Principles of Marketing Final Exam – Flashcards
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The element of the marketing mix that is used to communicate the firms offer to the target market
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Promotion
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Paid Advertising Publicity/Public Relations Personal Selling Promotion Social Media
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Promotion Mix
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The transfer of information from one entity to another
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Communication
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Sender Encoding Channel Decoding Receiver
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Communication Process
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Interpersonal Communication Mass Communication
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Communication Categories
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Marketers are both senders and receivers of messages
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True
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Inform Persuade Remind Connect
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4 Basic Tasks of Promotion
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convert an existing need into a want or to stimulate interest in a new product. It is more prevalent during the early stages of the product life cycle
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Informative Promotion
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designed to stimulate a purchase or an action. It becomes the main promotion goal when the product enters the growth stage of its life cycle.
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Persuasive Promotion
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is used to keep the product/brand name in the public's mind. It is effective during the maturity cycle.
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Reminder Promotion
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designed to form relationships with customers and potential customers to encourage them to be brand advocates
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Connecting
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Evaluates public attitudes, identifies areas within the organization that public may be interested in, and executes a program to earn public understanding
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Public Relations
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Marketing activities other than personal selling, advertising, and public relations that stimulate consumer buying and dealer effectiveness
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Sales Promotion
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Planned presentation to one or more prospective buyers for the purpose of making a sale
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Personal Selling
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Attempts to persuade the buyer into a specific point of view; win-lose outcome
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Traditional Selling
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Long-term relationships; win-win outcome
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Relationship Selling
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Promotion tools used to facilitate conversations among people online
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Social Media
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Attention Interest Desire Action
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AIDA
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Advantage Proof Action
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APA
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The careful coordination of all promotional messages to assure the consistency of messages at every contact point where a company meets the consumer
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Integrated Marketing Communications
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There is a best promotional mix (True/False)
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False
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Advertising may change a consumers negative attitude toward a product or reinforce a positive attitude (True/False)
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True
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Advertising can affect consumer ranking or brands attributes (True/False)
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True
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Institutional Product
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2 Types of Advertising
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Enhances a companys image rather than promote a particular product
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Institutional Advertising
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Touts the benefits of a specific brand, good or service
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Product Advertising
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Institutional Advertising promotes the corporation as a whole and is designed to establish, change, or maintain the corporations identity. (True/False)
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True
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A series of related advertisements focusing on a common theme, slogan, and set of advertising appeals
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Advertising Campaign
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Identifies the specific communication task that a campaign should accomplish for a specified target audience during a specified period
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Advertising Objective
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Before creative work can begin, advertising goals or objectives are established using the DAGMAR approach (True/False)
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True
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Defining Advertising Goals for Measured Advertising
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DAGMAR
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Define target market Define desired % change in Define time frame in which
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Steps of Advertising Objectives
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Media must be evaluated for appropriateness and efficiency (True/False)
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True
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Newspapers Magazines Radio Television Internet Outdoor Media
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Monitored Media
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Direct Mail Trade Exhibits Cooperative Advertising Brochures Coupons Catalogs Special Events
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Unmonitored Media
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Newspapers Magazines Radio Television Internet Outdoor Media
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Major Advertising Media
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Geographic selectivity short term advertiser commitments
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Advantages of Newspapers
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Limited demographic selectivity limited color
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Disadvantages of Newspapers
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A type of advertising where an arrangement in which the manufacturer and the retailer split the costs of advertising the manufacturers's brand
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Cooperative Advertising
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Good reproduction Demographic selectivity High pass along rate
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Advantages of Magazines
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Long term advertiser commitments slow audience build up
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Disadvantages of Magazines
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Low Cost Immediacy of Message
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Advantages of Radio
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No visual treatment Commercial clutter
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Disadvantages of Radio
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For small companies that cannot afford television or endorsements, radio advertising can help raise brand exposure and drive sales (True/False)
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True
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Wide, Diverse audience Low cost per thousand
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Advantages of Television
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Short life of the message Consumer skepticism High campaign cost
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Disadvantages of Television
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Fast growing Ability to reach narrow target audience
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Advantages of Internet
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Difficult to measure as effectiveness and ROI Ad exposure relies on "click through" from banner ads Not all consumers have access to Internet
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Disadvantages of Internet
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Repetition Moderate Cost Flexibility
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Advantages of Outdoor Media
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Short Message High "noise" level
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Disadvantages of Outdoor Media
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Shopping Carts Computer Screen Savers DVDs and CDs Interactive Kiosks Ads before Movies Bathroom Posters Subway Tunnel ads
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Alternative Media
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Advertising is run steadily throughout the period ( Hint: Type of Media schedule)
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Continuous Media Schedule
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Advertising is run heavily every other month or every two weeks ( Hint: Type of Media schedule)
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Flighted Media Schedule
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Advertising combines continuous scheduling with flighting ( Hint: Type of Media schedule)
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Pulsing Media Schedule
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Advertising is run only when the product is likely ( Hint: Type of Media schedule)
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Seasonal Media Schedule
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A coordinated effort to handle the effects of unfavorable publicity or an unexpected unfavorable event
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Crisis Management
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A certificate that entitles consumers to an immediate price reduction when they buy the product
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Coupon
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A cash refund given for the purchase of a product during a specific period
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Rebate
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An extra item offered to the consumer, usually in exchange for some proof of purchase of the promoted product
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Premium
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Involves communication between two or more people in an attempt to influence each other (Hint: Type of Selling)
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Personal Selling
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Provides a detailed explanation or demonstration of the product
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Advantages of Personal Selling
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Two way communication- you can incorporate feedback in the presentation
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Advantages of Personal Selling
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Considerably more effective than other forms of promotion in obtaining a sale and gaining a satisfied customer
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Advantages of Personal Selling
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Time Consuming- You can reach millions of people with a television ad, would take a lifetime with personal selling
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Disadvantages of Personal Selling
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Control Problems- sales people are people. (Hint: Problem with selling)
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Disadvantages of Personal Selling
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-Generate Leads -Qualify Leads -Learn about the Customer -Develop Solutions -Trial Close -Close the Sale -Follow up
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Steps in the Selling Process
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Money Authority Desire
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MAD
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the only element of the marketing mix the brings money in
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Price
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Net Profit/Total Assets
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ROI
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Consumers buy more or less of a product when the price changes (Hint: type of demand)
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Elastic Demand
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An increase or decrease in price will not significantly affect demand
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Inelastic Demand
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E>1
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Elastic
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E<1
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Inelastic
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%change in quantity demanded of good A/ % change in price of good A
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Elasticity(E)=
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Part is fixed and part is variable (Hint: Type of cost)
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Mixed Cost
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Total fixed cost/contribution margin
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Break Even Quantity=
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Unit BEP*Selling Price
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BEP in $=
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Charging a high price to help promote a high quality image
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Prestige Pricing
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A firm charges a high introductory price, often coupled with heavy promotion Helps match supply and demand Attracts competition
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Price Skimming
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A firm charges a relatively low price for a product initially as a way to reach the mass market
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Penetration Pricing
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Charging a price based on the competitions price and the segment targeted
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Competition and Segment Pricing
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An agreement between two or more firms on the price they will charge for a product
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Price Fixing
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Price Discrimination
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Robinson-Patman Act
