Marketing Chapter 14

Front 1

Percentage-of-Sales Method

Back 1

set their promotion budget at a certain percentage of current or forecasted sales. Or they budget a percentage of the unit sales price.

Front 2

Competitive-Parity method

Back 2

Set their promotion budgets to match competitors’ outlays.

Front 3

Objective-and-Task Method

Back 3

Developing the promotion budget by (1) defining specific objectives; (2) determining the tasks that must be performed to achieve these objectives; and (3) estimating the costs of performing these tasks. The sum of these costs is the proposed promotion budget

Front 4

Push strategy

Back 4

A promotion strategy that calls for using the sales force and trade promotion to push the product through channels. The producer promotes the product to wholesalers the wholesalers promote to retailers, and the retailers promote to customers.

Front 5

Pull strategy

Back 5

A promotion strategy that calls for spending a lot on advertising and consumer promotion to build up consumer demand. If the strategy is successful, consumers will ask their retailers fro the product, the retailers will ask the wholesalers, and the wholesalers will ask the producers.

Front 6

Affordable method

Back 6

= set promotion budget at the level they think the company can afford

Front 7

Personal Communication channels

Back 7

= channels through which 2 or more people communicate directly with each other, including face to face, person to audience, over the telephone, or through the mail

Front 8

Buzz marketing

Back 8

= cultivating opinion leaders and getting them to spread information about a product or service to others in their communities

Front 9

Word-of-mouth influence

Back 9

personal communication about a product between target buyers and neighbors friends, family, etc

Front 10

Rational appeals

Back 10

Relate to the audience’s self-interest. They show that the product will produce the desired benefits. Ex. Messages showing a product’s quality, economy, value or performance

Front 11

Emotional appeals

Back 11

attempt to stir up either negative or positive emotions that can motivate purchase. Communicators may use positive emotional appeals such as love, pride, joy and humor.

Front 12

buyer-readiness stages

Back 12

the stages consumers normally pass through on their way to making a purchase (awareness, knowledge, liking, preference, conviction and purchase)

Front 13

Integrated marketing communications

Back 13

= The concept under which a company carefully integrates and coordinates its many communications channels to deliver a clear, consistent, and compelling message about the organization and its products.

Front 14

Marketing Communications Mix (aka Promotion Mix)

Back 14

= the specific mix of advertising, personal selling, sales promotion, and public relations a company uses.

Front 15

Advertising

Back 15

any paid form of non-personal presentation and promotion of ides, goods, or services by an identified sponsor

Front 16

Sales Promotion

Back 16

short-term incentives to encourage the purchase or sale of a product or service

Front 17

Public Relations

Back 17

building good relations with the company’s various publics by obtaining favorable publicity, building up a good corporate image, and handling or heading off unfavorable rumors, stories, and events

Front 18

Direct marketing

Back 18

= Direct connections with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationships- the use of telephone, mail, fax, email, the internet to communicate directly with specific consumers

Front 19

Personal selling

Back 19

Personal presentation by the firm’s sales force for the purpose of making sales and building customer relationships