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31 Cards in this Set

  • Front
  • Back
Source
a company or person who has information to convey.
Message
the information sent by a source to a receiver in the communication process.
channel of communication
the means (e.g., a salesperson, advertising media, or public relations tools) of conveying a message to a receiver.
Receivers
consumers who read, hear, or see the message sent by a source in the communication process.
Encoding
the process of having the sender transform an idea into a set of symbols.
Decoding
the process of having the receiver take a set of symbols, the message, and transform them back to an idea.
field of experience
a mutually shared understanding and knowledge that the a sender and receiver apply to a message so that it can be communicated effectively.
response
the impact the message had on the receiver’s knowledge, attitudes, or behaviors in the feedback loop.
Feedback
the sender’s interpretation
of the response and indicates whether a message was decoded and understood as intended.
Noise Noise
includes extraneous factors that can work against effective communication by distorting a message or the feedback received.
5 Elements of Promotion Mix
1.) Advertising
2.) Personal Selling
3.) Public Relations
4.) Sales Promotion
5.) Direct Marketing
Advertising
any paid form of non personal communication about an organization, good, service, or idea by an identified sponsor.
Personal Selling
the two-way flow
of communication between a buyer and seller, designed to influence a person’s or group’s purchase decision, usually in face-to-face communication between the sender and receiver.
Public Relations
a form of communication management that seeks to influence the feelings, opinions, or beliefs held by customers, prospective customers, stockholders, suppliers, employees, and other publics about a company and its products or services.
Sales Promotion
a short-term inducement of value offered to arouse interest in buying a good or service.
Direct Advertising
uses direct communication with consumers to generate a response in the form of an order, a request for further information, or a visit to a retail outlet.
5 Factors affecting Use of Promotion Mix Elements
1.) Target audience
2.) Product Life Cycle
3.) Product Characteristics
4.) Stage of Buying Decision
5.) Channel Strategy
What are the 4 stages of the Product Life Cycle?
1.) Introduction
2.) Growth
3.) Maturity
4.) Decline
What are the 3 product characteristics?
1.) Complexity
2.) Risk
3.) Ancillary services
What are the 3 stages of buying decision?
1.) Pre-purchase stage
2.) Purchase stage
3.) Post-purchase stage
What are the 2 channel strategies?
1.) Push
2.) Pull
4 W's of Advertising Program
a.) Who is the target audience?

b.) What are (1) the promotional objectives? (2) the amounts of money that can be budgeted for the promotion program, and (3) the kinds of promotion to use?

c.) Where should the promotion be run?

d.) When should the promotion be run?
4 Ways to Set Promotion Budget
1.) Percentage of sales budgeting
2.) Competitive parity budgeting
3.) All-you-can-afford budgeting
4.) Objective and task budgeting
Percentage of sales budgeting
consists of allocating funds to promotion as a percentage of past or anticipated sales, in terms of either dollars or units sold.
Competitive parity budgeting
consists of allocating funds to promotion by matching the competitor’s absolute level of spending or the proportion per point of market share. Also called matching competitors or share of market.
All-you-can-afford budgeting
consists of allocating funds to promotion only after all other budget items are covered.
Objective and task budgeting
consists of allocating funds to promotion whereby the company:

1.) determines its promotion objectives

2.) outlines the tasks to accomplish these objectives

3.) determines the promotion cost of performing these tasks.
3 Types of Direct Marketing
1.) Direct Orders
2.) Lead Generation
3.) Traffic Generation
Direct Orders
the result of direct marketing offers that contain all the information necessary for a prospective buyer to make a decision to purchase and complete the transaction.
Lead Generation
the result of a direct marketing offer designed to generate interest in a product or a service and a request for additional information.
Traffic Generation
the outcome of a direct marketing offer designed to motivate people to visit a business.