Mkt exam 3 – Flashcards
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Advocacy Institutional Advertisement
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States where the company stands on issues such as renewable energy.
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Pioneering Institutional Advertisement
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It is similar to pioneering ads, it is announcements on things like what the company does and what it is.
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Competitive Institutional Advertisement
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Encourages buyers to buy from their market while competing for popularity for their products.
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Reminder Institutional Advertisement
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Brings the attention of target markets again.
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Demand-oriented pricing approaches
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- Skimming pricing - Penetration pricing - Prestige pricing -Price lining -Odd-even pricing - Target pricing - Bundling pricing - Yield management pricing
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Skimming pricing
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- There are enough prospective customers are willing to buy the product immediately at a high price - High initial price will mot attract competitors - lowering prce has minor effect on sales - high price signifies high quality to customers
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The 6 steps to pricing
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- identify pricing objectives and constraints - estmate demand and revenue - determine cost, volume and profit relationships - select approximate price level - set list or quoted price - make special adjustments to list or quoted price
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Demand-oriented pricing defined
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Weigh factors underlying expected customer tastes and preferences more heavily than cost, profit, and competition when setting the price level..
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Skimming pricing defined
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Introducing a new or innovative product with the highest initial price
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Penetrating pricing
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- many segments of the market are price sensitive - a low initial price discourages competitors from enterong the market - unit production and marketing costs fall dramatically ad production volumes increase
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Adding a fixed percentage to the cost of all items in a specific product class
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Standard markup pricing
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Summing the total unit cost of providing a product and adding a specific amount to set pricing
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Cost-plus pricing
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Over the years the price of dvd players decreased from $900 to 50 because of
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Experiance curve pricing
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Setting an annual target for specific dollar volume of profit is referred to as
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Target profit pricing
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Setting a price to achieve a profit that is specified percentage of sales volume
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Target return on sales
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Competition oriented approach pricing
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Loss-reader pricing
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Setting a price that is dictated by tradition
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Customary pricing
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Manufactureres in generic brands use what method of competition oriented pricing
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Below-market pricing
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Selling a product before its customary price hoping customerd will then buy other products
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Loss-leader pricing
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Manufacturers use seasonal discounts to
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Encourage buysers to stock up prior to normal demand
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The purpose of a cash discount
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Encourages retailers to pay their bills promptly
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Allowances like discounts refer to what
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Reduction from list price for buyers for performing activity
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Pricing where all buyers pay the same delivered price regardless of distance from seller
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Single-zone pricing
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Charging a very low price with the intent of driving competitirs out of busimess is
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Preditory pricing
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Thebflow of a product from producer through intermediatders to a buyer
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Marketing channel
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An intermediary with legal authority to act on behalf of a manufacturer is
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Agent
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An intermesiary who sells to other intermediariries
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Wholesaler
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Who is the intermediater who sells directly to customers
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Retailers
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Extending credit to a customer is an example of what kind of function
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Faciliating
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Social media are
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online media where users submit news, photos, and videos
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sites with interacting users like Facebook and Youtube are referred to as a
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Social network
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Blog
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A publicly accessible personal journal and online forum for individual or an organization
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A website with content created and edited by an ongoing collaboration of end users is a(n)
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Wiki
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All the following statements about user generated content (UGC) are true EXCEPT: a) published on a public website and created by end users b) reposting an article found in a newspaper without editing c) generated by an individual outside a professional org d) shows a significant degree of creative effort
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b) reposting an article found in a newspaper without editing
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Interactive ads with drop-down menus or built-in games to engage viewers are
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Rich Media
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Social networks can be classified based on
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media richness; self-disclosure
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Based on the social media image, the social media site rated LOWEST in self-disclosure is
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Wikipedia
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Social media are DIFFERENT from traditional media because
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Traditional requires specialized skills and a team of people
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Users create a profile, add friends, & exchange comments, photos,videos, and "likes" with them
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Facebook
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The website that enables users to send and receive messages up to 140 characters long is
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Twitter
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LinkedIn is
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users post and connect to a network of business people
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YouTube is
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a website where users upload, view, and comment on videos
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Pinterest
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Members"affix" images, videos, etc. to "boards" categorized into different themes.
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An example of the ideal performance measure for social media advertising is one that
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Ties actual sales to the cost of the ad
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One of the three guidelines on marketing and promoting a brand using YouTube include
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Target viewers using YouTube insights and analytics research
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Cost per thousand (CPM) is a measure in which
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A fixed amount paid for every 1,000 times an ad loads
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In terms of performance measure important to marketing managers, unique visitors are
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Total unique visitors to a Facebook Page in a given period
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The interaction rate is:
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# of people comment on/like a Post divided by # seeing Post.
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The GREATEST concern consumers may have regarding the convergence of real and digital worlds is
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Interference w/ personal privacy as personal data is shared
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What are two factors to consider for markup pricing?
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cost and selling price
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Profit-Oriented pricing
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involves setting a target of specific dollar volume of profit or expressing this target profit as a percentage of sales or investment
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Approaches to Profit-Oriented pricing
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- Target profit pricing - Target return-on-sales pricing - Target return-on-investment pricing
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Competition-Oriented Pricing Approaches
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- Customary Pricing - Above at or below-market pricing - Loss-leader pricing
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Basing-point pricing
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selecting one or more geographical locations (basing point) from which the list price for products plus freight expenses are charged to the buyer.
