Vocabulary: Ch 1, 4, 6, 7, 8 Flashcards
the definition of marketing focuses on __ as the central concept in marketing
exchange
value
the customer’s perception of all the benefits of a product or service weighed against all costs of acquiring and consuming it
promotion
the coordination of all seller-initiated efforts to set up channels of information and persuasion in order to sell goods and services or promote an idea.
promotional mix
while implicit communication occurs through the various elements of the marketing mix, most of an organization’s communications with the market place take place as a part of carefully planned and controlled promotional program. the basic tools used to accomplish an organization’s communication’s objectives are referred to as the promotional mix.
4 elements: advertising, sales promotion, publicity/public relations, and personal selling.
extra: direct marketing, digital/internet active media
direct marketing
organizations communicate directly with target customers to generate a response and/or a transaction
direct-response advertising
a product is promoted through an ad that encourages the consumer to purchase directly from the manufacturer
interactive media
allows for a two way flow of communication whereby users can participate in and modify the form and content of the info they receive in real time.
social media
the online means of communication and interactions among people that are used to create, share, and exchange content such as info, insights, experiences, perspectives, and even media.
sales promotion
those marketing activities that provide extra value or incentives to the sales force, the distributors, or the ultimate consumer and can stimulate immediate sales.
contact (or touch) point
refers to each and every opportunity the customer has to see or hear about the company and/or its brands or have an encounter or experience with it. can range from seeing, hearing, and experience.
integrated marketing communications management
involves the process of planning, executing, evaluating, and controlling the use of the various promotional-mix elements to effectively communicate with target audiences.
integrated marketing communications plan
provides the framework for developing, implementing, and controlling the organization’s IMC program.
internal analysis
assesses relevant areas involving the product/service offering and the firm itself.
external analysis
focuses on factors such as characteristics of the firm’s customers, market segments, positioning strategies, and competitors.
consumer behavior
the process and activities people engage in when searching for selecting purchasing using evaluating and disposing of products and services so as to satisfy their needs and desires
Problem recognition
Occurs when a consumer perceives the need and becomes motivated to solve the problem the problem recognition stage initiates the subsequent decision process it is caused by a difference between the consumers ideal state an actual state
Motives
Those factors that compel a consumer to take a particular action
Psychoanalytic theory
Pioneered by Sigmund Freud. Consumers motivations for purchasing are often very complex and unclear to the the consumers themselves many motives for purchase and or consumption may be Driven by deep motives
Motivation research
research in marketing under the psychoanalytic theory
Perception
The process by which an individual receives selects organizes and interprets information to create a meaningful picture of the world
Subliminal perception
Refers to the ability to perceive a stimulus that is below the level of conscious awareness
Beliefs concerning specific attributes or consequences that are activated and formed the basis of an attitude are referred to as
Salient beliefs
Integration processes
The way product knowledge meanings and believes are combined to evaluate two or more alternatives
heuristics
Simplify decision rules such as find the least expensive brand
affect referral decision rule
type of heuristic
Consumers make a selection on the basis of an overall impression or summary evaluation of the various alternatives under consideration this decision rule suggest that consumers have affective impressions of brands sort of memory that can be accessed at the time of purchase
Purchase intention
Predisposition to buy a certain brand
Classical conditioning
Assumes that learning is in associative process with an already existing relationship between a stimulus and a response
A conditioned stimulus elicits a…
…Conditioned response
In the operant conditioning approach the individual must…
…Actively operate or act on some aspect of the environment for learning to occur operant conditioning is sometimes referred to as instrumental conditioning.
Reinforcement
The reward or favorable consequence associated with a particular response, an important element of instrumental conditioning
Reinforcement schedules can also be used to influence consumer learning and behavior through a process known as …
Shaping, The reinforcement of successive acts that lead to a desired behavior pattern or response
The brightest and most abstract of the external factors that influence consumer behavior is…
Culture
Subcultures may be based on…
…Age geographic religious racial and or ethnic differences
Social class
Refers to relatively homogeneous divisions in a society into which people sharing similar lifestyles values norms interests and behaviors can be grouped
Reference group
A group who is presumed perspectives or values are being used by an individual as the basis for his or her judgments and opinions and actions
Three types of situational determinants
The specific usage situation
The purchase situation
The communications situation
The persuasion matrix
Helps marketers see how each controllable element interacts with consumers response process
The controllable components of the communication process
Independent variables
The steps of receiver goes through and being persuaded
Dependent variables
Source
The person involved in communicating a marketing message either directly or indirectly
Internalization
Occurs when the receiver adopt the opinion of the credible communicators since he or she leaves information from this source is accurate
Sleeper effect
The persuasiveness of a message increases with the passage of time
A source characteristic frequently used by advertisers is attractiveness which encompasses
Similarity familiarity and likability
Source attractiveness leads to persuasion through a process of
Identification, Where are by the receiver is motivated to seek some type of relationship with the stores and that’s the dogs similar beliefs attitudes preferences or behavior
Familiarity score
Indicate what percentage of people has heard of the person while the one of my favorite score is an absolute measure of the appeal or popularity of the celebrity
Q score
Calculated by taking the percentage of respondents who indicate that a person is one of my favorites and then divide that number by the percentage of respondents who indicate they have heard of that person
Source power
A source has power when he or she can actually administer rewards and punishments to the receiver
When I receive or perceive the source is having power the influence process occurs through a process known as
Compliance
One-sided message
Mentions only positive attributes or benefits
Two-sided message
Presents both good and bad points
One sided message is most effective when
Target audience already has a favorable opinion about the topic
Two sided message is most effective when
Target audience holds an opposing opinion or is highly educated. may enhance the credibility of the source.
