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178 Cards in this Set

  • Front
  • Back
Competitive institutional advertisements
-type of institutional advertisement
-promote the advantages of one product class over another
-used in markets where different product classes compete for the same buyers
Reminder institutional advertisements
-type of institutional advertisement
-bring the company's name to the attention of the target market again
Fear appeals
-type of advertising that suggest to the consumer that he or she can avoid some negative experience through the purchase and use of the product or service, a change in behavior, or a reduction in the use of a product.
Sex appeals
-suggests to the audience that the product will increase attractiveness of the user.
-some argue that can be more distracting than affective.
humorous appeals
-imply either directly or subtly that the product is more fun or exciting than competitors' offerings.
-disadvantages: humor tends to wear out quickly and their effectiveness can vary across cultures.
advertising media
-the means by which the message is communicated to the target audience
-newspapers, magazines, radio, TV, etc.
reach
-the number of people or households exposed to an ad.
-newspapers often use reach to describe their total circulation or the number of different households that buy the paper.
-advertisers try to maximize reach in their target market at the lowest cost.
rating
-used by TV and radio stations to describe their reach.
-the percentage of households in a market that are tuned to a particular show or station
frequency
-the average number of times a person in the target audience is exposed to a message or ad.
gross rating points
-when reach (expressed as a percentage of the total market) is multiplied by frequency
-to achieve the appropriate number of GRPs to achieve objectives, media planner must balance reach and frequency.
-balance also influenced by cost
cost per thousand
refers to the cost of reaching 1,000 individuals or household with the advertising message in a given medium
Television pros and cons
pros:
-communicates with sight, sound, and motion.
-only medium that can reach 96% of the homes in the U.S.
cons:
-cost
-shorter ads reduce costs but severely restrict the amount of info and emotion being conveyed.
-likelihood of wasted coverage (ppl outside target market see the ad). can be reduced by though specialized cable and direct broadcast channels (ad time often less expensive).
-DVRs allow commercial-free viewing
infomercials
-program length ads that take an educations approach to communication with potential customers.
radio pros and cons
pros:
-seven times as many radio stations as TV stations
-segmented medium --> listened to by different market segments.
cons:
-limited use for products that must be seen.
-ease with consumers can tune out a commercial by switching stations.
-satellite radio allows commercial-free stations.
-medium that competes for people's attention as they do other activities.
magazine pros and cons
pros:
-many special-interest publicatoins that appeal to narrowly defined segments.
-good color production allows magazines to create strong images.
cons:
-cost
-infrequency
-consumer interests can be difficult to translate into a magazine theme
newspapers pros and cons
pros:
-daily publication
cons:
-rarely saved by the purchser
-inferior color reproduction compared to magazines.
newspaper trends
-joint operating agreement due to increased cost of production.
-online papers
-free tabloid newspapers --> new competition for traditional paid-for newspapers
rich media
-interactive online advertising feature
-interactive ads have droop-down menus, built-in games, or search engines to engage viewers
permission-based advertising
-viewers agree to watch a commercial online in exchange for points, samples, or access to premium content.
-advertisers only pay for completed views.
buyer turnover
-how often new buyers enter the market to buy the product
-the higher the turnover, the greater amount of advertising needed.
purchase frequency
-the more frequently the product is purchased, the less repetition is required.
forgetting rate
-sped with which buyers forget the bran if advertising isn't seen
continuous (steady) schedule
-when seasonal factors are unimportant
-advertising run at a continuous or steady schedule throughout the year.
flighting (intermittent) schedule
periods of advertising are scheduled between periods of no advertising to reflect seasonal demand.
pulse (burst) schedule
-flighting schedule combined with a continuous schedule because of increases in demand, heavy periods of promotion, or introduction of a new product.
pretest
-conducted before the ads are placed in any medium to determine whether the ad communicates the intended message or to select an alternative version of the ad.
portfolio tests
-used to test copy alternatives
-test ad placed in a portfolio with several other ads and stories and consumers rate the ads.
jury tests
-involve showing the ad copy to a panel of consumers and having them rate how they liked it, how much it drew their attention, and how attractive it was.
-similar to portfolio because it relies on consumer reactions
theater tests
-most sophisticated form of pretesting
-consumers invited to view new television shows or movies in which test commercials are also shown
-viewers give feedback about ads afterward.
full-service agency
-provides the most complete range of services, including market research, media selection, copy development, artwork, and production
-usually charge commission of 15%
-switching to incentives and fees based on performance.
limited-service agencies
-specialize in one aspect of the advertising process such as providing creative services to develop the advertising copy, buying previously unpurchased media, or providing internet services.
