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119 Cards in this Set
- Front
- Back
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Integrated marketing communications
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Coordination of promotion and other marketing efforts for maximum informational and persuasive impact
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Source
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A person, group, or organization with a meaning it tries to share with a receiver or an audience
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Feedback
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The receiver's response to a decoded message
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Receiver
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The individual, group, or organization that decodes a coded message
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Noise
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Anything that reduces a communication's clarity and accuracy
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Primary demand
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Demand for a product category rather than for a specific brand
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Selective demand
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Demand for a specific brand
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Advertising
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Paid nonpersonal communication about an organization and its products transmitted to a target audience through mass media
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Sales promotion
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An activity and/or material intended to induce resellers or salespeople to sell a product or consumers to buy it
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Public relations
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Communication efforts used to create and maintain favorable relations between an organization and its stakeholders
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Personal selling
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Paid personal communication that attempts to inform customers and persuade them to buy products in an exchange situation
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Arbitrary approach
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Budgeting for an advertising campaign as specified by a high-level executive in the firm
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Advertising platform
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Basic issues or selling points to be included in an advertising campaign
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Artwork
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An advertisement's illustrations and layout
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Copy
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The verbal portion of advertisements
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Storyboard
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A blueprint combining copy and visual material to show the sequence of major scenes in a commercial
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Layout
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The physical arrangement of an advertisement's illustration and copy
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Pretest
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Evaluation of advertisements performed before a campaign begins
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Post-test
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Evaluation of advertising effectiveness after the campaign
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Aided recall test
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A posttest that asks respondents to identify recent ads and provides clues to jog their memories
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Unaided recall test
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A posttest in which respondents are asked to identify ads they have recently seen but are given no recall clues
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Recognition test
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A posttest in which respondents are shown the actual ad and asked if they recognize it
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Missionary salespeople
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Support salespeople, usually employed by a manufacturer, who assist the producer's customers in selling to their own customers
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Premium
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An item offered free or at a minimal cost as a bonus for purchasing a product
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Rebate
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A sales promotion technique in which a consumer receives a specified amount of money for making a single product purchase
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Fixed costs
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Costs that do not vary with changes in the number of units produced or sold
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Variable costs
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Costs that vary directly with changes in the number of units produced or sold
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Price competition
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Emphasizing price as an issue and matching or beating competitors' prices
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Nonprice competition
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Emphasizing factors other than price to distinguish a product from competing brands
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Demand curve
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A graph of the quantity of products expected to be sold at various prices if other factors remain constant
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Price elasticity of demand
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A measure of the sensitivity of demand to changes in price
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Internal reference price
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A price developed in the buyer's mind through experience with the product
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External reference price
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A comparison price provided by others
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Seasonal discount
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A price reduction given to buyers for purchasing goods or services out of season
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Cumulative discount
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A quantity discount aggregated over a stated period
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Quantity discount
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A deduction from list price for purchasing in large quantities
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Cash discount
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A price reduction given to buyers for prompt payment or cash payment
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Markup pricing
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Adding to the cost of the product a predetermined percentage of that cost
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Penetration pricing
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Setting prices below those of competing brands to penetrate a market and gain a significant market share quickly
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Price skimming
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Charging the highest possible price that buyers who most desire the product will pay
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Price lining
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Setting a limited number of prices for selected groups or lines of merchandise
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Differential pricing
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Charging different prices to different buyers for the same quality and quantity of product
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Coding Process (Encoding)
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the converting meaning into a series of signs or symbols
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Communication Channel
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the medium of transmission that carries the coded message from the source to the receiver or audience
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Decoding Process
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the conversion of signs or symbols into concepts and ideas
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Advertising is an essential part of the promotion of highly personal products because
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buyers dislike talking to salespeople about such products
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The coding process is
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the conversion of meaning into signs or symbols that represent ideas
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Four possible ingredients of a promotion mix are advertising, personal selling, public relations, and sales promotion
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True
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________ informs potential customers about the product: what it is, what it does, how it can be used, and where it can be purchased
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Pioneer promotion
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Steve Roberts of Roberts Auto Sales states in his television commercial that his cars are "bad." Seeing this, viewer Calvin Peters wonders why any of these cars are sold. This situation is an example of a communication problem stemming from the absence of
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Shared Meaning
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The set of promotional efforts a firm uses constitutes the firms
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Promotion Mix
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Frequent-user programs help retain loyal customers
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True
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A broad set of communication efforts used to create and maintain favorable relationships between and organization and its public is
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Public Relations
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Linking the purchase of an organization's products to support of charitable organizations favored by target market members is called
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Cause-related marketing
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Which of the following is a characteristic of sales promotion?
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It may be aimed at either final consumers or trade people
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The kind of advertising that promotes organizational images, ideas, or political issues is _________ advertising
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Institutional
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An advertising campaign may be handled by
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All of the above
-an individual inside the firm -a few key persons inside the firm -an advertising department inside the firm -an outside advertising agency |
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In the competition-matching approach, marketers usually are concerned about the type and intensity of competitors' advertising.
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True
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Reinforcement advertising is focuses on consumers who
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Already use the advertised brand
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Comparative advertising is MOST LIKELY to be used for brands that are
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Attempting to compete with market leaders
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________ is transmitted through the mass media at no charge
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Publicity
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The effectiveness of public relations can be evaluated on the basis of how many releases are published or broadcast
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True
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A television commercial demonstrating the versatility of the Mercedes sports utility vehicle is called
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product advertising
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A statement that indicates a firms current condition or position is commonly known as a
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benchmark
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___________ advertising points out a brand's uses, features, and advantages that benefit consumers but may not be available in other brands.
