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39 Cards in this Set

  • Front
  • Back
execution of advertising message
slice of life; fantasy; technical expertise; scientific evidence; testimonial evidence
execution of advertising message-slice of life
what happens in life-Nike
execution of advertising message-fantasy
execution of advertising messagetechnical experitse
nike sneakers innovation-->how they made the shoe into what it is now.. they knwo what they're doing
execution of advertising message scientific evidence
put in ads--> cigarettes vs. poison
execution of advertising message- testimonail evidence
Jared on Subway-celebrity-Jessica Simposon and ProActive
--be careful who you choose..Kobe Bryant
testing advertisng effects-copy testing
tests whether the ad is communicating well
execution of advertising message-purchase intention
do they do as they say?
execution of advertising message=experiment
IRI behvarioal Scan--test to see if respond to stuff on TV.. card to supermarket, record what they buy to what ads they see on TV
execution of advertising message test market
experiementing with different ad copies and/or ad spending levels
advertising evaluation
effects on sales, recall (how memorable the ad is), effects on attitude, inquiries, internet addvertisin gyields new and powerful ways of tracking effectiveness
promotions is also called
marketing communications
why use personal seelling
small specialty stores-big margins
-build good relations w/ customers
-alot of it is used for busniess products, not customer products
what's the use of public relations
build good rlations with company stake holders
-obtain favorable publicity
-build up a good company image
-handling unfavorable rumors and events
-->better to admit guilt, people will forgive you
product placement
products in shows, only product palcements if company pays for it. HAVE to have seamless integration. don't want to be too obvious but want to be noticed
promotional mix and factors ifluencing it
exact combo of different promitoinal methhods
-type of product market: consumer vs. buisiness products
-target market characterstics:customer heterogeneity, geographical concentration
-push vs. pull
-stage in product life cycle
Promoitional strategy in a product life cycle-intro
intro stage: stimulate primary demand, gain channel members' cooperation, encourage trial-> use targeted promotions.
Promoitional strategy in a product life cycle-growth stage
stimulate selective demand, mass seelling becomes economical, build relationships with middlemen, demand for particular brand, start advertising, no sales promotions by price; build loyalty
Promoitional strategy in a product life cycle-market maturity statge
mass selling and sales promotion dominate-sales promtoin are VERY ijmportation.
Promoitional strategy in a product life cycle-sales decline
either cut promoiton to remian proiftable or increase promoiton to slow cycle
advantages of status quo pricing obejctie
advantage: discourages price compettions
disadvantage: may not work in a rapdily changin market enviornemtn; may lead to sub-optimal prift level .
skimming pricing advantages
advantage: keeps demand consistent with limited production capacity
-covers high intial costs of R&D and product intro
-high profit margin, so high prfit and cash flow (since competttion is usually low in the intro stage)
DISADVANTAGE;attracts compettiors to enter the market
-will lose market share if consuemr loyalty doesn't build up
-not desirable if the objective is to achievee high market share
penetration pricing advanages
-lowers chance of compettive entry
-faster diffusion may help build image and loyalty
-sellign glarger qutntites may result in lower costs b/c of economies of sdcale
-low profit margin, not good unless the unit sales voume is hihgh enough
0firm needs enoguh capacity to serve high demand
markup pricing equation
(selling price-unit VC)/ selling price
Selling price equation
average costs/ (1-% markup to average cost)
-odd pricing
-even pricing
-leaves the impression of a deal
-give product a wholesome and upscale image
prestige pricing
setting a high price to suggest high quality or high status (jewelry, perfume)--> increase demand, if cheap, wonder about the quality
(loss) leader pricing
setting some very low prices to attract customers into retail stores (milk, butter)
-beneficial for grocery stores
-pricing-sell Tv for 99 bucks, if all gone--sell seomthign else
-cherry pickers-jsut go tot store and buy the way cheap item and leave
trade promtions: aimed at middlemen
-slotting allowances-pay retailer for shelf space
-trade wshows for for middlemen
-deaeler incentives and traingin programs-for sales reps
problems in maanging sales promotions
-sales promotions can erod brand loyalty and encourage consuemrs to buy on deals
-middlemen may not pass through all trade-deal dollars to consumers
-some consumers may simply speed up future purchases and stock-up, w/o increasing consumption
forward buying
middlemen may also stock up when there is a trade promtion
middlemen may buy more when a rpdoct is on trade protmoin and ship it to non-promotion areas to sell at higher prices
trends in retailing
-big mega stores
-growth of non-store retailing
-increasing competition
-private label brand offering key benefits
-global expansion of major retailers
profit-oriented objective
target return, profit mzximization
sales-oreitned objective
sales growth, market share growth
status-quo objective
meeting competiton, nonprocie competition
price war, implicit collusion
psychological pricing
odd-even pricing, pric elining, prestige pricing, loss leader pricing (diff. from bait pricing), cherry picking problem