FINAL EXAM1 Flashcards
1
Q
AIDA concept
A
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
2
Q
Advertising
A
impersonal, one-way mass communication about a product or organization that is paid for by a marketer
3
Q
Communication
A
the process by which we exchange or share meaning through a common set of symbols
4
Q
Decoding
A
interpretation of the language and symbols sent by the source through a channel
5
Q
Earned media
A
a category of promotional tactic based on a public relations or publicity model that gets customers talking about products or services
6
Q
Encoding
A
the conversion of a sender’s ideas and thoughts into a message, usually in the form of words or signs
7
Q
Interpersonal communication
A
direct, face-to-face communication between two or more people
8
Q
Mass communication
A
the communication of a concept or message to large audiences
9
Q
Owned media
A
a new category of promotional tactic based on brands becoming publishers of their own content in order to maximize the brands’ value to customers
10
Q
Paid media
A
a category of promotional tactic based on the traditional advertising model, whereby a brand pays for media space
11
Q
Personal selling
A
a purchase situation involving a personal, paid-for communication between two people in an attempt to influence each other
12
Q
Promotional strategy
A
a plan for the optimal use of the elements of promotion: advertising, public relations, personal selling, sales promotion, and social media
13
Q
Public relations
A
the marketing function that evaluates public attitudes, identifies areas within the organization the public may be interested in, and executes a program of action to earn public understanding and acceptance
14
Q
Sales promotion
A
marketing activities—other than personal selling, advertising, and public relations—that stimulate consumer buying and dealer effectiveness
15
Q
channel
A
a medium of communication—such as a voice, radio, or newspaper—for transmitting a message
16
Q
competitive advantage
A
one or more unique aspects of an organization that cause target consumers to patronize that firm rather than competitors
17
Q
feedback
A
the receiver’s response to a message
18
Q
integrated marketing communications (IMC)
A
the careful coordination of all promotional messages for a product or a service to ensure the consistency of messages at every contact point at which a company meets the consumer
19
Q
noise
A
anything that interferes with, distorts, or slows down the transmission of information
20
Q
promotion
A
communication by marketers that informs, persuades, and reminds potential buyers of a product in order to influence an opinion or elicit a response
21
Q
promotional mix
A
the combination of promotional tools—including advertising, public relations, personal selling, sales promotion, and social media—used to reach the target market and fulfill the organization’s overall goals
22
Q
publicity
A
public information about a company, product, service, or issue appearing in the mass media as a news item
23
Q
pull strategy
A
a marketing strategy that stimulates consumer demand to obtain product distribution
24
Q
push strategy
A
a marketing strategy that uses aggressive personal selling and trade advertising to convince a wholesaler or a retailer to carry and sell particular merchandise
25
receivers
the person who decodes a message
26
sender
the originator of the message in the communication process
27
Comparative advertising
a form of advertising that compares two or more specifically named or shown competing brands on one or more specific attributes
28
Consumer sales promotion
promotion activities targeted to the ultimate consumer market
29
Cost per click
the cost associated with a consumer clicking on a display or banner ad
30
Cost per contact
the cost of reaching one member of the target market
31
Crisis management
a coordinated effort to handle all the effects of unfavorable publicity or another unexpected unfavorable event
32
Frequency
the number of times an individual is exposed to a given message during a specific period
33
Media planning
the series of decisions advertisers make regarding the selection and use of media, allowing the marketer to optimally and cost-effectively communicate the message to the target audience
34
Pioneering advertising
a form of advertising designed to stimulate primary demand for a new product or product category
35
Product placement
a public relations strategy that involves getting a product, service, or company name to appear in a movie, television show, radio program, magazine, newspaper, video game, video or audio clip, book, or commercial for another product; on the Internet; or at special events
36
Public relations
the element in the promotional mix that evaluates public attitudes, identifies issues that may elicit public concern, and executes programs to gain public understanding and acceptance
37
Publicity
an effort to capture media attention, often initiated through press releases that further a corporation’s public relations plans
38
Reach
the number of target consumers exposed to a commercial at least once during a specific period, usually four weeks
39
Sampling
a promotional program that allows the consumer the opportunity to try a product or service for free
40
Trade sales promotion
promotion activities directed to members of the marketing channel, such as wholesalers and retailers
41
advergaming
placing advertising messages in web-based, mobile, console, or handheld video games to advertise or promote a product, service, organization, or issue
42
advertising appeal
a reason for a person to buy a product
43
advertising campaign
a series of related advertisements focusing on a common theme, slogan, and set of advertising appeals
44
advertising objective
a specific communication task that a campaign should accomplish for a specified target audience during a specified period
45
advertising response function
a phenomenon in which spending for advertising and sales promotion increases sales or market share up to a certain level but then produces diminishing returns
46
advocacy advertising
a form of advertising in which an organization expresses its views on controversial issues or responds to media attacks
47
audience selectivity
the ability of an advertising medium to reach a precisely defined market
48
competitive advertising
a form of advertising designed to influence demand for a specific brand
49
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
50
cooperative advertising
an arrangement in which the manufacturer and the retailer split the costs of advertising the manufacturer’s brand
51
coupon
a certificate that entitles consumers to an immediate price reduction when the product is purchased.