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Competitive
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Personal selling is an important marketing function because it
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lets marketers zero in on the most promising sales prospects
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The ______ is being used when a salesperson calls on potential customers without their prior consent
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cold canvass technique
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Both experienced salespeople and new salespeople require sales training
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True
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Salespeople who direct much of their effort toward helping customers promote products are called _________ salespeople.
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trade
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When a sales manager builds an applicant list for sales positions, the manager is
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recruiting
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A ________ is a temporary price reduction made to resellers by a producer for purchasing specified quantities of a product
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buying allowance
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Enjoyable working conditions, power and authority, job security, and opportunity to excel are examples of
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effective sales force motivators
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This Tuesday, Teresa Diaz has a sales trainee riding with her. She states that today will be her first call on Dunbolt Electronics. She explains that in the approach phase of this call her goal, as usual, will be to
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gather information
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Stimulation of customer loyalty is MOST LIKELY when which of the following is used?
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Frequent-user incentives
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Price reductions given to buyers who pay promptly are called ______ discounts
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Cash
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Elasticity of demand describes
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changes in demand that result from changes in price
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A discount given to a buyer for performing activities such as transporting, storing, and selling is known as a _______ discount
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Trade
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Companies in a volatile environment may use pricing as a flexible marketing strategy because price is
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the only variable in the marketing mix that can be quickly adjusted
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_______ help marketing managers determine the demand for a product.
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Marketing researchers
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The demand curve illustrates the effect of
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one variable, price, on the quantity demanded
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A firm may temporarily sell products below cost to
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increase market share
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If Reebok wants to focus its marketing efforts on price competition, the firm's long-range success will depend on having
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a lower cost structure than its competitors
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In using a cost-based pricing method, a firm determines price
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by adding a dollar amount or a percentage to the cost of the product
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The steps involved in the process of establishing a price include all of the following EXCEPT
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setting the demand
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When marketers employ a product-line pricing strategy, their main goal is to
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optimize profits for an entire product line
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When Idaho Technology introduced its line of solar-powered watches, it initially set the price quite high but lowered the price as competitors entered the market. Which of the following describes the pricing strategy initially used by Idaho Technology?
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Price skimming
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Which type of pricing strategy is based on the "isolation effect" (the idea that an item looks more attractive when it appears with more expensive alternatives)?
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Reference pricing
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Pricing objectives influence decisions in most functional areas and must be consistent with an organization's overall goals.
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True
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Holiday Inn prices its rooms so that it is less expensive to stay on weekends than during the week when their is heavy business travel. This illustrates which type of pricing method?
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demand-based
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Negotiated pricing is
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establishing a final price through bargaining
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Institutional advertising promotes
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Company image
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Which type of publicity is defined as a meeting used to announce major news events?
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Press conference
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The first step in the development of an advertising campaign is to
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Identify and analyze the target audience
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________ advertising points out a brand's uses, features, and advantages that benefit consumers but may not be available in other brands
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Competitive
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Marketers at Maytag are determining what proportion of the budget they will spend on magazine, television, and radio advertisements based on the cost and effectiveness of each. The schedule created by the Maytag marketers is called a(n) ___________ plan.
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media
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Artwork in advertisements consists of
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the illustration and the layout
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Informing customers and persuading them to purchase a product through personal communication in an exchange situation is called
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Personal Selling
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The prospect is asked to buy the product in which step of the personal selling process?
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Closing
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Two types of order getters are
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current customer salespersons and new-business salespersons
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Which of the following statements is considered a DISADVANTAGE of the straight commission compensation method?
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Selling costs are less predictable
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New England Foods is using sales promotion to motivate wholesalers and retailers to carry a new salad dressing. What type of sales promotion is the company using?
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Trade sales promotion
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DISADVANTAGES of ______ include inability to attract potentially brand-loyal customers, fraudulent usage, and usage by current customers rather than new ones.
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coupons
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Which of the following sales promotion methods is used to motivate distributors, retailers, and sales personnel through recognition of outstanding achievements?
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Sales contest
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The communication process begins with a person, group, or organization that is called a(n)
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source
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Creating product awareness is an important promotion objective for an organization that is
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introducing a new product or brand
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The four possible elements of a promotion mix are
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advertising, personal selling, public relations, and sales promotion
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An individual, group, or organization that decodes a coded message is
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a receiver
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As Nancy Craig prepares the script for a radio commercial for her bookstore, she is in which stage of the communication process?
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coding
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Pioneer promotion helps to stimulate
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primary demand
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A broad set of communication efforts used to create and maintain favorable relationships between an organization and its stakeholders is called
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Public relations
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Contests, free samples, and coupons are types of
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sales promotion techniques
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What type of products go along with Personal Selling?
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-Business products
-Consumer durables -Exclusive distribution, high-price products |
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What type of products go along with Advertising?
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-consumer goods
-seasonal products -highly personal products -convenience items -intensive distribution, low-price products |
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What type of products go along with Public Relations?
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-business products
-consumer products |
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What type of products go along with Sales Promotion?
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-Consumer convenience products
-highly seasonal products |
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What is the order of Push Policy?
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Producer->wholesalers->retailers->consumers
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What is the order of Pull Policy?
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Producer-wholesalers-retailers-consumers
producer->consumer |
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FTC Act: Federal Trade Commission Act (1914)
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Federal Trade Commission Act (1914); created the Federal Trade Commission; also give the FTC investigatory powers to be used in preventing unfair methods of competition
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Wheeler-Lea Act: (1938)
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Prohibits unfair and deceptive acts and practices regardless of whether competition is inured; places advertising of foods and drugs under jurisdiction of FTC
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