Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
142 Cards in this Set
- Front
- Back
|
Mass communication
|
Sending concept or message to a large audience
|
|
|
Interpersonal communication
|
Direct, face to face communication between two or more people
|
|
|
Promotional goals
|
Informing Persuading Reminding Connecting |
|
|
Informing
|
Convert and an existing need into a want or to stimulate interest in a new product |
|
|
Persuading
|
Stimulate a purchase or an action
|
|
|
Reminding
|
Keep the product and brand name in the publics mind
|
|
|
Connecting
|
Getting customers to become brand advocates that promote the brand through their own social networks |
|
|
Integrated marketing Communications program (IMC)
|
Promotional mix
|
|
|
Advertising
|
Any form of impersonal PAID communication in which the sponsor or company is identified
|
|
|
Advantages of advertising
|
Repeat message to build long term image, very expressive, product is viewed as more legitimate , says something positive about the seller
|
|
|
disadvantages of advertising
|
INTERPERSONAL, not as persuasive as a sales person, can be very costly, one way communication , difficult to receive good feedback
|
|
|
Sales Promotion
|
A short term tool used to stimulate immediate increases in demand i.e, displays, discounts, coupons, demonstrations
|
|
|
Personal selling
|
A purchase situation involving a personal, paid for communication between two people in an attempt to influence each other
|
|
|
Advantages of personal selling
|
most effective for building preferences , convictions and actions, personal interaction, buyer feels a greater need to listen and respond, relationship developed
|
|
|
Disadvantages of personal selling
|
A sales force requires a longer term commitment, MOST EXPENSIVE promotional tool, messages between sales people may differ
|
|
|
AIDA concept
|
Attention, interest, desire , action: works with promotional mix
|
|
|
Types of buying decisions
|
Routine Complex |
|
|
Routine
|
ADVERTISING and SALES PROMOTION
|
|
|
Complex
|
PERSONAL SELLING
|
|
|
Push Strategy
|
A strategy used that uses aggressive personal selling and trade advertising to convince a wholesaler or retailer
|
|
|
Pull strategy
|
A marketing strategy that stimulates consumer demand to obtain product distribution
|
|
|
Setting Advertising Objectives-classified by primary purpose
|
Advocacy, pioneering, competitive, comparative
|
|
|
Setting the advertising budget
|
Affordable method Percent of sales method Competitive parity method Objective and task method |
|
|
affordable method
|
Often used by small businesses, lead to under-spending
|
|
|
Percent of sales method
|
Simple, wrongly views sales as the cause of promotion rather than the result
|
|
|
Competitive parity method
|
Match competitor's spending, ignores market demand and does not prevent promotion wars
|
|
|
Objective and task method
|
Define specific promotion objectives, determine what is needed to reach each objective, most difficult to implement but BEST APPROACH
|
|
|
Selection of execution style
|
Slice of life Lifestyle Spokesperson testimonial Humorous Fantasy Animated product symbols Mood or image Demonstration Musical Scientific |
|
|
Slice of life
|
Depicts people in normal settings
|
|
|
Lifestyle
|
Shows how well the product will fit in with the consumers lifestyle
|
|
|
Spokesperson testimonial
|
Features a celebrity, company official, or typical consumer making a testimonial or endorsing a product
|
|
|
Humorous
|
Using humor to get attentin
|
|
|
fantasy
|
Create a fantasy for a user built around using the product
|
|
|
Animated product symbols
|
Creates a character that represents the product
|
|
|
Mood or image
|
Builds a mood or image around the prod ut
|
|
|
Demonstration
|
Shows consumers the expected benefits
|
|
|
Musical
|
Conveys the message of the advertisement by song
|
|
|
Scientific
|
Uses research or scientific evidence to give a brand superiority over competitors
|
|
|
Cost per contact (cost per 1000th)
|
Cost of reaching one member of the target market |
|
|
Cost per click
|
Cost associated with a consumer clicking on a display or banner ad
|
|
|
Reach
|
Number of customers who are exposed to a commercial at least once during a specific time period |
|
|
Frequency
|
The number of times an individual is exposed to a given message during a specific time period
|
|
|
Audience selectivity
|
A mediums ability to reach a precisely defined market
|
|
|
Pulsing-have throughout the year
|
Continuous with bursts
|
|
|
Seasonal-strictly based on that time of year
|
Advertising only during times of the year when the product is most likely used
|
|
|
Public relations tools
|
New product publicity Product placement Consumer education Sponsorships Company website Corporate identity materials Public service activities Mobile marketing |
|
|
New product publicity
|
Print, video and online press releases added to paid advertising
