Marketing Final

103 terms by donfthom

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Promotion

communicating information between seller and potential buyer or others in the channel to influence attitudes and behaviors

Personal Selling

invlolves direct spoken communication between sellers and potential customers

mass selling

communication with large numbers or potential customers at the same time

advertising

any paid for of non personal presentation of ideas, goods or services by an identified sponsor

publicity

any unpaid form of non-personal presentation of ideas, goods, or services

sales promotion

promotion activities other than advertising, publicity, and personal selling that stiumlate interest, trial, or purchase by final customers or others in the channel

sales managers

concerned with managing personal selling

advertising managers

manage their company's mass selling effort in television, newspapers, magazines, and other media

sales promotion managers

manage their company's sales promotion effort

integrated marketing communication

the intentional coordination of every communication from a firm to a target customer to convey a consistent and complete message

AIDA model

consists of 4 promotion jobs:1) get attention, 2) hold interest, 3) arouse desire, 4) obtain action

Communication process

the steps between a source and a receiver that result in the transfer and understanding of meaning

Source

Part of Communication Process
The sender of a message

Encoding

Part of Communication Process
the source deciding what it wants to say and translating it into words or symbols that will have the same meaning to the receiver

Message Channel

Part of Communication Process
Carrier of the Message

Decoding

Part of Communication Process
the receiver translating the message

Receiver

Part of Communication Process
A potential customer

Noise

Part of Communication Process
any distraction that reduces the effectiveness of the communication process

Pushing

Using normal promotion effort (personal selling, advertising, and sales promotion) to help sell the whole marketing mix to possible channel members

Pulling

getting customers to ask intermediaries for the product

Adoption Curve

shows when different groups accept ideas
Innovators, early adopters, early majority, late majority, laggards or non-adopotors

Innovators

first to adopt

early adopters

Those who adopt an innovation early in the diffusion process but after the innovators.

Early Majority

avoid risk and wait to consider a new idea after many early adopters have tried and liked it

late majority

cautious about new ideas

laggards or nonadopters

prefer to do things the way theyve been done in the past and are very suspicious of new ideas

Primary Demand

demand for the general product idea-not just for the companies own brand

Selective Demand

demand for a companies own brand

Task method

basing the budget on the job to be done

Basic Sales tasks

the three basic sales tasks are order-getting, order-taking, and supporting

Order Getters

concerned with establishing relationships with new customers and developing new business

Order Getting

seeking possible buyers with a well organized sales presentation designed to sell a good, service, or idea

Order Takers

sell to the regular or established customers, complete most sales transactions, and maintain relationships with their customers

Order Taking

the routine completion of sales made regularly to target customers

Supporting salespeople

Help the order-oriented salespeople, but they don't try to get orders themselves.

missionary salespeople

support salespeople, usually employed by a manufacturer, who assist the producer's customers in selling to their own customers

technical specialists

supporting salespeople who provide technical assistance to order oriented salespeople

Customer Service reps

work with customers to resolve problems that arise with a purchase, usually after the purchase has been made

team selling

when different people work together on a specific account

Major accounts sales force

Sells directly to large accounts

telemarketing

using the telephone to call on customers or prospects

sales territory

a geographic area that is the responsibility of one salesperson or several working together

job description

a written statement of what a salesperson is supposed to do

sales quota

the specific sales or profit objective a salesperson is expected to achieve

prospecting

involves following all the leads in the target market to identify potential customers

sales presentation

a salesperson effort to make a sale or address a customers problem

Prepared sales presentation

uses a memorized presentation that is not adopted to each individual customer

close

the salesperson request for an order

consultative selling approach

involves developing a good understanding of the individual customers needs before trying to close the sale

selling formula approach

starts with a prepared presentation outline and leads the customer through some logical steps to a final close

product advertising

tries to sell a product

institutional advertising

promotes an organizations image, reputation, or ideas rather than a product

pioneering advertising

tries to develop primary demand for a product category rather than demand for a specific brand

competitive advertising

advertising that attempts to persuade consumers that a product is different from and superior to any other

direct type

aims for immediate buying action

indirect type

points out product advantages to affect future buying decisions

comparative advertising

making specific brand comparisons- using actual product names

reminder advertising

tries to keep the products name before the public

advertising allowances

price reductions to firms further along in the channel to encourage them to advertise or otherwise promote the firm's products locally

cooperative advertising

a cost-sharing arrangement whereby both a supplier and a local advertiser pay for advertising.

