Study your flashcards anywhere!

Download the official Cram app for free >

  • Shuffle
    Toggle On
    Toggle Off
  • Alphabetize
    Toggle On
    Toggle Off
  • Front First
    Toggle On
    Toggle Off
  • Both Sides
    Toggle On
    Toggle Off
  • Read
    Toggle On
    Toggle Off

How to study your flashcards.

Right/Left arrow keys: Navigate between flashcards.right arrow keyleft arrow key

Up/Down arrow keys: Flip the card between the front and back.down keyup key

H key: Show hint (3rd side).h key

A key: Read text to speech.a key


Play button


Play button




Click to flip

27 Cards in this Set

  • Front
  • Back
Diminishing Returna Model
Model with a concave-downward shape, demonstrating that advertising expenditures will increase sales to a point, after which the benefits of additional advertising expenses will diminish.
S-Shaped Curve Model
Model in the shape of a S, demonstrating that initial outlays of advertising will have little or no impact on consumers in the early stages of sales.
Top-down Model
Budgeting methods in which the highest management level of the firm establishes the amount for the entire retail corporation or manufacturing concern.
All one can afford
Budgeting method in which the portion of the operational budget allocated to promotional activities is the amount the firm can financially manage to spend.
Arbitrary allocation
Budget is determined by management solely on the basis of execution judgement.
Competitive parity
The amount of money that a competitor spends on promotion is used as a guide to set budgets.
Clipping Service
Cuts out competitors' advertisements from local or national print media to trac spending.
Percentage of Sales
The promotion budget is based on a specific percentage of anticipated annual sales.
ROI- Return on Investment
Advertising and promotion are considered investments that will lead to some type of long-term return.
Bottom-up approaches
Consider a firms' goals and objectives and assign a portion of the budget to meet those objectives.
Objective and Task
Budget is created based on planning objectives.
Payout Planning
Used for the intro of new products, requiring 1.5 to 2 times as much promo expenditure as an existing product.
Quantitative mathematical models
Techniques involving multiple regression analysis used to analyze the relationship of variables to the relative contributions of promotional activities to sale.
Legal agreement establishing a fee for limited services based specific activities.
Fixed-Fee Rate
Basic monthly rate charged by an agency for all of its services.
Fee-commission combination
Fee system in which media commissions are credited against a fee.
Cost-plus agreement
Pay rate based upon cost of the work plus an agreed-on profit margin, normally a percentage of total costs.
Percentage Charges
Method of compensating an agency by adding a markup to costs for work done by outside suppliers.
Incentive-based compensation
Compenstation system that ties payments to performance.
Event Bonus
Premium paid above the fixed fee, if the attendance goal for an event is exceeded.
Media Savings
A share of the money saved by one agency over another in media placement.
Unit Sales Incentive
A base fee and a bonus for unit sales above the goal or target sales.
Cooperative efforts whereby a manufacturer and retailer join forces to increase the revenuse and profits for both parties.
Cooperative effort in which a card issuer that wants to increase volume combines with a consumer company to develop a credit card.
Cooperative Advertising
Agreement in which a manufacturer works with a retailer to develop an ad and shares in the cost of running that advertisement.
Cooperative Promotion
Activities jointly planned and paid for by two members of the distribution channel.
Strategic alliance
Partnership between a manufacturer and a retailer working in a particular supply chain that leverages the core competencies of each firm.