Marketing Review Topics Exam 3

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Terms in this set (139)
receiverthe person who decodes a messagefeedbackthe receiver's response to a messagepromotional mixthe combination of promotional tools—including advertising, public relations, personal selling, and sales promotion—used to reach the target market and fulfill the organization's overall goalsadvertisingimpersonal, one-way mass communication about a product or organization that is paid for by a marketerpublic relationsthe marketing function that evaluates public attitudes, identifies areas within the organization the public may be interested in, and executes a program of action to earn public understanding and acceptancepublicitypublic information about a company, product, service, or issue appearing in the mass media as a news itemsales promotionmarketing activities - other than personal selling, advertising, and public relations - that stimulate consumer buying and dealer effectivenesspersonal sellinga purchase situation involving a personal, paid-for communication between two people in an attempt to influence each otherAIDA concepta model that outlines the process for achieving promotional goals in terms of stages of consumer involvement with the message; the acronym stands for attention, interest, desire, and actionintegrated marketing communicationsthe careful coordination of all promotional messages for a product or a service to assure the consistency of messages at every contact point where a company meets the consumerpush strategya marketing strategy that uses aggressive personal selling and trade advertising to convince a wholesaler or a retailer to carry and sell particular merchandisepull strategya marketing strategy that stimulates consumer demand to obtain product distributionadvertising response functiona phenomenon in which spending for advertising and sales promotion increases sales or market share up to a certain level but then produces diminishing returnsinstitutional advertisinga form of advertising designed to enhance a company's image rather than promote a particular productproduct advertisinga form of advertising that touts the benefits of a specific good or serviceadvocacy advertisinga form of advertising in which an organization expresses its views on controversial issues or responds to media attackspioneering advertisinga form of advertising designed to stimulate primary demand for a new product or product categorycompetitive advertisinga form of advertising designed to influence demand for a specific brandcomparative advertisinga form of advertising that compares two or more specifically named or shown competing brands on one or more specific attributesadvertising campaigna series of related advertisements focusing on a common theme, slogan, and set of advertising appealsadvertising objectivea specific communication task that a campaign should accomplish for a specified target audience during a specified periodadvertising appeala reason for a person to buy a productunique selling propositiona desirable, exclusive, and believable advertising appeal selected as the theme for a campaignmediumthe channel used to convey a message to a target marketmedia planningthe series of decisions advertisers make regarding the selection and use of media, allowing the marketer to optimally and cost-effectively communicate the message to the target audiencecooperative advertisingan arrangement in which the manufacturer and the retailer split the costs of advertising the manufacturer's brandinformerciala 30-minute or longer advertisement that looks more like a television talk show than a sales pitchadvergamingplacing advertising messages in Web-based or video games to advertise or promote a product, service, organization, or issuemedia mixthe combination of media to be used for a promotional campaigncost per contactthe cost of reaching one member of the target marketcost per clickthe cost associated with a consumer clicking on a display or banner adreachthe number of target consumers exposed to a commercial at least once during a specific period, usually four weeksfrequencythe number of times an individual is exposed to a given message during a specific periodaudience selectivitythe ability of an advertising medium to reach a precisely defined marketmedia scheduledesignation of the media, the specific publications or programs, and the insertion dates of advertisingcontinuous media schedulea media scheduling strategy in which advertising is run steadily throughout the advertising period; used for products in the later stages of the product life cycleflighted media schedulea media scheduling strategy in which ads are run heavily every other month or every two weeks, to achieve a greater impact with an increased frequency and reach at those timespulsing media schedulea media scheduling strategy that uses continuous scheduling throughout the year coupled with a flighted schedule during the best sales periodsseasonal media schedulea media scheduling strategy that runs advertising only during times of the year when the product is most likely to be usedproduct placementa 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 eventssponsorshipa public relations strategy in which a company spends money to support an issue, cause, or event that is consistent with corporate objectives, such as improving brand awareness or enhancing corporate imagecrisis managementA coordinated effort to handle all the effects of unfavorable publicity or of another unexpected unfavorable eventconsumer sales promotionsales promotion activities targeting the ultimate consumertrades sales promotionSales promotion activities targeting a marketing channel member, such as a wholesaler or retailer.coupona certificate that entitles consumers to an immediate price reduction when they buy the productrebatea cash refund given for the purchase of a product during a specific periodpremiuman extra item offered to the consumer, usually in exchange for some proof of purchase of the promoted productloyalty marketing programa promotional program designed to build long-term, mutually beneficial relationships between a company and its key customersfrequent buyer programloyalty program in which loyal consumers are rewarded for making multiple purchases of a particular good or servicesamplinga promotional program that allows the consumer the opportunity to try a product or service for freepoint-of-purchase displaya promotional display set up at the retailer's location to build traffic, advertise the product, or induce impulse buyingtrade allowancea price reduction offered by manufacturers to intermediaries, such as wholesalers and retailerspush moneymoney offered to channel intermediaries to encourage them to "push" products - that is, to encourage other members of the channel to sell the productsrelationship sellinga sales practice that involves building, maintaining, and enhancing interactions with customers in order to develop long-term satisfaction through mutually beneficial partnershipssales process (sales cycle)the set of steps a salesperson goes through in a particular organization to sell a particular product or servicelead generation (prospecting)identification of those firms and people most likely to buy the seller's offeringsreferrala recommendation to a salesperson from a customer or business associatenetworkinga process of finding out about potential clients from friends, business contacts, coworkers, acquaintances, and fellow members in professional and civic organizationscold callinga form of lead generation in which the salesperson approaches potential buyers without any prior knowledge of the prospects' needs or financial statuslead