Refutational appeal
The communicator presents both sides of an issue and then refutes the opposing viewpoint
wearout
Refers to the tendency of a television or radio commercial to lose its effectiveness when it is seen and or heard repeatedly
Information from ads and print media such as newspapers magazines or direct mail as well as the Internet is
Self paced.
Readers process the ad at their own rate and can study as long as they desire
A qualitative media effect
The influence the medium has on a message
clutter
The amount of advertising in a medium
carryover effect
Money spent on advertising do not necessarily have an immediate impact on sales because advertising may create awareness interest and or favorable attitudes towards a brand but these feelings will not result in an actual purchase until the consumer enters the market for the product which may occur later
zero-based communications planning
Involves determining what tasks need to be done in which marketing communications functions should be used and to what extent
Contribution margin
The difference between the total revenue generated by a brand and it’s variable costs
Marginal analysis
As advertising/promotional expenditures increase sales and gross margins also increased to a point but then they level off. Profits are shown to be a result of the gross margin minus advertising expenditures
concave-downward function model
The effects of advertising quickly begin to diminish
s-shaped response curve
AnS shaped response function to the budget outlay. After a certain budget level has been reached advertising and promotional efforts begin to have an affect as additional increments of expenditures result and increased sales this incremental gain continues only to a point
Affordable method – a top-down approach
The firm determines the amount to be spent in various areas such as production and operations then in allocates what’s left to advertising and promotion considering this to be the amount it can afford
Arbitrary allocation – a top-down approach
A week or method in the affordable method in which virtually no theoretical basis is considered and the budgetary amount is often said by fear. That is the budget is determined by management solely on the basis of what is felt to be necessary
Percentage of sales method – a top-down approach
In which the advertising and promotions budget is based on the sales of the product. Management determines the amount by either taking a percentage of the sales dollars or assigning a fixed amount of the unit product cost to promotion and multiplying this amount by the number of units sold
Competitive party method – a top-down approach
Managers establish budget amount by matching the competitions percentage of sales expenditures. The argument is that setting budgets in this fashion takes advantage of the collective wisdom of the industry.
ROI budgeting method – a top-down approach
Advertising and promotions are considered investments like plant and equipment. Thus the budgetary appropriation leads to certain returns. Like other aspects of the firms efforts advertising and promotion are expected to earn a certain return
Objective and task method – a bottom-up approach
1) Defined the communications objective is to be accomplished
2) Determines the specific strategies and tasks needed to attain them
3) Estimate the cost associated with performance of the strategies and tasks
The total budget is based on the accumulation of these costs
Payout plan
To determine how much to spend marketers often develop a payer plan that determines the investment value of the advertising and promotion appropriation
Economies of scale
Larger advertisers can maintain advertising shares that are smaller than their market shares because they get better advertising rates have declining average cost of production and accrue the advantages of advertising several products jointly. In addition they are likely to enjoy more favorable time and space positions cooperation and mental people and favorable publicity
Advertising creativity
The ability to generate fresh do you need an appropriate or relevant ideas that can be used as solutions to communication problems
Divergence
The extent to which an ad contains elements that are novel different or unusual
Five major factors that could account for the ways divergence can be achieved in advertising
Originality flexibility elaboration synthesis artistic value
The second major determinant of creativity is…
…Relevance.
Account planning
A process that involves conducting research in gathering all relevant information about a clients product or service brand and consumers in the target audience
General preplanning input
Can include books periodicals trade publications websites scholarly journals pictures and clipping services which gather and organize magazine newspaper and online articles on the product the market in the competition including the latter’s ads
product- or service-specific preplanning input
Comes in the form of specific studies conducted on the product or service the target audience or a combination of the two
Problem detection
This research technique involves asking consumers familiar with a product or service to generate an exhaustive list of things that bother them or problems they encounter when using it
Storyboard
A series of drawings used to present the visual plan or lay out a proposed commercial
Animatic
Video tape of the storyboard along with an audio soundtrack
Advertising campaign
A set of interrelated and coordinate American communications activities that center on a single theme or idea that appears in different media across a specific time.
Slogan or tagline
Reduces the key idea into a few words or a brief statement
Creative brief
The written creative brief specifies the basic elements of the creative strategy.
Image advertising
Creating a brand image for a product. Based on the development of a strong memorable identity for the brand
Inherent drama
Characteristic of the product that makes the consumer purchase it. This is an approach to determining the major selling idea.
