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122 Cards in this Set
- Front
- Back
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Promotion
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communication by marketers that informs, persuades, and reminds potential buyers of a product in order to influence an opinion or elicit a response
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Promotional Strategy
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a plan for the optimal use of the elements of promotion: advertising, public relations, personal selling, sales promotion, and social media
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Competitive Advantage
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one or more unique aspects of an organization that cause target consumers to patronize that firm rather than competitors
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Promotional Mix
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the combination of promotional tools--including advertising, public relations, personal selling, sales promotion, and social media--used to reach the target market and fulfill the organization's overall goals
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Advertising
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impersonal, one-way mass communication about a product or organization that is paid for by a marketer
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Public Relations
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the marketing function that evaluates public attitudes, identifies areas within the organization the public may be interested in, and executes a program of action to earn public understanding and acceptance
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Publicity
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public information about a company, product, service, or issue appearing in the mass media as a news item
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Sales Promotion
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marketing activities-- other than personal selling, advertising, and public relations--that stimulate consumer buying and dealer effectiveness
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Personal Selling
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a purchase situation involving a personal, paid-for communication between two people in an attempt to influence each other
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AIDA Concept
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a model that outlines the process for achieving promotional goals in terms of stages of consumer involvement with the message; acronym stands for attention, interest, desire, and action
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Integrated Marketing Communications (IMC)
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the careful coordination of all promotional messages for a product or a service to ensure the consistency of messages at every contact point at which a company meets the consumer
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Advertising Response Function
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a phenomenon in which spending for advertising and sales promotion increases sales or market share up to a certain level but then produces diminishing returns
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Institutional Advertising
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a form of advertising designed to enhance a company's image rather than promote a particular product
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Product Advertising
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a form of advertising that touts the benefits of a specific good or service
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Advocacy Advertising
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a form of advertising in which an organization expresses its views on controversial issues or responds to media attacks
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Pioneering Advertising
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a form of advertising designed to stimulate primary demand for a new product or product category
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Competitive Advertising
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a form of advertising designed to influence demand for a specific brand
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Comparative Advertising
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a form of advertising that compares two or more specifically named or shown competing brands on one or more specific attributes
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Advertising Campaign
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a series of related advertisements focusing on a common theme, slogan, and set of advertising appeals
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Advertising Objective
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a specific communication task that a campaign should accomplish for a specified target audience during a specified period
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Advertising Appeal
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a reason for a person to buy a product
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Unique Selling Proposition
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a desirable, exclusive, and believable advertising appeal selected as the theme for a campaign
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Medium
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the channel used to convey a message to a target market
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Media Planning
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the series of decisions advertisers make regarding the selection and use of media, allowing the marketer to optimally and cost-effectively communicate the message to the target audience
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Infomercial
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a 30-mintue or longer advertisement that looks like a television talk show than a sales pitch
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Advergaming
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placing advertising messages in Web-based or video games to advertise or promote a product, service, organization, or issue
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Media Mix
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the combination of media to be used for a promotional campaign
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Cost per Contact (CPM)
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the cost of reaching one member of the target market
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Cost per Click
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the cost associated with a consumer clicking on a display or banner ad
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Reach
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the number of target consumers exposed to a commercial at least once during a specific period, usually four weeks
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Frequency
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the number of times an individual is exposed to a given message during a specific period
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Audience Selectivity
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the ability of an advertising medium to reach a precisely defined market
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Media Schedule
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designation of the media, the specific publications or programs, and the insertion dates of advertising
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Continuous Media Schedule
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a media scheduling strategy in which advertising is run steadily throughout the advertising period; used for products in the later stages of the product life cycle
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Pulsing Media Schedule
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a media scheduling strategy that uses continuous scheduling throughout the year coupled with a flighted schedule during the best scales periods
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Seasonal Media Schedule
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a media scheduling strategy that runs advertising only during times of the year when the product is most likely to be used
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Flighted Media Schedule
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a media scheduling strategy in which ads are run heavily every other month or every two weeks, to achieve a greater impact with an increased frequency and reach at those times
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Product Placement
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a public relations strategy that involves getting a product, service, or company name to appear in a movie, television show, radio program, magazine, newspaper, video game, video or audio clip, book, or commercial for another product; on the internet; or at special events