-contractual agreements
in-house agencies
-made up of the company's own advertising staff
-may provide full services or a limited range of services.
posttests
-after shown to target audience to determine whether it accomplished its intended purpose
aided recall
determine percentage of those
1). who remember seeing a specific magazine ad (noted)
2). who saw or read any part of the ad identifying the product or brand (seen-associated)
3). who read at least half of the ad (read most)
unaided recall
-question such as "What ads do you remember seeing yesterday?" asked without any prompting to determine whether they saw or heard ads.
inquiry tests
-additional product info, product samples, or premiums offered to an ad's readers or viewers.
-ads generating most inquiries are presumed to be most effective.
sales tests
-involve studies such as controlled experiments and consumer purchase tests
-the most sophisticated experimental methods allow a manufacturer, a distributor, or an ad agency to manipulate an ad variable through cable systems and observe subsequent sales effects by monitoring data collected from checkout scanners in supermarkets.
consumer-oriented sales promotions
-sales tools used to support a company's advertising and personal selling.
-tools include coupons, deals, premiums, contests, sweepstakes, samples, loyalty programs, point-of-purchase displays, rebates, and product placement.
coupons
-sales promotions that usually offer a discounted price to the consumer, which encourages trial.
deals
-short-term price reductions
-commonly used to increase trial among potential customer or to retaliate against a competitor's actions.
premiums
-promo tool
-consists of merchandise offered free or at a significant saving over its retail price
self-liquidating premium
-cost charged to consumer covers the cost of the item.
point-of-purchase displays
-product displays in form of ad signs, which sometimes actually hold or display the product, and are often located in high-traffic areas.
-don't rely on consumer's ability to remember the message.
product placement
-consumer promotion that involves the use of a brand-name product in a movie, tv show video, or commercial for another product
reverse product placement
-variation of product placement
-brings fictional products to the marketplace
trade-oriented sales promotions
sales tools used to support a company's advertising and personal selling directed to wholesalers, retailers, or distributors
1). allowances and discounts
2). cooperative advertising
3). training of distributors' salesforces
allowances and discounts
-form of trade promotion
1). merchandise allowance
2). case allowance
3). finance allowance
merchandise allowance
-reimbursing a retailer for extra in-store support or special featuring of the brand
-consists of a percentage deduction from the list case price ordered during the promotional period.
-allowance not paid until the manufacturer sees proof of performance
case allowance
-discount on each case ordered during a specific time period.
-usually deducted from the invoice
-variation called the "free goods" approach-retailers receive some amount of the product fee based on the amount ordered
finance allowance
-involves paying retailers for financing costs or financial losses associated with consumer sales promotions
-regularly used and has several variations.
floor stock protection program
-variation of a finance allowance
-manufacturers give retailers a case allowance price for product in their warehouse, which prevents shelf stock from running down during the promotional period
freight allowances
-variation of finance allowance
-compensate retailers that transport orders from the manufacturer's warehouse
cooperative advertising
-used to encourage both better quality and greater quantity in the local advertising efforts of resellers
-a manufacturer pays a percentage of the retailer's local advertising expense for advertising the manufacturer's products.
-usually pays about 50% of the advertising cost up to a certain dollar limit, which is based on the amount of the purchases the retailer makes of the manufacturer's products
-manufacturer often furnishes the retailer with a selection of different ad executions
training of distributors' salesforces
-manufacturer helps train the reseller's salesforce
publicity tools
methods of obtaining nonpersonal presentation of an organization, good, or service without direct cost
-available to the PR director
news release
-publicity tool
-announcement regarding changes in the company or product line
-to inform a newspaper, radio station, or other medium of an idea for a story
news conference
-publicity tool
-reps of the media are invited to an informational meeting
-advance material regarding the content is sent
-often used when negative publicity requires a company response.
personal selling
-involves the two-way flow of communication between a buyer and seller
-often face-to-face encounter
-designed to influence a person's or group's purchase decision
sales management
-involves planning the selling program and implementing and evaluating the personal selling effort of the firm
-set objectives
-organize salesforce
-recruit, select, train, and compensate salespeople,
-evaluate performance of individual salespeople
personal selling's roles in a firm's overall marketing effort
1). salespeople are the critical link between the firm and its customers
2). salespeople are the company in a customer's eyes
3). may play a dominant role in a firm's marketing program
relationship selling
-the practice of building ties to customers based on a salesperson's attention and commitment to customer needs over time.