copy thrust

what the words and illustrations should communicate

advertising agencies

specialists in planning and handling mass-selling details for advertisers

corrective advertising

advertising ordered by the FTC to correct a false or misleading impression created by previous advertising for that product or service

price

the amount of money that is charged for something of value

target return objective

sets a specific level of profit as an objective

profit maximization objective

seeks to get as much profit as possible

sales oriented objective

seeks some level of unit sales, dollar sales, or share of market

status quo objectives

dont rock the pricing boat objective, most common when the total market is not growing, managers are satisfied with the current market share and profits

non price competition

aggressive action on one or more of the P's other than price

administered prices

consciously set prices

one price policy

offering the same price to all customers who purchase products under essentially the same conditions and in the same quantities

flexible price policy

offering the same product and quantities to different customers at different prices

skimming price policy

tries to sell the top of a market-the top of the demand curve-at a high price before aiming at more price-sensitive customers; may maximize profits in the market introduction stage for an innovation; also useful when you don't know very much about the shape of a demand curve

penetration pricing policy

tries to sell the whole market at one low price; wise when the elite market is small; fairly elastic demand curve; attractive if selling larger quantities results in lower costs because of economies of scale; wise when the firm expects strong competition very soon after introduction

introductory price dealing

temporary price cuts; used to speed new products into a market and get customers to try them; aim is to raise prices as soon as the introductory offer is over; should be part of a larger marketing strategy

basic list prices

the prices final customers or users are normally asked to pay for products

discounts

reductions from list price given by a seller to buyers who either give up some marketing function or provide the function themselves

Quantity discounts

discounts offered to encourage customers to buy in larger amounts

cumulative quantity discounts

apply to purchases over a given period-such as a year-and the discount usually increases as the amount purchased increases; encourage repeat buying by reducing the customer's cost for additional purchases

noncumulative quantity discounts

apply only to individual orders; encourage larger orders but do not tie a buyer to the seller after that one purchase

seasonal discounts

discounts offered to encourage buyers to buy earlier than present demand requires

net

the payment for the face value of the invoice is due immediately

cash discounts

reductions in price to encourage buyers to pay their bills quickly

2/10, net 30

customer may take a 2 percent discount from the merchandise total if payment is received by the seller within ten calendar days of the invoice date; if discount is not taken, full payment is due witin 30 days of the invoice date

Trade (functional) discount

a list price reduction given to channel members for the job they are going to do

sale price

temporary discount from the list price

everyday low pricing

setting a low list price rather than relying on frequent sales, discounts, or allowances

allowances

reductions in price given to final consumers, customers, or channel members for doing something or accepting less of something

advertising allowances

price reductions to firms further along in the channel to encourage them to advertise or otherwise promote the firm's products locally

stocking allowances

"slotting allowances"; given to an intermediary to get shelf space for a product; used mainly to get supermarket chains to handle new products

push money allowances

sometimes called PMs or spiffs-are given to retailers by manufacturers or wholesalers to pass on the retailers' salesclerks for aggressively selling certain items; used for new items, slower-moving items, or higher margin items

trade in allowance

price reduction given for used products when similar new products are bought

rebates

refunds paid to customers after a purchase

F.O.B.

means free on board some vehicle at some place

zone pricing

making an average freight charge to all buyers within specific geographic areas

uniform delivered pricing

making an average freight charge to all buyers

freight absorption pricing

means absorbing freight cost so that a firm's delivered price meets that of the nearest competitor

unfair trade practice acts

put a lower limit on prices, especially a the wholesale and retail levels

Dumping

pricing a product sold in a foreign market below the cost of producing it or at a price lower than in its domestic market

phony list prices

prices customers are shown to suggest that the price has been discounted from list

Wheeler Lea Amendment

bans unfair or deceptive acts in commerce

Price Fixing

an agreement between two or more firms on the price they will charge for a product

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.

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