Final Exam

Question 1

promotion

Answer 1

communication by marketers that informs, persuades, and reminds potential buyers of a product to influence an opinion or elicit a response.

Question 2

promotional strategy

Answer 2

a plan for the optimal use of elements of promotion: advertising, public relations, personal selling, sales promotion, and social media.

Question 3

marketing communication

Answer 3

is a two way rather than a one-way process. Marketers can act as both senders and receivers.

Question 4

AIDA

Answer 4

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.

Question 5

institutional advertising

Answer 5

a form of advertising designed to enhance a company’s image rather than promote a particular product.

Question 6

product advertising

Answer 6

a form of advertising that touts the benefits of a specific good or service.

Question 7

advocacy advertising

Answer 7

a form of advertising in which an organization expresses its views on controversial or responds to media attacks.

Question 8

pioneering advertising

Answer 8

a form of advertising designed to stimulate primary demand for a new product or product category.

Question 9

competitive advertising

Answer 9

a form of advertising designed to influence demand for a specific brand.

Question 10

comparative advertising

Answer 10

a form of advertising that compares two or more specifically named or shown competing brands on one or more specific attributes.

Question 11

media mix

Answer 11

the combination of media to be used for a promotional campaign.

Question 12

media schedule

Answer 12

designation of the media, the specific publications or programs, and the insertion dates of advertising.

Question 13

continuous media schedule

Answer 13

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.

Question 14

flighted media schedule

Answer 14

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.

Question 15

pulsing media schedule

Answer 15

a media scheduling strategy that uses continuous scheduling throughout the year coupled with a flighted schedule during the best sales periods.

Question 16

seasonal media schedule

Answer 16

a media scheduling strategy that runs advertising only during times of the year when the product is most likely to be used.

Question 17

campaign management

Answer 17

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.

Question 18

relationship selling

Answer 18

a sales practice that involves building, maintaining, and enhancing interactions with customers to develop long-term satisfaction through mutually beneficial partnerships.

Question 19

price

Answer 19

that which is given up in an exchange to acquire a good or service.

Question 20

revenue

Answer 20

the price charged to customers multiplied by the number of units sold.

Question 21

profit

Answer 21

revenue minus expenses.

Question 22

status quo pricing

Answer 22

a pricing objective that maintains existing prices or meets the competitions prices.

Question 23

elasticity of demand

Answer 23

consumers responsiveness or sensitivity to changes in price.

Question 24

elastic demand

Answer 24

a situation in which consumer demand is sensitive to changes in price.

Question 25

inelastic demand

Answer 25

a situation in which an increase or a decrease in price will not significantly affect demand for the product.

Question 26

dynamic pricing

Answer 26

the ability to change prices very quickly often in real time using software programs.

Question 27

surge pricing

Answer 27

occurs in a fluid market, where demand changes rapidly, often hourly. When demand increases, so do prices and vice versa.

Question 28

markup pricing

Answer 28

the cost of buying the product from the producer, plus amounts for profit and for expenses not otherwise accounted for.

Question 29

key stoning

Answer 29

the practice of marking up prices by 100 percent or doubling the cost.

Question 30

price skimming

Answer 30

a pricing policy whereby a firm charges high introductory price, often coupled with heavy promotion.

Question 31

penetration pricing

Answer 31

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.

Question 32

base price

Answer 32

the general price level at which the company expects to sell the good or service.

Question 33

quantity discount

Answer 33

a price reduction offered to buyers in multiple units or above a specified dollar amount.

Question 34

cash discounts

Answer 34

a price reduction offered to a consumer, an industrial user, or a marketing intermediary in return for prompt payment of a bill.

Question 35

functional discount

Answer 35

a discount to wholesalers and retailers for performing channel functions

Question 36

seasonal discount

Answer 36

a price reduction for buying merchandise out of season.

Question 37

promotional allowance

Answer 37

a payment to a dealer for promoting the manufacturers products.

Question 38

rebate

Answer 38

a cash refund given for the purchase of a product during a specific period.

Question 39

uniform delivered pricing

Answer 39

a price tactic in which the seller pays the actual freight charges and bills every purchaser an identical, flat freight charge.

Question 40

zone pricing

Answer 40

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.

Question 41

freight absorption pricing

Answer 41

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.

Question 42

single price tactic

Answer 42

a price tactic that offers all goods and services at the same price.

Question 43

flexible or variable pricing

Answer 43

a price tactic in which different customers pay different prices for essentially the same merchandise bought in equal quantities.

Question 44

price lining

Answer 44

the practice of offering a product line with several items at specific price points.

Question 45

leader pricing

Answer 45

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.

Question 46

bait pricing

Answer 46

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.