-focuses on creating long-term customers
partnership selling
-buyers and sellers combine their expertise and resources to create customized solutions, commit to joint planning, and share customer, competitive, and company info for their mutual benefit
-relies on cross-functional business specialists
order taking
-type of personal selling
-order taker processes routine orders or reorders for products that were already sold by the company
-to preserve ongoing relationship with existing customers and maintain sales
outside order takers
-visit customers and replenish inventory stocks of resellers
-often assist in arranging displays
inside order takers
-also called order clerks or salesclerks
-typically answer simple question, take orders, and complete transactions with customers
-often employed by companies that use inbound telemarketing
inbound telemarketing
use of toll-free telephone numbers that customers can call to obtain info about products or services and make purchases.
order getter
-sells in a conventional sense and identifies prospective customers, gives them info, persuades to buy, closes sales, and follows up on customers' use of a product or service
missionary salespeople
-don't directly solicit orders, but rather concentrate on performing promotional activities and introducing new products.
sales engineer
-salesperson who specializes in identifying, analyzing, and solving customer problems
-brings how-to and technical expertise to the selling situation, but often doesn't actually sell.
team selling
-practice of using the entire team of professionals in selling to and servicing major customers
-used when specialized knowledge is needed to satisfy the different interests of individuals in a customer's buying center.
conference selling
-a salesperson and other company resource people meet with buyers to discuss problems and opportunities
seminar selling
-a company team conducts an eduvational program for a customer's technical staff
personal selling process
-6 stages
1. prospecting
2. preapproach
3. approach
4. presentation
5. close
6. follow-up
prospecting
-first stage in personal selling process
-search for and qualification of potential customers
lead
-type of prospect
name of a person who may be a possible customer
prospect
a customer who wants or needs the product
qualified prospect
-customer who wants a product, can afford to buy it and is the decision maker
cold canvassing or cold calling
-salesperson may open a directory, pick a name, and contact the individual or business
-criticized by U.S. consumers and is now regulated
-telephone consumer protection act
preapproach
-second state is personal selling process
-involves obtaining further info on the prospect and deciding on the best method of approach
approach
-third stage in personal selling process
-involves the initial meeting between the salesperson and prospect
-objectives are to gain the prospect's attention, stimulate interest, and build the foundation for the sales presentation itself and for a working relationship
presentation
-fourth stage in the personal selling process
-objective is to convert a prospect into a customer by creating a desire for the product or service
stimulus-response format
-format of presentation
-assumes that given the appropriate stimulus by a salesperson, the prospect will buy.
-salesperson tries one appeal after another, hoping to hit the right button
formula selling format
-presentation format
-based on the view that a presentation consists of info that must be provided in an accurate, thorough, and step-by-step manner to inform the prospect
canned-sales presentation
-popular version of the formula selling format
-memorized, standardized message conveyed to every prospect
-advantageous when differences between prospects are unknown
need satisfaction format
-presentation format
-emphasizes probing and listening by the salesperson to identify needs and interest of prospective buyers.
-salesperson tailors the presentation to the prospect and highlights product benefits that may be valued by the prospect
-emphasizes problem solving and customer solutions
adaptive selling
-style of need-satisfaction format presenting
-involves adjusting the presentation to fit the selling situation
consultative selling
-stye of need-satisfaction format presenting
-focuses on problem identification
-salesperson serves as an expert on problem recognition and resolution
-prominent in business-to-business marketing
objections
-excuses for not making a purchase commitment or decision
acknowledge and convert the objection
-technique dealing with objection
-using the objection as a reason for buying
postpone
-technique dealing with objection
-used when the objection will be dealt with later in the presentation
accept the objection
-technique dealing with objection
-when objection is valid
denial
-technique dealing with objection
-when objection is based on misinformation and clearly untrue
ignore the objection
-technique dealing with objection
-when it appears that the objection is a stalling mechanism or not important to the prospect
close
-fifth stage in the personal selling process
-obtaining a purchase commitment from the prospect
-most important and most difficult
trial close
-closing technique
-involves asking the prospect to make a decision on some aspect of the purchase
assumptive close
-closing technique
-entails asking the prospect to consider choices concerning delivery, warranty, or financing terms under the assumption that a sale has been finalized
urgency close
-closing technique
-used to commit the prospect quickly by making reference to the timeliness of the purchase
follow-up
-sixth stage of the personal selling process
-includes making certain the customer's purchase has been properly delivered and installed and difficulties experienced with the use of the item are addressed
-solidifies the buyer-seller relationship
sales plan
-statement describing what is to be achieved and where and how the selling effort of salespeople is to be deployed
1. setting objectives
2. organizing the salesforce
3. developing account management policies.
organizing the salesforce
-part of sales plan formulation
-3 questions
1. use own salesforce or independent agents?
