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is comprised of those elements that contribute to the firm's overall communications program. The mix includes advertising, personal selling, publicity, public relations, and sales promotions

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Promotion Mix

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refers to the concept of planning a comprehensive program that coordinates all promotional activities.

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Integrated Marketing Communications (IMC)

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Who is the target market? What are the objectives? When should the promotions be run? Which media should be used?

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IMC 4 W's

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address three goals within the marketing mix. To inform, influence and remind buyers.

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Promotion Objectives

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provide the medium through which promotional messages are sent and delivered.

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Communication channels

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technique allocates a fixed percentage of the previous year's sales for promotional programs.

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Percent-of-Sales

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approaches establishes a budget based on the actions of the firm's closest competitors.

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Competitive parity

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procedure relies on the matching of promotional objectives to the funding required to achieve specific, objective related tasks.

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Objective and task

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technique allocates remaining resources to promotional activities.

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All Available funds

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Build Brand Awareness, Establish Brand Preference (Selective Demand), Create and Maintain Brand Loyalty, Market Development, Build Primary Demand, Industry sales, Increase product uses or rates of usage, support the firm's sales force, enhance the firm's image

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Advertising objectives - New Product Introduction

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stems from the budget developed in the Promotion Plan

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Advertising budget

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the choice of media-type and the selection of specific vehicles within each medium.

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Media planning

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refers to the percentage of a target audience that is exposed to an ad through a given vehicle, within a specified time frame.

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Reach

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advertising costs are evaluated according to the cost of reaching a thousand prospects through a given vehicle

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Cost-per-thousand

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refers to the average number of times that members of the target audience are exposed to an ad through a given vehicle.

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Frequency

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are calculated by multiplying Reach times Frequency.

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Gross rating points (GRPs)

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provides the overall concept and theme for an advertising campaign.

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Creative Platform

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can be assessed by both direct and indirect measures.

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Adverting effectiveness

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are responsible for securing new business for the firm.

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Order Getters

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service customer accounts that have already been established.

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Order takers

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who provide assistance to both the order getters and the order takers

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Support salespeople

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the maximum possible sales within a territory, will vary according to several considerations.

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Sales potential

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to specific territories should attempt to match the talent and ability of salespeople to the characteristics of the customers within the territory.

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Sales force allocation

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is a sequence of stages that are essential to effective personal selling.

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Selling process

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is the process of seeking and identifying prospective buyers or "leads".

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Prospecting

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the salesperson determines whether the prospect is both willing and able to buy.

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Qualifying Leads

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takes place prior to meeting with a qualified prospect. This includes an analysis of available information about a prospect's buying behavior

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Pre-Approach

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takes place when the seller first meets the prospective buyer. The goal at this stage is to gain the interest and attention of the buyer.

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Approach

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of the sales message may take the form of a prepared presentation or take an interactive approach.

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Presentation

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part of the presentation process. An important sales skill.

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Meeting objections

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is the stage at which the seller tries to gain a purchase commitment from the prospect.

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Closing the sale

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the salesperson's efforts to assure customer satisfaction after the sale.

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Follow-up

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memorized messages

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Canned sales presentations

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rely heavily on learning more about each prospect's needs and preferences through direct interaction.

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Interactive presentations

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refers to those salesperson's activities that are focused on building ties to the customer.

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Relationship selling

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refers to the formal arrangements between buyers and sellers that create unique, customized products and services for the buyer.

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Partnership selling

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refers to how sellers choose to organize their sales force. A sales force can be organized according to geographic territories, product lines, or customer types. Companies may have both inside and outside sales forces.

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Sales force structure

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plans may take one of three basic forms: straight salary, straight compensation, or a combination plan.

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Salesforce compensation

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is a modification of the straight commission plan. Sales commissions are credited to each individual's drawing account. Salespeople may withdraw a fixed amount cash period against their current balance or as an advance against future commissions.

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Drawing account method

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often used in the evaluation process. Sales/sales potential, sales expense/sales, total accounts/total potential number of accounts, and total number of calls/number of accounts

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Ratios

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is comprised of all paid marketing communications other than advertising, public relations, and personal selling

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Sales promotion

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coupons, contests, sweepstakes, rebates, premiums, refunds, point-of-purchase displays, etc.

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Consumer-directed

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trade allowances, quantity discounts, sales contests, trade shows, etc.

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Intermediary-directed

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refers to one-on-one communications with targeted customers and is aimed primarily at obtaining an immediate response.

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Direct marketing

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refers to all marketing activities conducted through interactive online computer networks and systems that link buyers and sellers.

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Online marketing

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is the term used to describe all forms of buying and selling that is supported by electronic means.

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Electronic commerce

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exists when the value of the price elasticity of demand is less than 1. If demand is elastic, an increase in price will produce a decrease in demand and a decrease in total revenue. Price decreases will increase demand and increase total revenue.

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Elastic demand

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exists when the value of the price elasticity of demand formula is greater than - 1. If demand is inelastic, an increase in price will produce a decrease in demand and an increase in total revenue. Price decreases will increase demand and decrease total revenue. If demand does not decrease at all in response to price increases, it is said to be perfectly inelastic.

