Marketing Chapter 16-20 – Flashcards
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advertising objective
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a specific communication task that a campaign should accomplish for a specified target audience during a specified period
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unique selling proposition
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a desirable, exclusive, and believable advertising appeal selected as the theme for a campaign
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medium
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the channel used to convey a message to a target market
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sales promotion
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marketing communication activities other than advertising, personal selling, and public relations, in which a short-term incentive motivates consumers or members of the distribution channel to purchase a good or service immediately, either by lowering the price or by adding value
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trade sales promotion
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promotion activities directed to members of the marketing channel, such as wholesalers and retailers
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advocacy advertising
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a form of advertising in which an organization expresses its views on controversial issues or responds to media attacks
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advertising campaign
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a series of related advertisements focusing on a common theme, slogan, and set of advertising appeals
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product placement
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a public relations strategy that involves getting a product, service, or company name to appear in a movie, television show, radio, program, magazine, newspaper, video game, video or audio clip, book, or commercial for another product; on the internet; or at special events.
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cause-related marketing
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the cooperative marketing efforts between a for-profit firm and a nonprofit organization.
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crisis management
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a coordinated effort to handle all the effects of unfavorable publicity or of another unexpected unfavorable event
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public relations
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the element in the promotional mix that evaluates public attitudes, identifies issues that may elicit public concern, and executes programs to gain public understanding and acceptance
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publicity
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an effort to capture media attention, often initiated through press releases that further a corporation's public relations plans
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push money
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money offered to channel intermediaries to encourage them to "push" products - that is, to encourage other members of the channel to sell the products
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cooperative advertising
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an arrangement in which the manufacturer and the retailer split the costs of advertising the manufacturer's brand
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competitive advertising
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a form of advertising designed to influence demand for a specific brand
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pioneering advertising
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A form of advertising designed to stimulate primary demand for a new product or product category
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comparative advertising
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a form of advertising that compares two or more specifically named or shown competing brands on one or more specific attributes.
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trade allowance
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a price reduction offered by manufacturers to intermediaries, such as wholesalers and retailers
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relationship (consultative) selling
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a sales practice that involves building, maintaining, and enhancing interactions with customers in order to develop long term satisfaction through mutually beneficial partnerships
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customer-centric
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a philosophy under which the company customizes its product and service offering based on data generated through interactions between the customer and the company
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knowledge management
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the process by which learned information from customers is centralized and shared in order to enhance the relationship between customers and the organization
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interaction
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the point at which a customer and a company representative exchange information ad develop learning relationships
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touch points
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areas of a business where customers have contact with the company and data might be gathered
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campaign management
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developing product or service offerings customized for the appropriate customer segment and then pricing and communicating these offerings for the purpose of enhancing customer relationships
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sales process (sales cycle)
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the set of steps a salesperson goes through in a particular organization to sell a particular product or service
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lead generation (prospecting)
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identification of those firms and people most likely to buy the seller's offerings
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referral
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a recommendation to a salesperson from a customer or business associate
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cold calling
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a form of lead generation in which the salesperson approaches potential buyers without any prior knowledge of the prospects' needs or financial status
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lead qualification
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determination of a sales prospect's (1) recognized need, (2) buying power, and (3) receptivity and accessibility
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needs assessment
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A determination of the customer's specific needs and wants and the range of options the customer has for satisfying them
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sales proposal
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a formal written document or professional presentation that outlines how the salesperson's product or service will meet or exceed the prospect's needs
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negotiation
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the process during which both the salesperson and the prospect offer concessions in an attempt to arrive at a sales agreement
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follow up
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the final step of the selling process, in which the salesperson ensures delivery schedules are met, goods or services perform as promised, and the buyers' employees are properly trained to use the products
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social commerce
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a subset of e-commerce that involves the interaction and user contribution aspects of social online media to assist online buying and selling of products and services
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crowdsourcing
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using consumers to develop and market products
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corporate blogs
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blogs that are sponsored by a company or one of its brands and maintained by one or more of the company's employees
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social media
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any tool or service that uses the internet to facilitate conversations
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social media monitoring
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the process of identifying and assessing what is to be said about a company, individual, product, or brand
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media sharing sites
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Web sites that allow users to upload and distribute multimedia content like videos and photos
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primary marketing goal
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increase customer conversations
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blog
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A publicly accessible Web page that functions as an interactive journal, whereby readers can post comments on the author's entries
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noncorporate blog
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independent blogs that are not associated with the marketing efforts of any particular company or brand
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microblogs
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blogs with strict post length limits
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Marketing goals for social networking sites
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-increasing awareness -targeting audiences -promoting products -forging relationships -highlighting expertise and leadership -attracting event participants -performing research -generating new business
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social media and mobile technology: what's the big deal?
