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103 terms

Marketing Final

STUDY
PLAY
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.