52
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
53
frequent buyer program
a loyalty program in which loyal consumers are rewarded for making multiple purchases of a particular good or service
54
infomercial
a 30-minute or longer advertisement that looks more like a television talk show than a sales pitch
55
institutional advertising
a form of advertising designed to enhance a company’s image rather than promote a particular product
56
loyalty marketing program
a promotional program designed to build long-term, mutually beneficial relationships between a company and its key customers
57
media mix
the combination of media to be used for a promotional campaign
58
media schedule
designation of the media, the specific publications or programs, and the insertion dates of advertising
59
medium
the channel used to convey a message to a target market
60
point-of-purchase (P-O-P) display
a promotional display set up at the retailer’s location to build traffic, advertise the product, or induce impulse buying
61
premium
an extra item offered to the consumer, usually in exchange for some proof of purchase of the promoted product
62
product advertising
a form of advertising that touts the benefits of a specific good or service
63
pulsing media schedule
a media scheduling strategy that uses continuous scheduling throughout the year coupled with a flighted schedule during the best sales periods
64
push money
money offered to channel intermediaries to encourage them to “push” products—that is, to encourage other members of the channel to sell the products
65
rebate
a cash refund given for the purchase of a product during a specific period
66
sales promotion
marketing communication activities other than advertising, personal selling, and public relations, in which a short-term incentive motivates consumers or members of the distribution channel to purchase a good or service immediately, either by lowering the price or by adding value
67
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
68
sponsorship
a public relations strategy in which a company spends money to support an issue, cause, or event that is consistent with corporate objectives, such as improving brand awareness or enhancing corporate image
69
trade allowance
a price reduction offered by manufacturers to intermediaries such as wholesalers and retailers
70
unique selling proposition
a desirable, exclusive, and believable advertising appeal selected as the theme for a campaign
71
Bait pricing
a price tactic that tries to get consumers into a store through false or misleading price advertising and then uses high-pressure selling to persuade consumers to buy more expensive merchandise
72
Break-even analysis
a method of determining what sales volume must be reached before total revenue equals total costs
73
Demand
the quantity of a product that will be sold in the market at various prices for a specified period
74
Elastic demand
a situation in which consumer demand is sensitive to changes in price
75
Elasticity of demand
consumers’ responsiveness or sensitivity to changes in price
76
FOB origin pricing
a price tactic that requires the buyer to absorb the freight costs from the shipping point (“free on board”)
77
Flexible pricing (or variable pricing
a price tactic in which different customers pay different prices for essentially the same merchandise bought in equal quantities
78
Leader pricing (or loss-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
79
Market share
a company’s product sales as a percentage of total sales for that industry
80
Odd–even pricing (or psychological pricing
a price tactic that uses odd-numbered prices to connote bargains and even-numbered prices to imply quality
81
Penetration pricing
a pricing policy whereby a firm charges a relatively low price for a product when it is first rolled out as a way to reach the mass market
82
Predatory pricing
the practice of charging a very low price for a product with the intent of driving competitors out of business or out of a market
83
Price
that which is given up in an exchange to acquire a good or service
84
Price bundling
marketing two or more products in a single package for a special price
85
Price fixing
an agreement between two or more firms on the price they will charge for a product
86
Price lining
the practice of offering a product line with several items at specific price points
87
Price skimming
a pricing policy whereby a firm charges a high introductory price, often coupled with heavy promotion
88
Revenue
the price charged to customers multiplied by the number of units sold
89
Status quo pricing
a pricing objective that maintains existing prices or meets the competition’s prices
90
Supply
the quantity of a product that will be offered to the market by a supplier at various prices for a specified period
91
Two-part pricing
a price tactic that charges two separate amounts to consume a single good or service
92
Value-based pricing
setting the price at a level that seems to the customer to be a good price compared to the prices of other options
93
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
94
base price
the general price level at which the company expects to sell the good or service
95
basing-point pricing
a price tactic that charges freight from a given (basing) point, regardless of the city from which the goods are shipped
96
cash discount
a deduction allowed by the seller of goods or by the provider of services in order to motivate the customer to pay within a specified time.