qualificationdetermination of a sales prospect's (1) recognized need, (2) buying power, and (3) receptivity and accessibilitypreapproacha process that describes the "homework" that must be done by a salesperson before he or she contacts a prospectneeds assessmenta determination of the customer's specific needs and wants and the range of options the customer has for satisfying themsales proposala formal written document or professional presentation that outlines how the salesperson's product or service will meet or exceed the prospect's needssales presentationa formal meeting in which the salesperson presents a sales proposal to a prospective buyernegotiationthe process during which both the salesperson and the prospect offer special concessions in an attempt to arrive at a sales agreementfollow-upthe final step of the selling process, in which the salesperson ensures that delivery schedules are met, that the goods or services perform as promised, and that the buyers' employees are properly trained to use the productspriceThat which is given up in an exchange to acquire a good or servicerevenueThe price charged to customers multiplied by the number of units soldprofittotal revenue minus total costreturn on investmentNet profit after Taxes divided by Total Assetsmarket shareA company's product sales as a percentage of total sales for that industrystatus quo pricinga pricing objective that maintains existing prices or meets the competition's pricesdemandthe quantity of a product that will be sold in the market at various prices for a specified periodsupplythe quantity of a product that will be offered to the market by a supplier at various prices for a specified periodprice equilibriumThe price at which demand and supply are equalelasticity of demandconsumers' responsiveness or sensitivity to changes in priceelastic demandA situation in which consumer demand is sensitive to changes in priceinelastic demandA situation in which an increase or a decrease in price will not significantly affect demand for the productunitary elasticitya situation in which total revenue remains the same when prices changeyield management systemsa technique for adjusting prices that uses complex mathematical software to profitably fill unused capacity by discounting early purchases, limiting early sales at these discounted prices, and overbooking capacityvariable costa cost that varies with changes in the level of outputfixed costa cost that does not change, no matter how much of a good is producedaverage variable costvariable costs divided by the quantity of outputmarginal costthe change in total cost that results from producing one more unitmarkup pricingthe cost of buying the product from the producer, plus amounts for profit and for expenses not otherwise accounted forkeystoningthe practice of marking up prices by 100 percent, or doubling the costprofit maximizationa method of setting prices that occurs when marginal revenue equals marginal costmarginal revenueThe extra revenue associated with the production and sale of one additional unit of outputbreak-even analysisa method of determining what sales volume must be reached before total revenue equals total costsselling against the brandstocking well-known branded items at high prices in order to sell store brands at discounted pricesextranetA private electronic network that links a company with its suppliers and customersprestige pricingcharging a high price to help promote a high-quality imageprice strategya basic, long-term pricing framework that establishes the initial price for a product and the intended direction for price movements over the product life cycleprice skimminga pricing policy whereby a firm charges a high introductory price, often coupled with heavy promotionpenetration pricinga pricing policy whereby a firm charges a relatively low price for a product initially as a way to reach the mass marketstatus quo pricingcharging a price identical to or very close to the competition's priceunfair trade practice actslaws that prohibit wholesalers and retailers from selling below costprice fixingan agreement among firms to charge one price for the same goodpredatory pricingthe practice of charging a very low price for a product with the intent of driving competitors out of business or out of a marketbase pricethe general price level at which the company expects to sell the good or servicequantity discounta price reduction offered to buyers buying in multiple units or above a specified dollar amountcumulative quantity discounta deduction from list price that applies to the buyer's total purchases made during a specific periodnoncumulative quantity discounta deduction from list price that applies to a single order rather than to the total volume of orders placed during a certain periodcash discounta price reduction offered to a consumer, an industrial user, or a marketing intermediary in return for prompt payment of a billfunctional discounta discount to wholesalers and retailers for performing channel functionsseasonal discounta price reduction for buying merchandise out of seasonpromotional allowancea payment to a dealer for promoting the manufacturer's productsrebatea cash refund given for the purchase of a product during a specific periodvalue-based pricingsetting the price at a level that seems to the customer to be a good price compared to the prices of other optionsFOB origin pricingA price tactic that requires the buyer to absorb the freight costs from the shipping point ("free on board")uniform delivered pricinga price tactic in which the seller pays the actual freight charges and bills every purchaser an identical, flat freight chargezone pricinga modification of uniform delivered pricing that divides the United States (or the total market) into segments or zones and charges a flat freight rate to all customers in a given zonefreight absorption pricinga price tactic in which the seller pays all or part of the actual freight charges and does not pass them on to the buyerbasing point pricinga price tactic that charges freight from a given (basing) point, regardless of the city from which the goods are shippedsingle-price tactica price tactic that offers all goods and services at the same price (or perhaps two or three prices)flexible pricinga price tactic in which different customers pay different prices for essentially the same merchandise bought in equal quantitiesprice liningthe practice of offering a product line with several items at specific price pointsleader pricinga 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 storebait pricinga 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 merchandiseodd-even pricinga price tactic that uses odd-numbered prices to connote bargains and even-numbered prices to imply qualityprice bundlingmarketing two or more products in a single package for a special priceunbundlingreducing the bundle of services that comes with the basic producttwo-part pricinga price tactic that charges two separate amounts to consume a single good or serviceconsumer penaltyan extra fee paid by the consumer for violating the terms of the purchase agreementproduct line pricingsetting prices for an entire line of productsjoint costscosts that are shared in the manufacturing and marketing of several products in a product linedelayed-quotation pricinga price tactic used for industrial installations and many accessory items in which a firm price is not set until the item is either finished or deliveredescalator pricinga price tactic in which the final selling price reflects cost increases incurred between the time the order is placed and the time delivery is madeprice shadingthe use of discounts by salespeople to increase demand for one or more products in a line