13, 14, 16 – Flashcards

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Marketing
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The activity, set of institutions, and processes for creating, communicating, delivering and exchanging offerings that have value for customers, clients, partners and society at large.
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Marketing Concept
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A three-part business philosophy: (1) a customer orientation, (2) a service orientation and (3) a profit orientation.
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Customer relationship management (CRM)
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The process of learning as much as possible about customers and doing everything you can to satisfy them - or even exceed their expectations - with goods and services.
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Marketing mix
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The ingredients that go into a marketing program: product, price, place and promotion.
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Product
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Any physical good, service or idea that satisfies a want or need plus anything that would engage the product in the eyes of consumers, such as the brand.
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Test marketing
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The process of testing products among potential users.
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Brand name
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A word, letter, or group of words or letters that differentiates one sellers goods and services from those of competitors.
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Promotion
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All the techniques sellers use to inform people about and motivate them to buy their products or services.
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Marketing research
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The analysis of markets to determine opportunities and challenges, and to find the information needed to make good decisions.
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Secondary data
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Information that has already been complied by others and published in journals and books or made available online.
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Primary data
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Data that you gather yourself.
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Focus group
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A small group of people who meet under the direct of a discussion leader to communicate their opinions about an organisation, its products or other given issues.
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Environmental scanning
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The process of identifying the factors that can affect marketing success. Possible factors are: global, technological, sociocultural, competitive and economic factors.
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Consumer market
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All the individuals or households that want goods and services for personal consumption or use.
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Business-to-business (B2B) market
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All the individuals and organisations that want goods and services to use in producing other goods and services or to sell, rent or supply goods to others.
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Market segmentation
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The process of dividing the goal market into groups whose members have similar characteristics.
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Target marketing
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Marketing directed toward those groups (market segment) an organisation decides it can serve profitably.
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Geographic segmentation
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Dividing a market by cities, countries, states or regions.
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Ways of market segmentation:
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Geographic, demographic, psychographic (personality, values), benefit (durability, safety) or volume (usage).
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Demographic segmentation
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Dividing the market by age, income and education level.
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Psychographic segmentation
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Dividing the market using group values, attitudes and interests.
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Benefit segmentation
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Dividing the market by determining which benefits of the product to talk about.
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Volume (or usage) segmentation
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Dividing the market by usage.
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Niche market
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The process of finding small but profitable market segments and designing or finding products for them.
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One-to-one marketing
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Developing a unique mix of goods and services for each individual consumer.
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Mass marketing
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Developing products and promotions to please large groups of people.
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Relationship marketing
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Marketing strategy with the goal of keeping individual customers over time by offering them products that exactly meet their requirements.
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Consumer decision-making process influences
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Marketing mix influences, sociocultural influences, psychological influences, situational influences.
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Decision-making process:
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(1) Problem recognition, (2) information search, (3) alternative evaluation, (4) purchase decision, (5) post purchase evaluation.
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Value
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Good quality at a fair price. When consumers calculate the value of a product, they look at the benefits and then subtract the cost to see if the benefits exceed the costs.
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Distributed product development
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Handing off various parts of your innovation process - often to companies in other countries.
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Total product offer
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Everything that consumers evaluate when deciding whether to buy something; also called a value package.
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Product line
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A group of products that are physically similar or are intended for a similar market.
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Product mix
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The combination of product lines offered by a manufacturer.
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Product differentiation
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The creation of real or perceived product differences.
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Convenience goods and services
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Products that the consumer wants to purchase frequently and with a minimum effort.
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Shopping goods and services
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Products that the consumer buys only after comparing value, quantity, price and style from a variety of sellers.
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Speciality goods and services
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Consumer products with unique characteristics and brand identity, perceived as having no reasonable substitute.
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Unsought goods and services
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Products that consumers are unaware of, haven't necessarily thought of buying, or find that they need to solve an unexpected problem.
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Industrial goods
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Products used in the production of other products. Sometimes called business goods or B2B goods.
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Industrial goods -> support goods
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Installations, accessory equipment, supplies and service.
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Industrial goods -> production goods
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Raw materials, component parts, production materials
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Consumer goods (Types)
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Convenience, shopping, speciality and unsought goods
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Packages must perform:
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Attract buyers attention, protect the goods, be easy to open, information, benefits of goods, price
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Bundling
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Grouping two or more products together and pricing hem as a unit.
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Brand
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A name, symbol or design (or combination thereof) that identifies the goods or services of one seller or group of sellers and distinguishes them from the goods and services of competitors.
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Trademark
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A brand that has exclusive legal protection for both its brand name and its design.
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Manufacturers brands
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The brand names of manufactures that distribute products nationally.
