curve that avoids risk and waits to consider a new idea until many early adopters try and like it.
26
Late Majority
o A group of adopters who are cautious about new ideas.
27
Laggards
o Prefer to do things the way they have been done in the past and are very suspicious of new ideas; sometimes called non-adopters.
28
Primary Demand
o Demand for the general product idea, not just the company’s own brand.
29
Selective Demand
o Demand for a company’s own brand rather than a product category.
30
Task Method
o An approach to developing a budget—basing the budget on the job to be done.
31
Basic Sales Tasks
o Order-getting, order-taking, and supporting.
32
Order Getters
o Salespeople concerned w/ establishing relationships w/ new customers and developing new business.
33
Order Getting
o Seeking possible buyers w/ a well-organized sales presentation designed to sell a good, service, or idea.
34
Order Takers
o Salespeople who sell to regular or established customers, complete most sales transactions, and maintain relationships w/ their customers.
35
Order Taking
o The routine completion of sales made regularly to target customers.
36
Support Salespeople
o Salespeople who help the order-oriented salespeople but don’t try to get orders themselves.
37
Missionary Salespeople
o Supporting salespeople who work for producers by calling on intermediaries and their customers.
38
Technical Specialists
o Supporting salespeople who provide technical assistance to order-oriented salespeople.
39
Customer Service Reps
o Supporting salespeople who work w/ customers to resolve problems that arise w/ a purchase, usually after the purchase has been made.
40
Team Selling
o Different sales reps working together on a specific account
41
Major Accounts Sales Force
o Salespeople who sell directly to large accounts such as major retail chain stores.
42
Telemarketing
o Using the telephone to call on customers or prospects.
43
Sales Territory
o A geographic area that is the responsibility of one salesperson or several working together.
44
Job Description
o A written statement of what a salesperson is expected to do.
45
Sales Quota
o The specific sales or profit objective a salesperson is expected to achieve.
46
Prospecting
o Following all the leads in the target market to identify potential customers.
47
Sales Presentation
o A salesperson’s effort to make a sale or address a customer’s problem.
48
Prepared Sales Presentation
o A memorized presentation that is not adapted to each individual customer.
49
Close
o The salesperson’s request for an order.
50
Consultative Selling Approach
o A type of sales presentation in which the salesperson develops a good understanding of the individual customer’s needs before trying to close the sale.
51
Selling Formula Approach
o A sales presentation that starts w/ a prepared presentation outline—much like the prepared approach—and leads the customer through some logical steps to a final close.
52
Advertising Allowances
o Price reductions to firms in the channel to encourage them to advertise or otherwise promote the firm’s products locally.
53
Cooperative Advertising
o Producers sharing in the cost of ads w/ wholesalers or retailers.
54
Product Advertising
o Advertising that tries to sell a specific product.
55
Institutional Advertising
o Advertising that tries to promote an organization’s image, reputation, or ideas rather than a specific product.
56
Pioneering Advertising
o Advertising that tries to develop primary demand for a product category rather than demand for a specific brand.
57
Competitive Advertising
o Advertising that tries to develop selective demand for a specific brand rather than a product category.
58
Direct Competitive Advertising
o Competitive advertising that aims for immediate buying action.
59
Indirect Competitive Advertising
o Competitive advertising that points out product advantages—to affect future buying decisions.
60
Comparative Advertising
o Advertising that makes specific brand comparisons using actual product names.
61
Reminder Advertising
o Advertising to keep the product’s name before the public.
62
Advertising Media
o The various means by which a message is communicated to its target market.
63
Pay-per-click
o An advertiser pays media costs only when a customer clicks on the ad that leads to the advertiser’s website.
64
Retargeting (behavioral)
o Displays ads to a web user based on sites they have previously visited.
65
Copy Thrust
o What the words and illustrations of an ad should communicate.
66
Advertising Agencies
o Specialists in planning and handling mass-selling details for advertisers.
67
Corrective Advertising
o Ads to correct deceptive advertising.
68
Paid Media
o Messages generated by a brand (or company or nonprofit organization) and communicated through a message channel the brand pays to access.
