Final Exam Flashcards
promotion
communication by marketers that informs, persuades, and reminds potential buyers of a product to influence an opinion or elicit a response.
promotional strategy
a plan for the optimal use of elements of promotion: advertising, public relations, personal selling, sales promotion, and social media.
marketing communication
is a two way rather than a one-way process. Marketers can act as both senders and receivers.
AIDA
a model that outlines the process for achieving promotional goals in terms of stages of consumer involvement with the message; the acronym stands for attention, interest, desire, and action.
institutional advertising
a form of advertising designed to enhance a company’s image rather than promote a particular product.
product advertising
a form of advertising that touts the benefits of a specific good or service.
advocacy advertising
a form of advertising in which an organization expresses its views on controversial or responds to media attacks.
pioneering advertising
a form of advertising designed to stimulate primary demand for a new product or product category.
competitive advertising
a form of advertising designed to influence demand for a specific brand.
comparative advertising
a form of advertising that compares two or more specifically named or shown competing brands on one or more specific attributes.
media mix
the combination of media to be used for a promotional campaign.
media schedule
designation of the media, the specific publications or programs, and the insertion dates of advertising.
continuous media schedule
a media scheduling strategy in which advertising is run steadily throughout the advertising period; used for products in the later stages of the product life cycle.
flighted media schedule
a media scheduling strategy in which ads are run heavily every other month or every two weeks to achieve a greater impact with an increased frequency and reach at those times.
pulsing media schedule
a media scheduling strategy that uses continuous scheduling throughout the year coupled with a flighted schedule during the best sales periods.
seasonal media schedule
a media scheduling strategy that runs advertising only during times of the year when the product is most likely to be used.
campaign management
developing product or service offerings customized for the appropriate customer segment and then pricing and communicating these offerings for the purpose of enhancing customer relationships.
relationship selling
a sales practice that involves building, maintaining, and enhancing interactions with customers to develop long-term satisfaction through mutually beneficial partnerships.
price
that which is given up in an exchange to acquire a good or service.
revenue
the price charged to customers multiplied by the number of units sold.
profit
revenue minus expenses.
status quo pricing
a pricing objective that maintains existing prices or meets the competitions prices.
elasticity of demand
consumers responsiveness or sensitivity to changes in price.
elastic demand
a situation in which consumer demand is sensitive to changes in price.
inelastic demand
a situation in which an increase or a decrease in price will not significantly affect demand for the product.
dynamic pricing
the ability to change prices very quickly often in real time using software programs.
surge pricing
occurs in a fluid market, where demand changes rapidly, often hourly. When demand increases, so do prices and vice versa.
markup pricing
the cost of buying the product from the producer, plus amounts for profit and for expenses not otherwise accounted for.
key stoning
the practice of marking up prices by 100 percent or doubling the cost.
price skimming
a pricing policy whereby a firm charges high introductory price, often coupled with heavy promotion.
penetration pricing
a pricing policy whereby a firm charges a relatively low price for a product when it is first rolled out to reach the mass market.
base price
the general price level at which the company expects to sell the good or service.
quantity discount
a price reduction offered to buyers in multiple units or above a specified dollar amount.
cash discounts
a price reduction offered to a consumer, an industrial user, or a marketing intermediary in return for prompt payment of a bill.
functional discount
a discount to wholesalers and retailers for performing channel functions
seasonal discount
a price reduction for buying merchandise out of season.
promotional allowance
a payment to a dealer for promoting the manufacturers products.
rebate
a cash refund given for the purchase of a product during a specific period.
uniform delivered pricing
a price tactic in which the seller pays the actual freight charges and bills every purchaser an identical, flat freight charge.
zone pricing
a modification of uniform delivered pricing that divides the United States or the total market into segments or zones and charges a flat freight rate to all customers in a given zone.
freight absorption pricing
a price tactic in which the seller pays all or part o the actual freight charges and does not pass them on to the buyer.
single price tactic
a price tactic that offers all goods and services at the same price.
flexible or variable pricing
a price tactic in which different customers pay different prices for essentially the same merchandise bought in equal quantities.
price lining
the practice of offering a product line with several items at specific price points.
leader pricing
a price tactic in which a product is sold near or even below cost in the hope that shoppers will buy other items once they are in the store.
bait pricing
a price tactic that tries to get consumes into a store through false or misleading price advertising and then uses high-pressure selling to persuade consumers to buy more expensive merchandise.