|
|
|
Product placement
|
Getting a product, service or company name in an entertainment medium(movie,book, blog)
|
|
|
Consumer education
|
Free educational seminars provided by the company
|
|
|
Sponsorships
|
Money spent to support an issue, cause or event that is consistent with corporate objectives
|
|
|
Company website
|
Provide information , get consumer feedback, engage the public
|
|
|
Corporate identity materials
|
Logos, stationery, uniforms, buildings
|
|
|
Public service activities
|
Contribute time or money
|
|
|
Mobile marketing
|
Traveling promotional tours that bring the brand to consumers
|
|
|
Trade sales promotion tools-78% of manufacturer sales promotion budget is directed at wholesalers and retailers
|
Trade allowance Push money Training Free merchandise Store demonstrations Business meetings, conventions, tradeshows |
|
|
Trade allowance
|
Price reduction offered by manufacturers to intermediaries
|
|
|
Push money
|
Bonus for pushing manufacturers brand through the distribution channel
|
|
|
Training
|
intermediarys personnel are trained if the product is complex
|
|
|
Free merchandise
|
Extra product for buying a certain quantity or flavor
|
|
|
Store demonstration
|
Representatives offer customers in store samples while shopping
|
|
|
Business meetings, trade shows, conventions
|
Displaying goods or describing their services to potential customers
|
|
|
Consumer sales promotional tools
|
Coupons rebates premiums loyalty marketing programs contest, sweepstakes and games Samples Point of purchase promotion |
|
|
Coupons
|
Immediate price reduction, very commonly used, response rate 2%
|
|
|
Rebates
|
Cash refund given for purchasing a product during a specific period
|
|
|
Premiums
|
An extra item offered to the consumer, usually in exchange for some proof of purchase of the promoted product
|
|
|
loyalty marketing program
|
Build long term, mutually beneficial relationships between a company and its key customers
|
|
|
Contest
|
Requires participants to use some skill to compete for prizes
|
|
|
Sweepstakes
|
Only requires name and contact info
|
|
|
Games
|
Offer items with each purchase which may lead to prizes
|
|
|
***BONUS SAMPLES |
most effective, but MOST EXPENSIVE way to introduce a new product
|
|
|
Point of purchase promotion
|
Set up at the retailers location to build traffic, advertise the product, or induce impulse buying
|
|
|
Relationship selling
|
A sales practice that involves building, maintaining and enhancing interactions with customers to develop long term satisfaction through mutually beneficial partners
|
|
|
7steps in the selling process
|
Generating leads Qualifying leads Approaching the customer Developing and proposing solutions Handling objections Closing the sale Following up |
|
|
Generating leads
|
Identifying those firms and people most likely to buy the sellers offerings Referrals-typically are as much TEN times more productive in generating sales than are cold calls Networking- is using friends, business contacts, coworkers, acquaintances, and fellow members in professional and civic organizations to identify potential clients |
|
|
Qualifying leads
|
Determine a sales prospects recognized need, buying power, receptivity and accessibility. Usually based on financial ability, volume of business, special needs or location
|
|
|
Approaching the customer
|
Probing needs
|
|
|
Developing and proposing solutions
|
These are specific to the clients needs
|
|
|
Handling objections
|
Seek out, clarify and turn objections into reasons for buying
|
|
|
BONUS CLOSING THE SALE |
ask for the order, MOST DIFFICULT STEP
|
|
|
following up
|
Ensure the customer satisfaction and repeat business
|
|
|
Sales force structure
|
Territorial Products Customef Complex |
|
|
Territorial
|
Each person is assigned to an exclusive geographic area and sells the full product line. THIS IS OFTEN SUPPORTED BY MANH LEVELS OF SALES MANAGEMENT POSITIONS |
|
|
SELECTING AND TRAINING SALESPEOPLE
|
Ego strength Sense of urgency and competiveness Assertiveness Sociable Capable of understanding complex concepts and Ideas Risk takers Creativity Empathetic |
|
|
Compensation is a mix of
|
Fixed amount Variable amount Expense allowance Fringe benefits |
|
|
fixed amount |
Provided some stable Income
|
|
|
Variable amount
|
Commissions or bonuses based on sales performance
|
|
|
Expense allowance |
Repays salespeople for job related expenses
|
|
|
Fringe benefits
|
Paid vacations, sick leave, pensions, life insurance, education
|
|
|
The mix results in 4 basic compensation plans
|
Straight salary Salary plus bonus Salary plus commission Straight commission |
|
|
Social media
|
Any tool or service that uses the internet to silicate conversations
|
|
|
Social media campaigns
|
Owned media Earned media Paid media |
|
|
Owned media
|
Online content that an organization creates and controls
|
|
|
Earned media
|