69
Owned Media
o Promotional messages generated by a brand (or company or nonprofit organization) communicated through a message channel the brand directly controls.
70
Earned Media
o Promotional messages not directly generated by the company or brand, but rather by third parties such as journalists or customers.
71
User-Generated Content
o Any type of communication created by customers for other customers.
♣ Can take many forms
72
Search Engine Optimization (SEO)
o The process of designing a website so that it ranks high in a search engine’s unpaid results.
73
Pass Along
o When one customer makes a recommendation for (or against) a specific brand to another customer.
74
Branded Services
o Valued services a brand provides that are not directly connected to a core product offering.
75
White Paper
o An authoritative report or guide that addresses important issues in an industry and offers solutions.
76
Case Studies
o Success stories about how a company helped another customer.
77
Landing Page
o A customized web page that logically follows from clicking on an organic search result, online advertisement, or other link.
78
Blog
o A regularly updated website, usually managed by one person or a small group and written in an informal, conservational style.
79
Infographic
o A visual image such as a chart or diagram used to represent information or data.
80
Branded Apps
o Sponsored software applications that benefit customers by providing entertainment, solving a problem, and/or saving time.
81
Brand Community
o A group of customers joined around a particular brand or common set of shared interests.
82
Referral Program
o Offers a current customer an incentive for recommending a new customer to a business.
83
Social Media
o Website or software applications that allow users to create and share ideas, information, photos and videos, and interact in a social network.
84
Facebook
o An online social networking website that allows registered users to create profiles, upload photos and videos, and send messages to friends, family, and colleagues.
85
Twitter
o A social networking microblogging service that allows registered users to send out short (140 characters or less) messages called “tweets.”
86
Instagram
o A free online photo and video sharing service geared to mobile phones.
87
Pinterest
o A website that allows registered users to share ideas and images they find online w/ fellow users.
88
LinkedIn
o A social networking website for businesspeople who create personal or company profiles.
89
Marketing Automation Software
o Software that tracks individual customer’s behavior and triggers actions in response to specific customer actions.
90
Price
the amount of money that is charged for “something” of value
91
Target Return Objective
a specific level of profit as an objective
92
Profit Maximization Objective
an objective to get as much profit as possible
93
Sales-Oriented Objective
an objective to get some level of unit sales, dollar sales, or share of market— without referring to profit
94
Status Quo Objectives
“don’t rock the pricing boat” objectives.
95
Nonprice Competition
aggressive action on one or more of the Ps other than price
96
Administered Prices
consciously set prices aimed at reaching the firm’s objectives
97
One-price Policy
offering the same price to all customers who purchase products under essentially the same conditions and in the same quantities
98
Flexible-price Policy
offering the same product and quantities to different customers at different prices
99
Skimming-price Policy
trying to sell the top of the market—the top of the demand curve—at a high price before aiming at more price-sensitive customers
100
Penetration pricing Policy
trying to sell the whole market at one low price
101
Introductory Price Dealing
temporary price cuts to speed new products into a market and get customers to try them
102
Basic List Prices
the prices that final customers or users are normally asked to pay for products
103
Discounts
reductions from list price given by a seller to buyers, who either give up some marketing function or provide the function themselves
104
Quantity Discounts
discounts offered to encourage customers to buy in larger amounts
105
Cumulative Quantity Discounts
reductions in price for larger purchases over a given period, such as a year
106
Noncumulative Quantity Discounts
reductions in price when a customer purchases a larger quantity on an individual order
107
Seasonal Discounts
discounts offered to encourage buyers to buy earlier than present demand requires
108
Net
an invoice term meaning that payment for the face value of the invoice is due immediately—also see cash discounts
109
Cash Discounts
reductions in the price to encourage buyers to pay their bills quickly
110
2/10 net 30
allows a 2% discount off the face value of the invoice if the invoice is paid within 10 days
111
Trade (functional) Discount
a list price reduction given to channel members for the job they are going to do
112
Sale Price
a temporary discount from the list price
113
Everyday low pricing
setting a low list price rather than relying on frequent sales, discounts, or allowances
114
Allowances
reductions in price given to final consumers, customers, or channel members for doing something or accepting less of something
115
Ad Allowances
price reductions to firms in the channel to encourage them to advertise or otherwise promote the firm’s products locally
116
Stocking Allowances
allowances given to wholesalers or retailers to get shelf space for a product— sometimes called slotting allowances
117
Push Money (or prize money) Allowances
allowances (sometimes called PMs or spiffs) given to retailers by manufacturers or wholesalers to pass on to the retailers’ salesclerks for aggressively selling certain items
118
Trade-In Allowance
a price reduction given for used products when similar new products are bought
119
Rebates
refunds to consumers after a purchase
120
F.O.B.