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Dealer (private-label) brands
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Products that don't carry the manufacturer's name but carry a distributor or retailer's name instead.
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Generic name
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Name for a whole product category.
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Generic goods
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Nonbranded products that usually sell at a sizeable discount compared to national or private-label brands.
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Knockoff brands
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Illegal copies of national brand-name goods.
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Brand equity
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The value of the brand name and associated symbols.
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Brand loyalty
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The degree to which customers are satisfied, like the brand and are committed to further purchases.
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Brand awareness
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How quickly and easily a given brand name comes to mind when a product category is mentioned.
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Brand association
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The linking of a brand to other favourable images.
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Brand manager
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A manager who has direct responsibility for one brand or one product line, called also product manager.
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Product screening
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A process designed to reduce the number of new-product ideas being worked on at any one time.
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Product analysis
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Making cost estimates and sales forecasts to get a feeling for profitability of new-product ideas.
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Concept testing
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Taking a product ida to consumers to test their reactions.
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Commercialisation
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Promoting a product to distributors and retailers to get wide distribution, and developing strong advertising and sale campaigns to generate and maintain interest in the product among distributors and consumers.
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Product life cycle
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A theoretical model of what happens to sales and profits for a product class over time, the four stages of the cycle are: introduction, growth, maturity and decline.
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Target costing
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Designing a product so that it satisfies customers and meets the profit margin desired by the firm.
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Pricing strategies:
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Cost-based, demand-base (target costing), and competition based, skimming price, penetration, everyday low, high-low, psychological pricing strategy.
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Competition-based pricing
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A pricing strategy based on what all the other competitors are doing. The price can be set at, above, or below competitors prices.
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Price leadership
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The strategy by which one or more dominant firms set the pricing practices that all competitors in an industry follow.
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Break-even analysis
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The process used to determine profitably at various levels of sales.
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Total fixed costs
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All the expenses that remain the same no matter how many products are made or sold.
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Variable costs
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Costs that change according to the level of production.
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Break-even point (BEP):
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(TFC)/(P-VC)
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Skimming price strategy
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Strategy in which a new product is priced high to make optimum profit while there's little competition.
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Penetration strategy
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Strategy in which a product is priced low to attract many customers and discourage competition.
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Everyday low pricing (EDLP)
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Setting prices lower than competitors and then not having any special sales.
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High-low pricing strategy
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Setting prices that are higher than EDLP stores, but having many special sales where the prices are lower than competitors.
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Psychological pricing
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Pricing goods and services at price points that make the product appear less expensive than it is.
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Promotion mix
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The combination of promotional tools an organisation uses. Traditionally: advertising, personal selling, public relations and sales promotion. Nowadays, also email promotion, social networking, blogging, podcasting.
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Integrated marketing communication (IMC)
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A technique that combines all the promotional tools into one comprehensive, unified promotional strategy.
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Steps in a promotional campaign:
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Identifying a target market, define the objectives, determine a promotional budget, develop a unifying message, implement the plan, evaluate effectiveness.
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Advertising
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Paid, non personal communication through various media by organisations and individuals who are in some way identified in the advertising message.
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Major categories of advertising:
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Retail advertising, trade advertising, B2B advertising, institutional advertising, product advertising, advocacy advertising, comparison advertising, interactive advertising, online and mobile advertising.
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Estimate US advertising spending by medium:
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direct mail, broadcast tv, internet, newspaper, radio
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Product placement
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Putting products into TV shows and movie where they will be seen.
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Personal selling
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The face-to-face presentation and promotion of goods and services.
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Sales promotion
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The promotional tool that stimulates consumer purchasing and dealer interest by means of short-term activities.
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B2B sales promotion techniques:
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Trade shows, catalogs, conventions, portfolios for salespeople and deals.
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Consumer sale promotion techniques:
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Coupons, bonuses, sampling, catalogs, demonstrations, cents-off promotions.
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Sampling
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A promotional tool in which a company lets consumers have a small sample of a product for no charge.
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Event marketing
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Sponsoring events such as rock concerts or being at various events to promote your products.
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Word-of-mouth promotion
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A promotional tool that involves people telling other people about products they have purchased.
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Viral marketing
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Everything from paying customers to say positive things on the Internet to selling up multilevel selling schemes whereby consumers get commissions for directing friends to special websites.
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Push strategy
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Promotional strategy in which the producer uses advertising, personal selling, sales promotion, and all other promotional tools to convince wholesalers and retailers to stock and sell merchandise.
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Pull strategy
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Promotional strategy in which heavy advertising and sales promotion efforts are directed toward consumers so that they will request the product from retailers.
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Pick economy
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Customers who pick out their products from online outlets or who do online comparison shopping.
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