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Sponsorship
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a public relations strategy in which a company spends money to support an issue, cause, or event that is consistent with corporate objectives, such as improving brand awareness or enhancing corporate image
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Crisis Management
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a coordinated effort to handle all the effects of unfavorable publicity or another unexpected unfavorable event
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Consumer Sales Promotion
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sales promotion activities targeting the ultimate consumer
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Trade Sales Promotion
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sales promotion activities targeting a marketing channel member, such as a wholesaler or retailer
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Coupon
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a certificate that entitles consumers to an immediate price reduction when they buy the product
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Rebate
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a cash refund given for the purchase of a product during a specific period
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Premium
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an extra item offered to the consumer, usually in exchange for some proof of purchase of the promoted product
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Loyalty Marketing Program
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a promotional program designed to build long-term, mutually beneficial relationships between a company and its key customers
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Frequent Buyer Program
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a loyalty program in which loyal customers are rewarded for making multiple purchases of a particular good or service
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Sampling
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a promotional program that allows the consumer the opportunity to try a product or service for free
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Point-of-Purchase Display
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a promotional display set up at the retailer's location to build traffic, advertise the product, or induce impulse buying
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Trade Allowance
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a price reduction offered by manufacturers to intermediaries, such as wholesalers and retailers
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Push Money
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money offered to channel intermediaries to encourage them to "push" products--that is, to encourage other members of the channel to sell the products
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Relationship Selling
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a sales practice that involves building, maintaing, and enhancing interactions with customers in order to develop long-term satisfaction through mutually beneficial partnerships
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Sales Process
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the set of steps a salesperson goes through in a particular organization to sell a particular product or service
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Lead Generation
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identification of those firms and people most likely to buy the seller's offerings
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Referral
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a recommendation to a salesperson from a customer or business associate
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Networking
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a process of finding out about potential clients from friends, business contacts, coworkers, acquaintances, and fellow members in professional and civic organizations
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Cold Calling
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a form of lead generation in which the salesperson approaches potential buyers without any prior knowledge of the prospects' needs or financial status
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Lead Qualification
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determination of a sales prospect's (1) recognized need, (2) buying power, and (3) receptivity and accessibility
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Preapproach
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a process that describes the "homework" that must be done by a salesperson before he or she contacts a prospect
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Needs Assessment
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a determination of the customer's specific needs and wants and the range of options the customer has for satisfying them
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Sales Proposal
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a formal written document or professional presentation that outlines how the salesperson's product or service will meet or exceed the prospect's needs
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Sales Presentation
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a formal meeting in which the salesperson presents a sales proposal to a prospective buyer
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Negotiation
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the process during which both the salesperson and the prospect offer special concessions in an attempt to arrive at a sales agreement
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Follow-up
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the final step of the selling process, in which the salesperson ensures delivery schedules are met, goods or services perform as promised, and the buyers' employees are properly trained to use the products
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Price
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that which is given up in an exchange to acquire a good or service
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Revenue
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the price charged to customers multiplied by the number of units sold
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Profit
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revenue minus expenses
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Return on Investment (ROI)
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net profit after taxes divided by total assets
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Market Share
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a company's product sales as a percentage of total sales for that industry
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Status Quo Pricing
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a pricing objective that maintains existing prices or meets the competition's prices
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Demand
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the quantity of a product that will be sold in the market at various prices for a specified period
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Supply
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the quantity of a product that will be offered to the market by a supplier at various prices for a specified period
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Price Equilibrium
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the price at which demand and supply are equal
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Elasticity of Demand
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consumers' responsiveness or sensitivity to changes in price
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Elastic Demand
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a situation in which consumer demand is sensitive to changes in price
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Inelastic Demand
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a situation in which an increase or decrease in price will not significantly affect demand for the product
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Unitary Demand
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a situation in which total revenue remains the same when prices change
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Yield Management Systems
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a technique for adjusting prices that uses complex mathematical software to profitably fill unused capacity by discounting early purchases, limiting early sales at these discounted prices, and overbooking capacity
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Variable Costs
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a cost that varies with changes in the level of output
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Fixed Costs
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a cost that does not change as output is increased or decreased
