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45 Cards in this Set

  • Front
  • Back
advertising manager's specific objectives
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
product advertisin
tries to sell a product
institutional advertising
tries to promote an organization's image, reputation, or ideas rather than a specific product
pioneering advertising
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
competitive advertising
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
comparative advertising
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
reminder advertising
keep the product's name before hte public; reinforces a favorable relationship;
institutional advertising
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)
advertising allowances
price reductions to firms rfurther along in the channel to encourage them to advertise or otherwise promote the firm's prdoucts locally
cooperative advertising
involeves midllemen adn producers sharing in the cost of ads. helps hwholesalers and retailers compete in their local markets.
context advertising
monitoring the content a net surfer is viewing and then servin g up related ads
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
number of peopel who actually click on the ad and link tot he advertiser's webiste
copy thrust
what the words and illustrations should communiate
AIDA concept
getting Attention, holding Interst, arousing Desire, obtainin Action
direct-response ads
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.
advertisign agencies
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.
corrective advertising
ads to correct deceptive advertiising (health warnng on cigarettes)
pricing situations
-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
amt. of money that is charged for "somethign" of value
target return objectve
seta s pecific level of profit as an ogjective. (usually stated as percentage of sales or of captial investment)
profit maximization objective
seseks to get as much profit as possible
sales-orientted objective
seeks some level of unit sales, dollar sales, or share of market (w/o referring to profit)
status quo objectives
dont' rock the pricing boat objectives, stabilize prcies, meet competition, avoid competition (most common when total market is not growing)
nonprice competitions
aggressive action on onre or more of the Ps other than price.
skimming price policy
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
penetration pricing policy
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
introductory price dealing
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.
unfair trade practice acts
put a lower limit on prices, especially at the whole sale and retiil levels. ; selling below cost in some states is illegal
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),
Wheeler Lea Amendment
bans "unfair o"or depceptives acts in commerce
price fixing
competitors getting atogether to raise, lower, or stabilize prices-is common and relatively easy, But it is also completely illegal in the US
Robinson-Patman Act (of 1936)
makes illegal any price discrimination if it injures competition
price discrimination
-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
you can have price differences but. .must be based on
-cost differences
-the need to meet competition
mark up
a dollar amount added tot eh cost of products to get the selling price
markup (percent)
means percentage of selling price that is added to the cost to get the selling price
standard mark up is often set close
to the firm's gross margin
markup chain
sequence of markups ffirms use at diff. levels in a channel-determine the prcie strucutre in the whole channel .
stokcturn rate
number of times the average inventory is sold in a yera. (low stockturn rate may be bad for profits)
average-cost pricing
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
average cost (per unit)
obtained by dividing total cost by the related quantity (that is, the total quantity that causes the total cost)
average fixed cost (per unit)
obtianed by dividng total fixed cost by the related quantity
average variable cost (per unit)
obtiaed by dividing total variable cost by the related qunaitty
experience curve pricing
average-cost pricing using an estimate of future average costs