2. if employ company salespeople, should they be organized based on geography, customer, or product?
3. how many company salespeople should be employed?
key account management
-practice of using team selling to focus on important customers so as to build mutually beneficial, long-term, cooperative relationship
-involves teams of sales, service, and often technical personnel who work with purchasing, manufacturing, engineering, logistics, and financial executives in customer organizations.
results in "customer specialists"
workload method
-common approach for determining the size of a salesforce
-formula-based method integrates the number of customers served, call frequency, call length, and available selling time to arrive at a figure for the salesforce size.
developing account management policies
-task in formulating a sales plan
-specifying whom salespeople should contact, what kinds of selling and customer service activities should be engaged in, and how these activities should be carried out
sales plan implementation
-function of sales management process
-1. salesforce recruitment and selection
2. salesforce training
3. salesforce motivation and compensation
job analysis
-study of a particular sales position
job description
-info from job analysis
-written document that describes job relationships and requirement that characterize each sales position
emotional intelligence
-ability to understand one's own emotions and the emotions of people with whom on interacts on a daily basis
straight salary
-salesperson is paid a fixed fee per week, month, or year
straight commission
- a salesperson's earnings are directly tied to the sales or profit generated.
combination of salary and commission
-specified salary plus a commission on sales or profit generated.
quantitative assessments
-based on input-and-output-related objectives set forth in the sales plan
sales quota
contains specific goals assigned to a salesperson, sales team, branch sales office, or sales district for a stated time period
behavioral evaluation
-assess salesperson's attitude, attention to customers, product knowledge, selling and comm skills, appearance, and professional demeanor.
salesforce automation
use of these technologies to make the sales function more effective and efficient
interactive marketing
-involves two-way buyer-seller electronic communication in a computer-mediated environment
choiceboard
an interactive, internet-enabled system that allows individual customers to design their own products and services by answering a few question and choosing from a menu of product or service attributes, prices, and delivery options
collaborative filtering
-a process that automatically groups people with similar buying intentions, preferences, and behaviors and predicts future purchases
-"customers who bought this also bought..."
personalization
-consumer-initiated practive of generating content on a marketer's website that is custom tailored to an individual's specific needs and preferences.
permission marketing
-the solicitation of a consumer's consent to receive e-mail and advertising based on personal data supplied by the consumer
seven website design elements used to produce customer experience
context, content, community, customization, communication, connection, and commerce
online consumers
subsegment of all internet users who employ this technology to research products and services and make purchases
-more likely to be women than men
-tend to be better educated, younger, and more affluent that the general U.S. population.
click-and-mortar
-type of online consumer
-women who tend to browse retailer websites but actually buy products in tradition retail outlets.
hunter-gatherers
-type of online consumer
-married couples with children at home who use the internet like a consumer magazine to gather information and compare products and prices.
brand loyalists
-type of online consumer
-regularly visit their favorite bookmarked websites and spend the most money online
-better educated, more affluent internet users
time-sensitive materialists
-type of online consumer
-regard the internet as a convenience tool for buying music, books, and computer software and electronics
hooked, online, and single
-type of online consumer
-young, affluent, and single online consumer who bank, play games, and spend more time online than any other segment
ebivalent newbies
-type of online consumer
-relative newcomers to the internet who rarely spend money online but seek product info
bots
electronic shopping agents or robots that comb websites to compare prices and product or service features
eight-second rule
says customers will abandon their efforts to enter and navigate a website if download time exceeds eight seconds.
customerization
-the growing practice of not only customizing a product or service but also personalizing the marketing and overall shopping and buying interaction for each customer
-combines choice-board and personalization systems to expand the exchange environment
web communities
-websites that allow people to congregate online and exchange views on topics of common interest.