a transportation term meaning free on board some vehicle at some point
121
Zone Pricing
making an average freight charge to all buyers within specific geographic areas
122
Uniform Delivered Pricing
making an average freight charge to all buyers
123
Freight Absorption Pricing
absorbing freight cost so that a firm’s delivered price meets the nearest competitor’s
124
Value Pricing
setting a fair price level for a marketing mix that really gives the target market superior customer value
125
Unfair Trade Practice Acts
put a lower limit on prices, especially at the wholesale and retail levels
126
Dumping
pricing a product sold in a foreign market below the cost of producing it or at a price lower than in its domestic market
127
Phony List Prices
misleading prices that customers are shown to suggest that the price they are to pay has been discounted from list
128
Wheeler Lea Amendment
law that bans unfair or deceptive acts in commerce
129
Price Fixing
competitors illegally getting together to raise, lower, or stabilize prices
130
Robinson-Patman Act
1936 law that makes illegal any price discrimination if it injures competition
131
Price Discrimination
injuring competition by selling the same products to different buyers at different prices
132
Markup
the percentage of selling price that is added to the cost to get the selling price.
133
Markup (percent)
the percentage of selling price that is added to the cost to get the selling price.
134
Markup Chain
the sequence of markups firms use at different levels in a channel—determining the price structure in the whole channel
135
Stockturn Rate
the number of times the average inventory is sold during a year
136
Average-cost Pricing
adding a reasonable markup to the average cost of a product
137
Total Fixed Cost
the sum of those costs that are fixed in total— no matter how much is produced
138
Total Variable Cost
the sum of those changing expenses that are closely related to output— such as expenses for parts, wages, packaging materials, outgoing freight, and sales commissions
139
Total Cost
the sum of total fixed and total variable costs
140
Average Cost (per unit)
the total cost divided by the related quantity
141
Average Fixed Cost (per unit)
the total fixed cost divided by the related quantity
142
Average Variable Cost (per unit)
the total variable cost divided by the related quantity
143
Break-even Analysis
an approach to determine whether the firm will be able to break even—that is, cover all its costs— with a particular price
144
Break-even Point (BEP)
the sales quantity where the firm’s total cost will just equal its total revenue
145
Fixed-Cost (FC) Contribution (per unit)
the selling price per unit minus the variable cost per unit
146
Marginal Analysis
evaluating the change in total revenue and total cost from selling one more unit to find the most profitable price and quantity
147
Value in Use Pricing
setting prices that will capture some of what customers will save by substituting the firm’s product for the one currently being used
148
Reference Price
the price a consumer expects to pay
149
Leader Pricing
setting some very low prices— real bargains— to get customers into retail stores
150
Bait Pricing
setting some very low prices to attract customers but trying to sell more expensive models or brands once the customer is in the store
151
Psychological Pricing
setting prices that have special appeal to target customers
152
Odd-even Pricing
setting prices that end in certain numbers
153
Price Lining
setting a few price levels for a product line and then marking all items at these prices
154
Demand-backward Pricing
setting an acceptable final consumer price and working backward to what a producer can charge
155
Prestige Pricing
setting a rather high price to suggest high quality or high status
156
Full-Line Pricing
setting prices for a whole line of products
157
Complementary Product Pricing
setting prices on several related products as a group
158
Product-Bundle Pricing
setting one price for a set of products
159
Bid Pricing
offering a specific price for each possible job rather than setting a price that applies for all customers
160
Negotiated Price
a price that is set based on bargaining between the buyer and seller
