Intro to Business Chapter 11& 12

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Marketing
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A group of activities designed to expedite transactions by creating distribution pricing and promoting goods services and ideas. It is a systematic approach to satisfying consumers.
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Exchange
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The act of giving up one thing (money, credit, labor, goods) in return for something else (goods, services, or ideas)
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Function of marketing
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Marketing for the zone complex set of activities that must be performed to accomplish objectives and generate exchanges. Includes buying, selling, transporting, sorting, grading, financing, marketing research, and risk-taking
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Buying
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Everyone who shops for products (consumers, stores, businesses, governments) decides whether and what to buy. A marketer must understand buyers’ needs and desires to determine what products to make available
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Selling
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This change process is expedited through selling. Markers usually view selling as a persuasive activity that is accomplished through promotion (advertising, personal selling, sales promotions, publicity, and packaging).
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Transporting
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Transporting is the process of moving products from sellers to the buyers. Marketers for this on transportation costs and services.
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Storing
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Like transporting, storing is part of the physical distribution of products and includes warehousing goods. The warehouse holds some products for a lengthy period to create time utility. The tiny utility has to do with being able to satisfy demand in a timely manner. This especially pertains to seasonal good such as orange juice.
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Grading
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Grading refers to standardizing products by dividing them into subgroups displaying and labeling them so that consumers clearly understand their nature and quality
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Financing
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For many products, especially large items such as automobiles, refrigerators, and new homes, the marketer arranges his credit to expedite the purchase
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Marketing research
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Through research, marketers ascertained the need for new goods and services. By gathering information regularly, marketers can detect new trends and change in consumer taste
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Risk taking
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Risk is the chance of loss associated with marketing decisions. Developing a new product creates a chance of loss if consumers do not like it enough to buy it. Spending money to hire a sale force or to conduct marketing research also involves risk. The implications of risk is that most marketing decisions result in either success or failure.
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Value
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A customer’s subjective assessment of benefits relative to cost and determining the worth of a product. The tax and the service charge included in the price of the television is a monetary cost associated with purchasing a television.
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Marketing concept
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The idea that an organization should try to satisfy customers needs to coordinated activities that also allowed to achieve its own goals
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Market orientation
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And approach requiring organizations to gather information about customers needs, share that information throughout the firm, and use that information to help build long-term relationships with customers
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Marketing strategy
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A plan of action for developing, pricing, distributing, and promoting products that meet the needs of specific customers
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Market
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A group of people who have a need, purchasing power, and the desire and authority to spend money on goods, services, and ideas
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Target market
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A specific group of consumers on his needs and wants a company focuses its marketing efforts
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Turtle market approach
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And approach whereby a firm tries to peel to everyone and assumes that all buyers have some morning
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Market segmentation
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Strategy whereby a firm divides the total market into groups of people who have relatively similar product needs
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Market segment
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A collection of individuals, groups, or organizations who share one or more characteristics and thus had a relatively some more product needs and desires
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Concentration approve
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Market segmentation approach whereby a company develops one marketing strategy for single market segment
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Multisegment approach
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Market segmentation approach whereby the market Ames is efforts at two or more segments, developing a marketing strategy for each. The marketer aims its marketing efforts at two or more segments, developing a marketing strategy for each. Many firms use a multisegment approach that includes different advertising messages for different segments.
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Marketing mix
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The four marketing activities (product, price, promotion, and distribution) that the firm can control to achieve specific goals with the dynamic marketing environment
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Price
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Value placed on an object exchange between a buyer and a seller
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Distribution
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Marketing products available to customers in the quantities design. Also referred to as Place.
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Promotion
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Persuasive form of communication attempts to expedite a marketing is changed by enforcing individuals, groups and organizations to set goods, services an idea
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Marketing research
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A systematic objective process of getting information about potential customers to guide marketing decision
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Primary data
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Marketing information is observed, recorded, or collected directly from respondents
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Secondary data
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Information that is compiled inside or outside an organization for some purpose other than changing the current situation
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Buying behavior
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The decision process and action of people who purchase and use products
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Perception
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The process by which a person selects, organizes, and interprets information received from his or her senses
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Motivation
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Inner drive that directs a person’s behavior towards goals
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Learning
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Changes in a person’s behavior based on information and experiences
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Attitude
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Knowledge and positive or negative feeling about something
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Personality
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The organization of an individual’s distinguishing character traits, attitudes, or have it
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Social roles
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A set of expectations for individuals based on some position they occupy
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Reference groups
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Groups with him buyers identify and whose values or attitudes they adopt. Include families, professional groups, civic organizations, and other groups with whom buyers identify and whose values or attitudes they adopt.
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Show classes
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A ranking of people into higher or lower positions of respect
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Culture
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The integrated, excepted pattern of human behavior, including thoughts, speech, beliefs, actions, and artifacts
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Psychological Variables of Buying Behavior
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Perception, Motivation, Learning, Attitude, Personality
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Social Variables of Buying Behavior
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Social Roles, Reference Groups, Social Classes, Culture
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Marketing Era
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Determining what customers want first then producing it
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Family Size
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Family size is an example of the demographic segmentation of markets. Demographic segmentation includes age, sex, race, ethnicity, income, education, occupation, family size, religion, social class. These characteristics are often closely related to customers’ product needs and purchasing behavior, and they can be readily measured.