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Inelastic demand

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exists when the value of the price elasticity of demand formula is - 1. In this instance, the change in demand is directly proportional to the change in price. When unitary elasticity exists, total revenue does not change in response to prince increases or decreases.

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Unitary elasticity

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is equal to the absolute value or non-negative value of the Price Elasticity of Demand formula.

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Price Elasticity of Demand Coefficient

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prevents businesses from restraining trade and interstate commerce. Pricing policies that are predatory or otherwise contribute to the monopolization of markets and conspiracies contrary to competitive pricing are illegal under the provisions of this law.

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The Sherman Act - (1890)

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prohibits any form of price discrimination that has the effect of reducing competition among wholesalers or retailers. The law provides that the same seller cannot provide the same products to competing buyers at different prices unless those price differentials can be justified on the basis of cost savings or good faith efforts to meet competitors' prices.

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The Robinson-Patman Act - (1936)

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is a strategy that introduces new products at relatively high prices. Higher initial prices enhance the perceived quality of the product and maintain demand at a level consistent with the firm's production capacity.

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Price skimming

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is an alternative pricing strategy for new product introductions. This option uses low introductory prices to gain a large share of the market more quickly than price skimming would allow.

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Penetration pricing

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establishes product prices as a function of product costs. Cost-based pricing techniques include cost-plus pricing and return on investment pricing.

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Cost-based pricing

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attempts to set prices based on consumer responses to product prices. Demand-based pricing techniques include prestige pricing, odd-even pricing, price lining, and leader pricing. Often referred to as psychological pricing.

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Demand-based pricing

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sets prices according to those charged by the firm's closest competitors. This may result in prices above, below, or at market levels. Competition-based pricing strategies include customary pricing and price leadership.

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Competition-based pricing

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offers the sale price to all buyers for purchases of essentially the same quantities in comparable situations

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One-Price policy

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permits the seller to charge different prices to different buyers in similar circumstances.

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Flexible pricing

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policies reflect different levels of transportation and other costs related to the physical distance between buyers and sellers

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Geographic pricing

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provides consumers with information on the price per unit on or near the product. This practice is intended to simplify comparisons between brands and various package sizes.

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Unit pricing

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a firm's pricing strategy may reflect short-term goals other than profit maximization. Short-term price reductions may be intended to build market share, build brand awareness in a new market or segment, change customers perceptions of product value, move inventory, fain distributor acceptance, or accelerate the pace of a new product adoption.

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Alternative pricing objectives

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establishes retail prices that are high, relative to competing brands. The higher price is intended to suggest higher product quality, consistent with the strength of the price-quality association in consumers' minds

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Prestige pricing

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sets prices just below even dollar values. ($99.99)

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Odd-even pricing

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when confronted with rising costs, marketers may try to maintain these customary prices by reducing the size of each package or changing the ingredients used in production.

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Customary prices

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simplifies consumers' evaluation of alternative products by establishing a limited number of price points for groups or lines of products.

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Price lining

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occurs when a firm sells select products below their usual price as a mains of gaining attention or building store traffic.

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Leader pricing

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are percentages or dollar amounts added to the cost of sales to arrive at the product's selling price.

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Markups

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are retrial price reductions. Managers typically markdown retail [prices in response to low consumer demand

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Markdowns

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are reductions from list prices that are given by sellers to buyers.

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Discounts

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are reductions form the list price given to intermediaries in exchange for the performance of specified tasks

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Trade discounts

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arise from the economics and improved efficiency of selling in large quantities

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Quantity discounts

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are given to encourage buyers to provide payment promptly

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Cash discounts

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are used to encourage buyers to make their purchases off-season.

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Seasonal discounts

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are price reductions that are intended to achieve specific goals

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Allowances

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allows managers to estimate the impact of alternative price levels on profits

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Break-even analysis

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in the second half of the 19th century, electricity, rail transportation, division of labor, assembly lines, and other mass production concepts made it possible to manufacture goods more efficiently.

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Production Era

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from the mid-1920's through the 1950's, the emphasis of the prevailing business philosophy was on sales as the primary means of increasing profits

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Sales Era

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by the early 1950's many businesses recognized that efficient production and extensive promotion did not guarantee that customers would buy what was being sold. Businesses turned their attention to understanding and serving customers' needs

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Marketing Era

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are the moral principles that define right and wrong behavior in marketing practice

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Marketing ethics

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are intended to eliminate opportunities for unethical behavior that will reflect baldy on the organization.

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Codes of conduct

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are those where the moral right or wrong of an action is determined by the consequences the action produces

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Compensatory model

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are those that maintain a universally true moral principal with no exceptions. These rules do not allow for considering the consequences of an act

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Noncompensatory model

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refers to the firm's obligations to society. Social responsibility has four dimensions: economic, legal, ethical, philanthropic

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Social responsibility

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refers to the design, development, and marketing of products that do not harm the environment.

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Green marketing

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is a concept that emphasizes the responsibility of the firm for products after they are disposed of by consumers

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Reverse logistics

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