97
consumer penalties
an extra fee paid by the consumer for violating the terms of the purchase agreement
98
cumulative quantity discount
a deduction from list price that applies to the buyer’s total purchases made during a specific period
99
dynamic pricing
the ability to change prices very quickly, often in real time
100
extranets
a private electronic network that links a company with its suppliers and customers
101
fixed cost
a cost that does not change as output is increased or decreased
102
freight absorption pricing
a price tactic in which the seller pays all or part of the actual freight charges and does not pass them on to the buyer
103
functional discount (or trade discount)
a discount to wholesalers and retailers for performing channel functions
104
inelastic demand
a situation in which an increase or a decrease in price will not significantly affect demand for the product
105
keystoning
the practice of marking up prices by 100 percent, or doubling the cost
106
markup pricing
the cost of buying the product from the producer, plus amounts for profit and for expenses not otherwise accounted for
107
noncumulative quantity discount
a deduction from list price that applies to a single order rather than to the total volume of orders placed during a certain period
108
price strategy
a basic, long-term pricing framework that establishes the initial price for a product and the intended direction for price movements over the product life cycle
109
profit
revenue minus expenses
110
promotional allowance
a payment to a dealer for promoting the manufacturer’s products
111
quantity discount
a price reduction offered to buyers buying in multiple units or above a specified dollar amount
112
rebate
a cash refund given for the purchase of a product during a specific period
113
return on investment (ROI)
net profit after taxes divided by total assets
114
seasonal discount
a price reduction for buying merchandise out of season
115
single-price tactic
a price tactic that offers all goods and services at the same price (or perhaps two or three prices)
116
unfair trade practice acts
laws that prohibit wholesalers and retailers from selling below cost
117
uniform delivered pricing
a price tactic in which the seller pays the actual freight charges and bills every purchaser an identical, flat freight charge
118
variable cost
a cost that varies with changes in the level of output
119
yield management systems (YMS)
a technique for adjusting prices that uses complex mathematical software to profitably fill unused capacity by discounting early purchases, limiting early sales at these discounted prices, and overbooking capacity
120
Wild Plus, a television channel dedicated to wildlife, wanted to promote its new wildlife adventure series. The series was given wide coverage in newspapers and on television after the channel promoted it, which created awareness about Wild Plus and led to a large viewership. In this case, Wild Plus engaged in:
public relations
121
Advent Automobiles Inc. launches a new sport utility vehicle (SUV). It develops a marketing message and places advertisements in leading newspapers and on social media sites to inform consumers about the new SUV and its various features. In the context of the communication process, Advent Automobiles Inc. is the _____.
sender
122
Duski, a very expensive brand of clothing and accessories, promotes its products by using advertisements that feature beautiful women clothed in its brands. Given this information, which of the following advertising appeals is used by Duski?
A. Health
B. Environmental consciousness
C. Profit
D. Vanity and egotism
D. Vanity and egotism
123
A catalog merchant divides the country into regions. Every buyer in a particular region pays the same average shipping charge. The shipping charges differ from region to region, depending on how far the region is from the catalog merchant's main warehouse facility. The catalog merchant is using:
Ex of Zone pricing
124
Which of the following statements about geographic pricing policies is true?
A) Zone pricing penalizes buyers closest to the factory.
B) Uniform delivered pricing is more practical when transportation costs are relatively low.