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Key to Developing a Marketing Strategy
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Maintaining a marketing mix that creates long-term relationships with customers
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Product Development Process
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Idea Generation –> New Idea Screening –> Business Analysis –> Product Development –> Test Marketing –> Commercialization
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Idea Generation
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New ideas can come from marketing research, engineers and outside sources such as advertising agencies and management consultants. Ideas sometimes come from customers too.
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New Idea Screening
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In this phase, a marketing manager should look at the organization’s resources and objectives and assess the firm’s ability to produce and market the product. Important aspects to consider at this stage are consumer desires, the competition, technological changes, social trends, and political, economic and environmental considerations.
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Business Analysis
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A basic assessment of product’s compatibility in the marketplace and its potential profitability.
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Product Development
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Often expensive and few product ideas make it to this stage. Various elements of the marketing mix must be developed for testing. Copyrights, tentative advertising copy, packaging, labeling and descriptions of a target market are integrated to develop an overall marketing strategy.
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Test Marketing
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A trial mini-launch of a product in limited areas that represent the potential market.
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Commerciailization
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The full introduction of a complete marketing strategy and the launch of the product for commercial success.
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Consumer Products
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Products intended for household or family use
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Business Products
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Products that are used directly or indirectly in the operation of manufacturing processes of businesses
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Product Line
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A group of closely related products that are treated as a unit because of similar marketing strategy
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Product Mix
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All the products offered by an organization
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Product Life Cycle
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Four stages – Introduction, Growth, Maturity, and Decline
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Introduction Stage
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Consumer awareness and acceptance of the product are limited, sales are zero and profits are negative
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Growth Stage
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Sales increase rapidly and profits peak, then start to decline. One reason profits start to decline during the growth stage is the new companies enter the market, driving prices down and increasing marketing expenses.
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Maturity Stage
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Sales continue to grow but then they hit a curve peak and start to decline while profits continue to decline.
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Decline Stage
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Sales continue to fall rapidly. Profits also decline and may even become losses as prices ar cut and necessary marketing expenditures are made. As profits drop firms may eliminate certain models or items.
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Branding
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The process of naming and identifying products
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Trademark
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A brand that is registered with the US Patent and Trademark Office and is thus legally protected from use by any other firm
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Manufacturer Brands
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Initiated and owned by the manufacturer to identify products from the point of production to the point of purchase
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Private Distributor Brands
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Brands which may cost less than manufacturer brands, that are owned and controlled by a wholesaler or retailer.
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Generic Products
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Products with no brand name that often come in simple packages and carry only their generic name
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Packaging
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The external container that holds and describes the product
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Labeling
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The presentation of important information on a package
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Quality
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The degree to which a good, service, or idea meets the demands and requirements of customers
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Price Skimming
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Charging the highest possible price that buyers who want the product will pay
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Penetrating Price
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A low price designed to help a product enter the market and gain market share rapidly
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Psychological Pricing
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Encouraging purchased based on emotional rather than rational responses to the price
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Reference Pricing
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A type of psychological pricing in which a lower priced item is compared to a more expensive brand in hopes that the consumer will use the higher price as a comparison price.
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Discount
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Temporary price reductions, often employed to boost sales
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Marketing Channel
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A group of organizations that moves products from their producer to customers; also called a channel of distribution
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Reatilers
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Intermediaries who buy products from manufacturers (or other intermediaries) and sell them to consumers for home and household use rather than for resale or for use in producing other products
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Wholesalers
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Intermediaries who buy from producers or from other wholesalers and sell to retailers
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Intensive Distribuition
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A form of market coverage whereby a product is made available in as many outlets as possible.
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Selective Distribution
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A form of market coverage whereby only a small number of all available outlets are used to expose products. Uses only a small number of all available outlets to sell products
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Exclusive Distribution
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The awarding by a manufacturer to an intermediary of the sole right to sell a product in a defined geographic territory.
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Physical Distribution
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All the activities necessary to move products from producers to customers-inventory control, transportation, warehousing, and materials handling.
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Transperation
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The shipment of products to buyers.
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Warehousing
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The design and operation of facilities to receive, store, and ship products.
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Materials Handling
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The physical handling and movement of products in warehousing and transportation
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Integrated Marketing Communications
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Coordinating the promotion mix elements and synchronizing promotion as a unified effort
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Advertising
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A paid form of nonpersonal communication transmitted through a mass medium, such as television commercials or magazine advertisements
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Advertising Campaign
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Designing a series of advertisements and placing them in various media to reach a particular target market.
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Personal Selling
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Direct, two-way communication with buyers and potential buyers. 6 Step Process: Prospecting Approaching Presenting Handling Objections Closing Following Up
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Publicity
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Nonpersonal communication transmitted through the mass media but not paid for directly by the firm
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Sales Promotion
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Direct inducements offering added value or some other incentive for buyers to enter into an exchange.
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Push Strategy
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An attempt to motivate intermediaries to push the product down to their customers
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Pull Strategy
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The use of promotion to create consumer demand for a product so that consumers exert pressure on marketing channel members to make it available.
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Promotional Positioning
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The use of promotion to create an maintain an image of a product in buyers’ minds
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Promotional Mix
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Consist of: Personal Selling Advertising Sales Promotions Publicity

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