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Price Fixing
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a conspiracy among firms to set prices for a product.
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Price Discrimination
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the practice of charging different prices to different buyers for products of like grade and quality.
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Predatory pricing
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the practice of charging a very low price for a product with the intent of driving competitors out of business.
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Quantity Discounts
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reductions in unit costs for a larger order to encourage customers to buy larger quantities of a product.
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Seasonal Discounts
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To encourage buyers to sock inventory earlier than their normal demand
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Trade (Functional) Discounts
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To reward wholesalers and retailers for marketing functions they will perform in the future, the reductions off the list or base price are offered to resellers who are expected to be in the channel perform in marketing activities in the future
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Cash Discounts
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discount for cash policy to encourage retailers to pay their bills quickly
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Allowances
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- Trade-in Allowances - Promotional Allowances
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Promotional allowances
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cash payments or extra amount of "free goods" awarded sellers in the channel of distribution for undertaking certain advertising or selling activities to promote a product.
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Special adjustments
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- Discounts - Allowances - Geographical adjustments
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Geographical Adjustments
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- FOB origin pricing - Uniformed delivered pricing
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The function of Marketing channel intermediaries
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- Transactional Function - Logistical Function - Facilitating Function
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Marketing Channel
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Individuals and firms involved in the process of making a product or service available for use or consumption by consumers or industrial users.
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Dual Distribution
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an arrangement whereby a firm reaches different buyers by employing two or more different types of channels for the same basic product.
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Multichannel marketing
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the blending of different communication and delivery channels that are mutually reinforcing in attracting, retaining, and building relationships with consumers who shop and buy in traditional intermediaries and online.
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Vertical Marketing System
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professionally managed and centrally coordinated marketing channels designed to achieve channel economies and maximum marketing impact.
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Logistics
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activities that focus on getting the right amount of the right products to the right place at the right time at the lowest possible cost.
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Supply Chain
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a sequence of firms that perform activities required to create and deliver a product or service to ultimate consumers or industrial users.
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Customer service level
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the expenses associated with transportation, materials handling and warehousing, inventory, stockouts (being out of inventory), order processing, and return products handling.
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Indirect Channels
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- Agents - Industrial Distributor - to industrial user
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Direct Marketing
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No face-to-face meeting with the seller. Direct Mail, Catalog, Telemarketing, Interactive Media and televised home shopping (QVC, HSN). LL Bean is an example of an exclusive direct marketer.
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Direct Channel
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the producer and the ultimate consumers deal directly with each other like Schwan's food
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Indirect Channel
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Intermediaries are inserted between the producer and consumers and perform numerous channel functions
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Logistics
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activities that focus on getting the right products to the right place at the right time at the lowest possible cost
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Responsive Supply Chain
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Targets customers who desire having the most up to date computer systems customized to their needs like Dell
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Efficient Supply Chain
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Aims to be reliable lower-price retailer for a wide variety of mass consumption consumer goods like Wal-mart
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Logistics Cost Concept
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includes expenses associated with transportation, materials, handling and warehousing, inventory, stockouts(being out of inventory), order processing, and return products and handling
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Customer Service
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the ability of logistics management to satisfy users in terms of time, dependability, communication, and convenience.
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Customer Service Factors
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- Time - Dependability - Communication - Convenience
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Dual Distribution
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an arrangement whereby a firm reaches different buyers by employing two or more different types of channels for the same basic product.
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Intensive Distribution
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a level of distribution density whereby a firm tries to place its products and services in as many outlets as possible.
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Exclusive Distribution
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a level of distribution density whereby only one retailer in a specific geographical area carries the firm's products.
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Selective distribution
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a level of distribution density whereby a firm selects a few retailers in a specific geographical area to carry its products.
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Reverse logistics
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a process of reclaiming recyclable and reusable materials, returns, and reworks from the point of consumption or use for repair, remanufacturing, redistribution, or disposal.
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Identifying the Target Audience
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based on market research about the target audience
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Designing the Advertisement
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Uses message content the creation of the actual message to focus on the key benefits of the product that are important a a prospective buyer
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Reach
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the number of different people or households exposed to an advertisement.
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Rating
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the percentage of households in a market that are tuned to a particular TV show or radio station.
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Frequency
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the average number of times a person in the target audience is exposed to a message or an advertisement.
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Gross Rating Points (GRPs)
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a reference number used by advertisers that is obtained by multiplying reach (expressed as a percentage of the total market) by frequency.
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Cost Per Thousand (CPM)
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the cost of reaching 1,000 individuals or households with the advertising message in a given medium (M is the Roman numeral for 1,000).
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Full-service agency
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an advertising agency that provides the most complete range of services, including market research, media selection, copy development, artwork, and production.
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Limited-service Agency
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advertising agencies that specialize in one aspect of the advertising process, such as providing creative services to develop the advertising copy, buying previously unpurchased media space, or providing Internet services.
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In-house Agency
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consist of the company's own advertising staff, who may provide full services of a limited range of services
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Free on Board Pricing (FOB)
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origin pricing where the seller quotes that includes only the cost of loading the product onto the vehicle and specifies the name of the location where the loading is to occur (seller's factory or warehouse).