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Average Variable Cost
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total variable costs divided by quantity of output
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Average Total Cost
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total costs divided by quantity of output
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Marginal Cost
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the change in total costs associated with a one-unit change in output
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Markup Pricing
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the cost of buying the product from the producer, plus amounts for profit and for expenses not otherwise accounted for
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Keystoning
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the practice of marketing up prices by 100%, or doubling the cost
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Profit Maximization
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a method of setting prices that occurs when marginal revenue equals marginal cost
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Marginal Revenue
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the extra revenue associated with selling an extra unit of output or the change in total revenue with a one-unit change in output
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Break-even Analysis
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a method of determining what sales volume must be reached before total revenue equals total costs
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Price Strategy
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a basic, long-term pricing framework that establishes the initial price for a product and the intended direction for price movements over the product life cycle
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Price Skimming
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a pricing policy whereby a firm charges a high introductory price, often coupled with heavy promotion
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Penetration Pricing
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a pricing policy whereby a firm charges a relatively low price for a product initially as way to reach the mass market
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Status Quo Pricing
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charging a price identical to or very close to the competition's price
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Unfair Trade Practice Acts
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laws that prohibit wholesalers and retailers from selling below cost
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Price Fixing
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an agreement between two or more firms on the price they will charge for a product
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Predatory Pricing
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the practice of charging a very low price for a product with the intent of driving competitors out of business or out of a market
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Base Price
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the general price level at which the company expects to sell the good or service
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Quantity Discount
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a price reduction offered to buyers buying in multiple units or above a specified dollar amount
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Cumulative Quantity Discount
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a deduction from list price that applies to the buyer's total purchases made during a specific period
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Noncumulative Quantity Discount
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a deduction from list price that applies to a single order rather than to the total volume of orders placed during a certain period
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Cash Discount
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a price reduction offered to a consumer, an industrial user, or a marketing intermediary in return for prompt payment of a bill
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Functional Discount
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a discount to wholesalers and retailers for performing channel functions
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Seasonal Discount
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a price reduction for buying merchandise out of season
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Promotional Allowance
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a payment to a dealer for promoting the manufacturer's products
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Value-Based Pricing
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setting the price at a level that seems to the customer to be a good price compared to the prices of other options
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FOB Origin Pricing
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a price tactic that requires the buyer to absorb the freight costs from the shipping point
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Uniform Delivered Pricing
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a price tactic in which the seller pays that actual freight charges and bills every purchaser an identical, flat freight charge
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Zone Pricing
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a modification of uniform delivered pricing that divides the United States into segments or zones and charges a flat freight rate to all customers in a given zone
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Freight Absorption Pricing
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a price tactic in which the seller pays all or part of the actual freight charges and does not pass them on to the buyer
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Basing-point Pricing
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a price tactic that charges freight from a given point, regardless of the city from which the goods are shipped
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Single-price Tactic
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a price tactic that offers all goods and services at the same price
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Flexible Pricing
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a price tactic in which different customers pay different prices for essentially the same merchandise bought in equal quantities
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Price Lining
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the practice for offering a product line with several items at specific price points
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Leader Pricing or Loss-leader Pricing
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a price tactic in which a product is sold near or even below cost in the hope that shoppers will buy other items once they are in the store
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Bait Pricing
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a price tactic that tries to get consumers into a store through false or misleading price advertising and then uses high-pressure selling to persuade consumers to buy more expensive merchandise
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Consumer Penalty
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an extra fee paid by the consumer for violating the terms of the purchase agreement
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Delayed-quotation Pricing
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a price tactic used for industrial installations and many accessory items in which a firm price is not set until the item is either finished or delivered
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Escalator Pricing
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a price tactic in which the final selling price reflects cost increases incurred between the time the order is placed and the time delivery is made
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Price Shading
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the use of discounts by salespeople to increase demand for one or more products in a line
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Two-part Pricing
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a price tactic that charges two separate amounts to consume a single good or service
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Odd-even Pricing
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a price tactic that uses odd-numbered prices to connote bargains and even-numbered prices to imply quality
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Price Bundling
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marketing two or more products in a single package for a special price
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Unbundling
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reducing the bundle services that comes with the basic product
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