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- worldwide, there are almost 6 billion mobile phones in use, 17% of which are smartphones - the mobile platform is such an effective marketing tool - especially when targeting a younger audience
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review sites
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Web sites that allow consumers to post, read, rate, and comment on opinions regarding all kinds of products and services
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location-based social networking sites
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Web sites that combine the fun of social networking with the utility of location-based GPS technology
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social news sites
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web sites that allow users to decide which content is promoted on a given web site by voting that content up or down
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price
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that which is given up in exchange to acquire a good or service
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revenue
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the price charged to customers multiplied by the number of units sold
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profit
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revenue minus expenses
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return on investment (ROI)
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net profit after taxes divided by total assets
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market share
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A company's product sales as a percentage of total sales for that industry
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demand
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the quantity of a product that will be sold in the market at various prices for a specified period
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supply
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the quantity of a product that will be offered to the market by a supplier at various prices for a specified period
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elastic demand
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a situation in which consumer demand is sensitive to changes in price
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inelastic demand
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a situation in which an increase or decrease in price will not significantly affect demand for the product
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variable cost
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a cost that varies with changes in the level of output
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fixed cost
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a cost that does not change as output is increased or decreased
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marginal cost (MC)
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the change in total costs associated with a one-unit change in output.
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profit maximization
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a method of setting prices that occurs when revenue equals marginal cost
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marginal revenue (MR)
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the extra revenue associated with selling an extra unit of output or the change in total revenue with a one-unit change in output
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break-even analysis
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a method of determining what sales volume must be reached before total revenue equals total costs
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3 pricing objectives
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profit-oriented, sales-oriented, status quo
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profit-oriented pricing objective
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-profit maximization -satisfactory profits -target return on investment
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sales-oriented pricing objective
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-market share -sales maximization
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status quo pricing objective
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-maintain existing prices -meet competition's prices
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markup pricing
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the cost of buying the product from the producer, plus amounts for profit and for expenses not otherwise accounted for
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keystoning
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the practice of marking up prices by 100 percent, or doubling the cost
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prestige pricing
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charging a high price to help promote a high-quality image
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price strategy
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a basic, long-term pricing framework, which establishes the initial price for a product and the intended direction for price movements over the product life cycle
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penetration pricing
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a pricing policy whereby a firm charges a relatively low price for a product initially as a way to reach the mass market
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price skimming
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a pricing policy whereby a firm charges a high introductory price, often coupled with heavy promotion
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status quo pricing
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charging a price identical to or very close to the competition's price
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price fixing
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an agreement between two or more firms on the price they will charge for a product
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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 or out of a market
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promotional allowance (trade allowance)
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a payment to a dealer for promoting the manufacturer's products
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value-based pricing
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setting the price at a level that seems to the customer to be a good price compared to the prices of other options
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base price
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the general price level at which the company expects to sell the good or service
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flexible pricing (variable pricing)
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a price tactic in which different customers pay different prices for essentially the same merchandise bought in equal quantities
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leader pricing (loss-leader pricing)
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a price tactic in which a product is sold near or even below cost in the hope that shoppers will buy other items once they are in the store
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bait pricing
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a price tactic that tries to get consumers into a store through false or misleading price advertising and then uses high-pressure selling to persuade consumers to buy more expensive merchandise
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price bundling
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marketing two or more products in a single package for a special price
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consumer penalty
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an extra fee paid by the consumer for violating the terms of the purchase agreement
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joint costs
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costs that are shared in the manufacturing and marketing of several products in a product line
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unfair trade practice acts
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laws that prohibit wholesalers and retailers from selling below cost
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different types of discounts
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quantity, cash, functional, seasonal
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FOB origin pricing
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a price tactic that requires the buyer to absorb the freight costs from the shipping point
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uniform delivered pricing
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a price tactic in which the seller pays the actual freight charges and bills every purchaser an identical, flat freight charge
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zone pricing
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a modification of uniform delivered pricing that divides the United States (or the total market) into segments or zones and charges a flat freight to all customers in a given zone
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freight absorption pricing
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a price tactic in which the seller pays all or part of the actual freight charges and does not pass them on to the buyer
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basing-point pricing
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a price tactic that charges freight from a given (basing) point, regardless of the city from which the goods are shipped
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price lining
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The practice of offering a product line with several items at specific price points
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odd-even pricing (psychological pricing)
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a price tactic that uses odd-numbered prices to connote bargains and even-numbered prices to imply quality