A public relations term for free media such as mainstream media coverage
|
|
|
Paid media
|
Content paid for by a company to be placed online
|
|
|
Social media metrics
|
Buzz Interest Participation Search engine ranks and results Influence Sentiment analysis Website metrics |
|
|
Buzz
|
Volume of consumer created posers and impressions
|
|
|
Interest
|
Number of likes, fans, followers, friends
|
|
|
Participation
|
Number of comments, social books makers, uploads, posts, pins, tweets
|
|
|
Search engine ranks and results
|
Change based on keyword searches
|
|
|
Influence
|
Media mentions, bloggers reached, customers reached
|
|
|
Sentiment analysis
|
Positive, neutral, and negative comments
|
|
|
Website metrics
|
Clicks, click through rates and percentage of traffic
|
|
|
Social media users
|
Creators Critics Collectors Joiners Spectators Inactives |
|
|
The social median plan
|
1.listening stage 2.seg social media objectives 3.define strategies 4.identify the target audience 5.select the tools and platforms 6.implement and monitor the strategy |
|
|
The primary benefit to consumers
|
Receiving offers that closely match their interest
|
|
|
The primary benefit to sellers
|
Microtargeting selling efforts
|
|
|
Catalogs-most are now web based
|
Main problem- passive-must be marketed Solution-Print a concise version, drive attention to website |
|
|
What is a permission/no rebuttal state
|
Caller must ask for permission to continue and stop when requested
|
|
|
BONUS ENTITIY MOST OPPOSED DIRECT MAIL REGISTRY |
US POSTAL SERVICE
|
|
|
Profit margin
|
Profits/sales
|
|
|
Elastic demand
|
Consumer demand is sensitive to price changes Horizontal |
|
|
Inelastic demand
|
Increases or decreases in price will not significantly affect demand Vertical |
|
|
Demand elasticity
|
Total revenue remains the same when price changes : id renewal fee
|
|
|
Movement ALONG the demand
|
Change is due to internal factors
|
|
|
A SHIFT in the demand curve
|
Is due to external factors
|
|
|
Fixed costs
|
Does not change as output is increased or decreased
|
|
|
Variable costs
|
Varies with changes in the level of input
|
|
|
Price vs quality
|
Prestige pricing can be used to communicate high product quality
|
|
|
Break even volume
|
Fixed cost/(price-variable cost)
|
|
|
Price skimming
|
A company charges a high introductory price, often coped with heavy promotion
|
|
|
Penetration pricing
|
A company charges a relatively low price for a product initially as a way to reach the mass market
|
|
|
Status quo pricing
|
Charging a price identical to or very close to the competitors price
|
|
|
Value based bpricing
|
Setting the price at a level that seems good to the customer compared to other options
|
|
|
High low pricing
|
Most products priced at a premium with loss leader weekly specials-jewel
|
|
|
Predatory pricing
|
Charging a very low price for a product with the intent of driving competitors out of business , or out of a market
|
|
|
Two reasons for pricing products too low
|
Managers attempt to buy market share through aggressive pricing, EASILY COPIED Managers have a tendency to make decisions that can be justified OBJECTIVELY |
|
|
GEOGRAPHIC PRICING
|
FOB foraging pricing Uniformed delivered pricing Zone pricing Freight absorption pricing Based point pricing |
|
|
FOB foraging pricing
|
"free on board", buyer pays for shipping
|
|
|
Uniformed delivered pricing
|
Seller pays the actual freight charge and bills every purchaser an identical, flat freight charge
|
|
|
Zone pricing
|
Divides the united states into zones and charges a flat freight rate to all customers in a given zone |
|
|
Freight absorption pricing
|
The seller pays all or part of the actual freight charges and does not pass them onto the buyer
|
|
|
Based point pricing
|
Charges freight from a given point, regardless of the city from which the goods are shipped
|
|
|
BONUS WHY INCREASE PRICE? |
OVER DEMAND, LIMITED SUPPLY, HIGHER COSTS
|
|
|
Pricing strategies
|
Single price Flexible pricing Price lining Leader pricing Odd even pricing Price bundling Two part pricing By product pricing |
|
|
Single price
|
All goods and services offered at the same price
|
|
|
Flexible pricing
|
Different customers pay different prices for essentially the same merchandise bought in equal quantities
|
|
|
Price lining
|
Offering a product line with several items at specific prices
|
|
|
Leader pricing
|
A product is sold near or even below cost in hope that shoppers will buy other items once they are in the store-jewel 10for10
|
|
|
Odd even pricing
|
Using odd-numbered prices to connote bargains and even numbered prices to imply quality
|
|
|
Price bundling
|
Marketing two or more products in a single package for a special price
|
|
|
Two part pricing
|
Charging two separate amounts to consume a single good or service |
|
|
By product pricing
|
Setting a price for by-products to make the main products price more competitive
|
