REA: Marketing Ch. 4
marketing of persons, ideas and organizations
early 1900’s, top business priority was to produce large quantities of goods as efficiently as possible with little care for customer satisfaction
between 1920-50. production and distribution techniques became more sophisticated. they over produced so people had to do heavy doeses of personal selling and advertising.
1950s, consumer power, growth in consumerism, product differentiation, customer focus, after ww2, shift from producers to customers, developed brands, marketing concept
a movement advocating greater protection of the interests of consumers
reductions in price to encourage buyers to pay their bills quickly
like discounts, are given to final consumers, customers, or channel members for doing something or accepting less of something
a method of determining what sales volume must be reached before total revenue equals total costs
Reductions retailers take on the initial selling price of the product or service.
(Functional discounts) Discounts offered to channel members for performing certain functions like storing or record keeping.
traditional prices that customers expect to pay for certain goods and services
A situation in which consumer demand is sensitive to changes in price
A situation in which an increase or a decrease in price will not significantly affect demand for the product
describes demand whose elasticity is equal to 1. (The quantity demand is exactly equal to the percentage change in price. elasticity)
When any price increase will cause the quantity demanded to drop to zero.
the condition of demand when price changes have no effect on quantity (absolutely)
an 1890 law that banned the formation of trusts and monopolies in the United States (stopped regulation of interstate commerce/monopolies)
robinson patman act
1937 – Amended federal anti-trust laws so as to outlaw “price discrimination,” whereby companies create a monopolistic network of related suppliers and vendors who give each other more favorable prices than they do others.
cost based pricing
setting prices based on the costs for producing, distributing, and selling the product plus a fair rate of return for effort and risk
alternative pricing objectives
a firms pricing startegy may reflect short term goals other than profit maximization, such as building market share, brand awareness, change customer perception, move inventory, etc.
The major elements of marketer-controlled communication, including advertising, sales promotion, public relations, personal selling, and direct marketing
integrated marketing communications
the intentional coordination of every communication from a firm to a target customer to convey a consistent and complete message
The various ways in which a message can be sent, ranging from one-on-one in-person meetings to Internet message boards.
Equalling your pormotional budget to the competitions
objective and task
allocating promotional funds by the different goals and actions that must be done to market functions. Difficult to calculate
all available funds
using all excess money to pay for promotions
gross rating points
Reach multiplied by frequency
the overall concept and theme for an advertising campaign
concerned with establishing relationships with new customers and developing new business
salespeople who primarily seek repeat sales
sales staff who facilitate selling but are not involved solely in making sales.
prospecting, pre-approach, approach, presentation, meeting objections, closing the sale, follow up
the practice of building ties to customers based on a salesperson’s attention and commitment to customer needs over time
the practice whereby buyers and the sellers combine their expertise and resources to create a customized solutions, commit to joint planning and share customer , competitive and company information for their mutual benefit, and ultimately the customers
straight salary, straight commision, combination plan
drawing account method
Modified straight commission plan. Each salesperson has a fixed credit used for sales.
For the drawing account method, the person is guaranteed not have to pay any debt they acquire.