Marketing Ch.17 Flashcards
Communication
process of conveying a message to others
Six elements of communication
source,message, channel of comm., reciever, endcoding/decoding
Field of expereince
a similar understanding and knowledge they apply to a message
response
the impact the message had
feedback
the senders interpretation of the response and indicates whether the message was decoded as intended
Noise
extraneous factors that work against effective communications by distorting a message or the feedback . Ex. Printing mistake, misunderstanding of language
Advertising
any paid form of nonpersonal communication about an organization, product, service or idea by an identified sponsor
personal selling
the two way flow of communications between a buyer and seller designed to influence a person’s or group’s purchase decision. Usually face to face. No wasted coverage. Less consistent
PR
the form of communication management that seeks to influence the feelings/opinions held by customers, prospective customers, suppliers, stock holders, the general public
Publicity
nonpersonal, indirectly paid presentation of an organization, product, or service ex. New story, editorial, product announcment
Adv- credibilit
disadv- lack of control
sales promotion
short term inducement of value offered to arouse interest in buing a product or service…Coupons, rebates, samples, contests, sweepstakes.
direct marketing
uses direct communication with consumers to generate a response in the form of an order, a request for further info or a visit to a retail outlet. Forms: catalogs, direct mail, telephone.
introduct stage
primary objective: to inform consumers in a n effort to increase their level of awareness. all promotional mix used
Growth stage
persuade consumers to but theproduct rather than the substitutes. Sales promotion= less important. Advertising is ++ important
Maturity stage
need to maintain existing buyers and advertising role is to remind buyers of the products existances. Sales promotions: coupons. Direct Marketing
Complexity
technical sophistication of the product. The amount of understanding to use it. The more complex, the greater emphasis on personal selling.
risk
financial risk, social risk, physical risk. The greater the risk, the greater the need for personal selling.
ancillary servcies
pretain to the degree of service or support required after the sale. Personal selling essential to build byer confidence of customer service
prepurchase stage
advertising is more helpful than personal. Advertising informs the potential customer of the existence of the product and the seller. Sales promotions: free samples to gain low risk trial.
purchase stage
personal selling is most important, sales promotion in coupons, rebates can help. Advertising is least helpful.
post purchase stage
salesperson is still important, the more personal contact after the sale the more satisfied the buyer. Advertising is important to reassure the buyer made the righ decision.
push strategy
directing the promotional mix to channel members to gain their cooperation in ordering and stocking the product. Idea is- by pushing the product through the channel the goal is to get channel members to push it to their customers
pull strategy
manufacturers face resistance from channel members who don’t want to order a new product or increase levels. So they direct their promotional mix at ultimate consumers to encourage them to ask retailer for a product.
behavioral targeting
collecting info about web browsing behavior to determine the banner and display ads you will see.
heirarchy of effects
sequence of stages a prospective buyer goes through from intitial awareness of a product to eventual action:
awareness->interest->evaluation->adoption
promotion budget: as percent of sales
funds are allocated to promotion as percentage of past or anticipated sales in terms of either dollars or units sold. Downside: lower sales shouldn’t always mean lower promotion
promotion budget: competitve parity
- is matching the competitors absolute level of spending or the proportion per point of market share.
promotion budget: all you can afford
money allocated to promtion only after all other budget items are covered,
promotion budget: objective and task
Best approach. Company determines its promotion objectives, outlines the tasks it will undertake to accomplish those objective and determines the promotion cost of preforming those tasks.
Direct Orders
the result of offers that contain all the info necessary for a prospective buyer to make a decision to purchase and compete the transaction
lead generation
the result of an offer designed to generate interest in a product or service and a request for additional information
traffic generation
the outcome of an offer deisnged to motivate people to visit a business
