Intro To Business Chapter 14

Front 1

promotion

Back 1

techniques marketers use to inform targeted customers of the benefits of a product and persuade them to purchase a good, a service, or an idea

Front 2

promotional mix

Back 2

strategic combination of these promotional tools used to reach targeted customers to achieve marketing objectives

Front 3

basic steps involved in a promotional campaign

Back 3

1. Identify the target market
2. Determine marketing objectives-trying to maximize profits, sales, or market share?
3. Design the message-inform customers of the benefits of a business's product
4. determine the budget
5. Implement the promotional mix
6. Evaluate and adjust as needed

Front 4

Integrated marketing communications (IMC)

Back 4

strategy to deliver a clear, consistent, and unified message about a company and its products to customers at all contact points

Front 5

different types of advertising
1. Product advertising
2. Corporate advertising
3. Comparative advertising
4. Retail advertising
5. B2B advertising
6. Nonprofit advertising
7. Public service advertising
8. Advocacy advertising
9. Interactive advertising
10. Internet advertising

Back 5

1. Product advertising-promotes a specific product's uses, features, and benefits
2. Corporate advertising-focuses on creating a positive image toward an organization or an entire industry as opposed to a specific product
3. Comparative advertising-compares a brand's characteristics with those of other established brands
4. Retail advertising-focuses on attracting customers to a fixed location
5. B2B advertising-directed to other businesses rather than to consumers
6. Nonprofit advertising-focuses on promoting not-for-profit organizations
7. Public service advertising-communicates a message on behalf of a good cause
8. Advocacy advertising-promotes an organization's position on a public issue
9. Interactive advertising-uses interactive media
10. Internet advertising-uses pop-up and banner ads and other methods to direct people to organization's web site

Front 6

Advantages and Disadvantages of Advertising Media

Back 6

Television
ad-good mass-market coverage
dis-high cost; low recall; channel surfing
Newspaper
ad-timing and geographic flexibility
dis-short life span; lots of competition for attention
Magazine
ad-high market segmentation; high-quality
dis-declining readerships; high cost
radio
ad-high geographic and demographic selectivity
dis-low attention span; short exposure time
Internet
ad-Global and interactive possibilities
dis-audience controls exposure; clutter on each site
Social Media
ad-relatively inexpensive to set up; immediate feedback
dis-can be difficult to monitor
outdoor
ad-able to select key geographic areas
dis-short exposure time
direct mail
ad-high levels of segmentation; allows personalization
dis-hih cost; can be rejected as jiunk mail
Yellow Pages
ad-inexpensive; commonly used and accessible
dis- costly for a very small business

Front 7

infomercials

Back 7

commercials that runs longer than traditional ones

Front 8

public relations

Back 8

management function that establishes and maintains mutually beneficial relationships between an organization and its stakeholders, including consumers, stock holders, employees, suppliers, the government, and the public in general

Front 9

public relations tools to build a positive business image

Back 9

-controlled messages-corporate advertising, advocacy advertising, and public service advertising
-semicontrolled messages-placed on Web sites, in chat rooms, and on blogs
-uncontrolled messages-take the form of publicity

Front 10

publicity

Back 10

information about an individual, or an organization, or a product transmitted through mass media at no charge

Front 11

personal selling

Back 11

direct communication between a firm's sales force and potential buyers to make a sale and build good customer relationships

Front 12

different types of salespeople

Back 12

1. order getters-salesperson who increases a company's sales by selling to new customers and increasing sales to existing customers
2. order takers-salesperson who handles repeat sales and builds positive customer relationships
3. support personnel-salespeople who obtain new customers but also focus on assisting current customers with technical matters

Front 13

prospecting

Back 13

to identify qualified potential customers
two ways:
preapproach-salespeople learn much as possible of customer
actual approach-meet, greet/ first impression

Front 14

sales promotion

Back 14

short-term activities that target consumers and other businesses for the purpose of generating interest in a product

Front 15

trade sales promotions

Back 15

incentives to push a product through the distribution system to final consumers

Front 16

consumer sales promotion

Back 16

incentives designed to increase final consumer demand for a product

Front 17

consumer sales promotional tools

Back 17

1. coupons
2. rebates
3. frequent-user incentives
4. point-of-purchase (POP) display
5. free samples
6. contests and sweepstakes
7. advertising specialties