C) Freight absorption pricing may increase the size of market territories.
D) F.O.B. pricing tends to reduce the size of market territories.
E) All of these statements about geographic pricing policies are true.
E
Zone pricing means making an average freight charge to all buyers within specific geographic areas and bill all customers in the same zone the same amount for freight even though actual shipping costs might vary. Uniform delivered pricing is most often used when (1) transportation costs are relatively low and (2) the seller wishes to sell in all geographic areas at one price. F.O.B. stands for free on board. F.O.B. shipping point pricing simplifies the seller's pricing—but it may narrow the market. Freight-absorption pricing helps in competing on equal grounds in another territory.
125
Which of the following statements is true of unfair trade practice acts?
a.
State enforcement of unfair trade practice laws has been lax partly because low prices benefit local consumers.
b.
They establish penalties for companies that engage in predatory pricing.
c.
They prohibit any firm from selling to two or more different buyers.
d.
Unfair trade practice lawsprevent oligopoly leaders from joining together and fixing prices at the highest rates that a market will allow.
a.
| State enforcement of unfair trade practice laws has been lax partly because low prices benefit local consumers.
126
The source deciding what it wants to say and translating it into words and symbols that will have the same meaning to the receiver
encoding
127
communicating information between the seller and potential buyer or others in the channel to influence attitudes and behavior.
promotion
128
At a local supermarket, Linda saw a box of plant fertilizer that was retailed at $25 but was marked down to $20.99. Given this information, $20.99 is the:
a. price.
b. dividend.
c. profit.
d. margin.
a. Price
129
A _____ is a price reduction offered to buyers buying in multiple units or above a specified dollar amount.
a. tradediscount
b. cash discount
c. seasonal discount
d. quantity discount
ANSWER: d
A quantity discount is a price reduction offered to buyers buying in multiple units or above a specified dollar amount. The two types of quantity discounts are cumulative and noncumulative quantity discounts.
130
Pioneer advertising is heavily used during the ____ stage on product life cycle
introductory
131
If an advertiser wants to enhance the sales of a specific good or service, institutional advertising should be used
F
They should use Product adversting
132
The Federal Trade Commission does not allow the identification of competing brands in comparative advertising. T/F?
F
133
Which of the following statements is true about public relations?
D
D. An effective public relations program continues over months or even years
134
Unlike magazine advertising, radio advertising:
A) provides maximum flexibility.
B) has longer lead time.
C) poses difficulty in communicating humor.
D) has high unit and production costs.
A
provides maximum flexibility.
135
A disadvantage of newspaper advertising is that:
A) it has low geographic selectivity and flexibility.
B) it may not be the best vehicle for marketers trying to reach a very narrow market.
C) it does not lend itself well to cooperative advertising.
D) it does not allow manufacturers and retailers to split the costs of advertising.
B) it may not be the best vehicle for marketers trying to reach a very narrow market.
136
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A _____ is 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.
A) circular media schedule
B) flighted media schedule
C) continuous media schedule
D) seasonal media schedule
```
B) flighted media schedule
137
Kelly's Kitchen, a popular chain of fast food restaurants, offers a kids' meal pack free with every purchase of its luxury meal pack. This is an example of a:
a. trade allowance.
b. loyalty marketing program.
c. rebate.
d. premium.
premium.
138
True or False? The selection of media is not dependent on promotional objectives, the appeal, or executional style of advertising.
F
139
True or False? Newspapers and magazines have a high noise level.
True
140
During the _____ of the product life cycle, the basic goal of promotion is to inform the target audience that the product is available.
The introduction stage
141
Which of the following statements is a characteristic of sales promotion?
Trade shows, coupons, premiums, and vacation giveaways are types of sales promotions.
142
_____ includes media such as television, magazine, outdoor, radio, or newspaper advertising.
"push" media
143
Noise refers to anything that interferes with, distorts, or slows down the transmission of information.
True
144
Informative promotion is used to keep the product and brand name in the public's mind.
a. True
b. False
False
145
Advertising is increased as a product enters the decline stage of its life cycle.
False
146
Sales promotion's greatest strength is in creating strong desire and purchase intent.
True
147
Personal selling is not required when buyers are well informed and geographically dispersed.
False
