Marketing-Final -Set #2

Front 1

advertising manager's specific objectives

Back 1

1. help position firm's brand or marketing mix by informin and persouading target cutoers or middlemen about its beneifts
2. help introduce new products to specific target markets
3. help obtain desirable outles and tell cutomser where they can buy a product
4. ongoing contact w/ target customers
5. prepare way for salespeopel by presenting the company's name and the merits of it s prodcuts
6. get immediate buying action
7. help maintain relationships w/ satisified customers and encourage more purchases

Front 2

product advertisin

Back 2

tries to sell a product

Front 3

institutional advertising

Back 3

tries to promote an organization's image, reputation, or ideas rather than a specific product

Front 4

pioneering advertising

Back 4

tries to develop primary demannd for a product category rather than demand for a specific brand; usualy one in early stage of the product life cycle

Front 5

competitive advertising

Back 5

develop selective demand for a specific brand-in order to hold its own against competitors
-direct type:aims for immediate buying action
-indirect type: points out proudct advantages to affect future buying decisions

Front 6

comparative advertising

Back 6

making specific brand comparisons-uaing actual product names (allowed b/c would increase competiton and provide consumers with more useful info)
-can jsust keep running test until they get the restult they want, or talk about minor differences.
-can backfire by calling attention to competing products that consumrs had not previously considered

Front 7

reminder advertising

Back 7

keep the product's name before hte public; reinforces a favorable relationship;

Front 8

institutional advertising

Back 8

focuses on the name and prestige of an organizaton or industry
-rely on this to present caompny in a good light (maybe to overcome image problems)

Front 9

advertising allowances

Back 9

price reductions to firms rfurther along in the channel to encourage them to advertise or otherwise promote the firm's prdoucts locally

Front 10

cooperative advertising

Back 10

involeves midllemen adn producers sharing in the cost of ads. helps hwholesalers and retailers compete in their local markets.

Front 11

context advertising

Back 11

monitoring the content a net surfer is viewing and then servin g up related ads

Front 12

pointcasting

Back 12

displayign an ad only to an indiividual who meets certain qualifications, erhaps a person who has previously expressed direct interste in the otpic of the advertising

Front 13

"clickthrough"

Back 13

number of peopel who actually click on the ad and link tot he advertiser's webiste

Front 14

copy thrust

Back 14

what the words and illustrations should communiate

Front 15

AIDA concept

Back 15

getting Attention, holding Interst, arousing Desire, obtainin Action

Front 16

direct-response ads

Back 16

help promote action in AIDA model . consuemrs to do somethign even if not ready to make a purchase. follow-up brochrues, telephone salesperson ; provide the kind of ino buyers need to confirm the correctness of their decisions.

Front 17

advertisign agencies

Back 17

specialists in planning and handling mass-selling details for advertisers
-big ones get more customers
-small ones-appeal to customers who want more personal attention and a close relationship that is more attuned to their marketing needs
-paid 15% comission (many receive labor-based fee)
-pay depends on the grade.

Front 18

corrective advertising

Back 18

ads to correct deceptive advertiising (health warnng on cigarettes)

Front 19

pricing situations

Back 19

-what price situations the pfirm will face, how it will handle them
explain 1 how flexible prices will be
at what level they will be set over the product life cycle
to whom and when discounts and allowances will be given
 how transportation costs will be handled

Front 20

price

Back 20

amt. of money that is charged for "somethign" of value

Front 21

target return objectve

Back 21

seta s pecific level of profit as an ogjective. (usually stated as percentage of sales or of captial investment)

Front 22

profit maximization objective

Back 22

seseks to get as much profit as possible

Front 23

sales-orientted objective

Back 23

seeks some level of unit sales, dollar sales, or share of market (w/o referring to profit)

Front 24

status quo objectives

Back 24

dont' rock the pricing boat objectives, stabilize prcies, meet competition, avoid competition (most common when total market is not growing)

Front 25

nonprice competitions

Back 25

aggressive action on onre or more of the Ps other than price.

Front 26

skimming price policy

Back 26

tries to sell the top o (skim the cream) of a market-the top of the demand curve-at a high price before aiming at more price-sensitve customers (only useful when you dont 'know very much ab ut the shape of the demand curve); some say you shouldnt' do this on iimportatn stuff like medicine

Front 27

penetration pricing policy

Back 27

tries to sell the whole market at one low price (might be wise when the elite market-those wiling to pay a high price-is small)
-even more attractive if selling larger quantities results in lower costs b/c of economies of scale-->wise if the firm expects strong compettiion very soon after introduction

Front 28

introductory price dealing

Back 28

temporary price cuts-to speed new prdoucts into a market and get customres to try them. ; raise prcies as soon as the introductory offer is over.

Front 29

unfair trade practice acts

Back 29

put a lower limit on prices, especially at the whole sale and retiil levels. ; selling below cost in some states is illegal

Front 30

dumping

Back 30

pricing a product sold in a foreign market below the cost of producing it or at a price lower than in its domest c market (happened w/ US stelel producers pushed for tarfiffs b/c oversease stell mills),

Front 31

Wheeler Lea Amendment

Back 31

bans "unfair o"or depceptives acts in commerce

Front 32

price fixing

Back 32

competitors getting atogether to raise, lower, or stabilize prices-is common and relatively easy, But it is also completely illegal in the US

Front 33

Robinson-Patman Act (of 1936)

Back 33

makes illegal any price discrimination if it injures competition

Front 34

price discrimination

Back 34

-selling the same prdoducts to different buyers at different prices
-allows to charge different prices if they are not of "like grade and quality" (well-known label alone doesn't make product different.
-allows price differences if there are cost differences (like larger quantity shipments, or middlemen take over some of physical distribution fucntions)--.justification must be developed before different prices are set

Front 35

you can have price differences but. .must be based on

Back 35

-cost differences
-the need to meet competition

Front 36

mark up

Back 36

a dollar amount added tot eh cost of products to get the selling price

Front 37

markup (percent)

Back 37

means percentage of selling price that is added to the cost to get the selling price

Front 38

standard mark up is often set close

Back 38

to the firm's gross margin

Front 39

markup chain

Back 39

sequence of markups ffirms use at diff. levels in a channel-determine the prcie strucutre in the whole channel .

Front 40

stokcturn rate

Back 40

number of times the average inventory is sold in a yera. (low stockturn rate may be bad for profits)

Front 41

average-cost pricing

Back 41

adding a resaonable markup to the average cost of a product
-problem:doesn't consider cost variations at diff. levels of output.
-problem: ignores cometitors' costs and prices

Front 42

average cost (per unit)

Back 42

obtained by dividing total cost by the related quantity (that is, the total quantity that causes the total cost)

Front 43

average fixed cost (per unit)

Back 43

obtianed by dividng total fixed cost by the related quantity

Front 44

average variable cost (per unit)

Back 44

obtiaed by dividing total variable cost by the related qunaitty

Front 45

experience curve pricing

Back 45

average-cost pricing using an estimate of future average costs