blog
a web page that serves as a publicly accessible personal journal for an individual or organization
spam
-electronic junk mail or unsolicited e-mail
-CANSPAM act restricts info collection and unsolicited e-mail promotions on the internet
buzz
-a popular term for word-of-mouth behavior in marketspace
viral marketing
-an internet-enabled promotional strategy that encourages individuals to forward marketer-initiated messages to others via e-mail
-three approaches
1. embed a message in the product or service so that customers hardly realize they are passing it along
2. make the website so compelling that the viewers want to share it with others
3. offer incentives for referrals
dynamic pricing
-the practice of changing prices for products and services in real time in response to supply and demand conditions
-typically for time-sensitive items
cookies
computer files that a marketer can download onto the computer of an online shopper who visits the marketer's website
-allows the marketer's website to record a user's visit, track visits to other websites, and store and retrieve this information in the future
cross-channel shopper
-online consumer who researches products online and then purchases them at a retail store
-51% of U.S. online consumers
-represent both genders equally
-slightly younger than online consumers
-higher education, earn significantly more money, and are more likely to embrace technology in their lives than other online consumers.
transactional websites
-essentially electronic storefronts
-focus principally on converting an online browser into an online, catalog, or in-store buyer
-recurring issue of channel conflict
channel conflict
-
promotional websites
-advertise and promote a company's products and services and provide info on how item can be used and where they can be purchased
-often engage the visitor in an interactive experience
strategy
-devise and maintain a clearly stated, focuses strategy
execution
develop and maintain flawless operation execution
culture
develop and maintain a performance-oriented culture
structure
build and maintain a fast, flexible, flat organization
sales response function
relates the expense of marketing effort to the marketing results obtained
share points
-percentage points of market share
-common basis of comparison to allocate marketing resources effectively for different product lines within the same firm
long-range marketing plans
-typically cover activities from two to five years into the future
-rarely go beyond five years
annual marketing plans
-usually developed by a marketing or product manager in a consumer products firm
-deal with marketing goals and strategies for a product, product line, or entire firm for a single year
generic business strategy
-one that can be adopted by any firm, regardless of the product or industry involved, to achieve a competitive advantage
cost leadership strategy
-focuses on reducing expenses and, in turn, lowers product prices while targeting a broad array of market segments
differentiation strategy
-requires products to have significant points of difference in product offering, brand image, higher quality, advanced technology, or superior service to charge a higher price while targeting a broad array of market segments
-allows firm to charge a price premium
cost focus strategy
-involves controlling expenses and, in turn, lowering product prices targeted at a narrow range of market segments.
-used by retail chains targeting only a few market segments in a restricted group of products
differentiation focus strategy
-requires products to have significant points of difference to target one or only a few market segments.
diversification analysis
-the search for growth opportunities from among current and new markets as well as current and new products.
market penetration
-marketing strategy of increasing sales of present products in existing markets.
market development
a marketing strategy of selling existing products such as cereals to new markets.
product development
a marketing strategy of selling new products to existing markets
diversification
a marketing strategy of developing new products and selling them in new markets
synergy analysis
seeks opportunities by finding the optimum balance between marketing efficiencies versus R&D-manufacturing efficiencies
market-product concentration
firm benefits form focus on a single product lines and market segment, but it loses opportunities for significant synergies in both marketing and R&D manufacturing
market specialization
the firm gains marketing synergy though providing a complete product line for the city market segment, but R&D-manufacturing has the difficulty of developing and producing three different products.
product specialization
the firm gains R&D-manufacturing synergy
selective specialization
doesn't get either marketing or R&D-manufacturing synergies because of the uniqueness of the market-product combinations.
full coverage
firm has the maximum potential synergies in both marketing and R&D-manufacturing
action item list
an aid to implementing a marketing plan consisting of four columns
1. the talk
2. the person responsible for completing that task
3. the date to finish the task
4. what is to be delivered
program schedules
show the relationships through time of the various program tasks
1. identify main tasks
2. determine the time required to complete each
3. arrange the activities to meet the deadline
4. assigning responsibilities to complete each task
line positions
have the authority and responsibility to issue orders to the ppl who report to them
staff positions
have the authority and responsibility to advise people in line positions but can't issue direct orders to them
product line groupings
in which a unit is responsible for specific product offerings
funtional groupings
represent the different departments or business activities within a firm
geographical groupings
in which sales territories are subdivided according to geographical location
market-based groupings
utilize specific customer segments
matrix organization
when market-based groupings are combined with product groupings
category manager
-have profit-and-loss responsibility for an entire product line
product or brand manager
-basic building block in the marketing department of most consumer and business product firms
-plan, implement, and evaluate the annual and long-range plans for the products for which he or she is responsible
management by exception
-when a market manager identifies results that deviate from plans to diagnose their causes and take new actions.
marketing ROI
the application of modern measurement technologies to understand, quantify, and optimize marketing spending