Front 18

Advantages and disadvantages of promotional tools

Back 18

Advertising
ad-builds brand awareness, reaches a mass audience
dis-expensive, impersonal
Public relations
ad-often seen as more credible than advertising, inexpensive way of reaching many customers
dis-risk of losing control, cannot always control what other people write about their product
Personal selling
ad-highly interactive communication between the buyer and the seller, good for building customer relationships and closing a sale
dis-expensive, not suitable if there are thousands of buyers
Sales Promotions
ad-can stimulate quick increases in sales by targeting promotional incentives on particular products, good short-termed tactical tool

Front 19

distribution

Back 19

-process that makes products available to consumers when and where the consumers want them.

Front 20

supply chain

Back 20

encompasses all the components both inside and outside an organization that are necessary to convert raw materials into a good or a service and then get it into the hands of customers

Front 21

supply chain management

Back 21

managing the entire process of getting products out the door and eventually into the hands of final consumers

Front 22

Supply chain can be divided into three flows:

Back 22

1. product flow-traces the product itself- from raw resources to finished product and final delivery to the customer
2. information flow-traces all the information about a product as it moves through the process
3. financial flow-traces payment schedules, credit terms, and any other additional financial arrangements that may be necessary

Front 23

distribution channel

Back 23

set of marketing intermediaries who buy, sell, or transfer title (or ownership) of products as they are passed from producer to consumer or business user

Front 24

marketing intermediary

Back 24

business or person that moves goods and services between producers and consumers or between business users

Front 25

different types of intermediaries:
-wholesalers
-agents/brokers
-retailers

Back 25

-wholesalers-intermediaries that
-agents/brokers-intermediaries that facilitate negotiations between buyers and sellers of goods and services but never take title of the products traded
-retailers-intermediaries that buy products for resale to consumers

Front 26

e-commerce

Back 26

buying and selling on the internet

Front 27

merchant wholesalers

Back 27

independently owned businesses that take ownership of the products they handle
-full-service wholesalers-provide a full line of services
-limited-service wholesalers-offer fewer services than full-service wholesalers

Front 28

cash-and-carry wholesalers

Back 28

carry a limited line of fast-moving goods and sell to small retailers for cash

Front 29

truck wholesalers

Back 29

sell and deliver directly from their trucks

Front 30

drop shippers

Back 30

dont carry inventory or handle products. on receiving an order, they select a manufacturer, who ships the merchandise directly to the customer

Front 31

rack jobbers

Back 31

service grocery stores and drug retailers, mostly nonfood items

Front 32

agents/brokers

Back 32

Facilitate buying and selling
Do not take title to products
Typically earn a commission on the sale
Agents are hired on a more permanent basis than brokers are

Front 33

3 common types of agents:
1. Manufacturers' agents
2. Selling agents
3. Purchasing agents

Back 33

1. Manufacturers' agents-can represent two or more manufacturers of complementary lines
2. Selling agents-have contractual authority to sell a manufacturer's entire product line
3. Purchasing agents-generally have long-term relationships with buyers and make purchases for them, often receiving, inspecting, warehousing, and shipping the merchandise to buyers

Front 34

corporate chain stores

Back 34

two or more retail outlets owned by a single corporation

Front 35

nonstore retailing

Back 35

form of retailing in which a customer contact occurs outside the confined of a traditional brick-and-mortar retail store

Front 36

telemarketing

Back 36

selling products over the phone

Front 37

direct selling

Back 37

selling goods and services door-to-door at people's homes and offices or at temporary or mobile locations

Front 38

direct marketing

Back 38

any aspect of retailing a good or a service that attempts to bypass intermediaries

Front 39

electronic retailing

Back 39

seling of consumer goods and services over the internet

Front 40

intensive distribution

Back 40

product sold through all available retail outlets

Front 41

selective distribution

Back 41

uses only a portion of the many possible retail outlets for selling products

Front 42

exclusive distribution

Back 42

uses only one outlet in a geographic area

Front 43

logistics

Back 43

managing the flow of materials, information, and processes that are involved in getting a product from its initial raw stages to the point of consumption

Front 44

routing

Back 44

way in which goods are transported

Front 45

warehousing

Back 45

storing products at convenient locations ready for customers when they are needed