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29 terms

Chapter 18

STUDY
PLAY
advertising
Any paid form of nonpersonal communication about an organization, good, service, or idea by an identified sponsor
all-you-can-afford budgeting
allocating funds to promotion only after all other budget items are covered
channel of communication
the means (a salesperson, advertising media, or public relations tools) of conveying a message to a receiver during the communication process
communication
process of conveying a message to others and requires six elements: a source, a message, a channel of communication, a receiver, and the processes of encoding and decoding.
competitive parity budgeting
Allocating funds to promotion by matching the competitors absolute level of spending or the proportion per point of market share. Also called matching competitors or share of market.
decoding
the process of having the receiver take a set of symbols, the message, and transform them back to an idea during the communication process
direct marketing
a promotion alternative that uses direct communication with consumers to generate a response in the form of an order, a request for further information, or a visit to a retail outlet
direct orders
the result of direct marketing offers that contain all the information necessary for a prospective buyer to make a decision to purchase and complete the transaction
encoding
process of having the sender transform an idea into a set of symbols during the communication process
feedback
in the feedback loop, the sender's interpretation of the response, which indicates whether a message was decoded and understood as intended during the communication process
field of experience
a mutually shared understanding and knowledge that the sender and receiver apply to a message so that it can be communicated effectively during the communication process
hierarchy of effects
the sequence of stages a prospective buyer goes through from initial awareness of a product to eventual action (either trial or adoption of the product). The stages include awareness, interest, evaluation, trial, and adoption
integrated marketing communications (IMC)
Concept of designing marketing communications programs that coordinate all promotional activities--- advertising, personal selling, sales promotion, public relations, and direct marketing--- to provide a consistent message across all audiences.
lead generation
the result of a direct marketing offer designed to generate interest in a product or service and a request for additional information
message
the information sent by a source to a receiver during the communication process
noise
extraneous factors that can work against effective communication by distorting a message or the feedback received during the communication process
objective and task budgeting
allocating funds to promotion whereby the company: (1) determines its promotion objectives; (2) outlines the tasks to accomplish these objectives; and (3) determines the promotion cost of performing these tasks
percentage of sales budgeting
allocating funds to promotion as a percentage of past or anticipated sales, in terms of either dollars or units sold
personal selling
the two-way flow of communication between a buyer and seller, often in a face-to-face encounter, designed to influence a person's or group's purchase decision
promotional mix
the combination of one or more communication tools used to: (1) inform prospective buyers about the benefits of the product, (2) persuade them to try it, and (3) remind them later about the benefits they enjoyed by using the product
public relations
a form of communication management that seeks to influence the feelings, opinions, or beliefs held by customers, prospective customers, stockholders, suppliers, employees, and other publics about a company and its products or services
publicity
a nonpersonal, indirectly paid presentation of an organization, good, or service
pull strategy
directing the promotional mix at ultimate consumers to encourage them to ask the retailer for a product
push strategy
directing the promotional mix to channel members to gain their cooperation in ordering and stocking the product
receivers
consumers who read, hear, or see the message sent by a source during the communication process
response
in the feedback loop, the impact the message had on the receiver's knowledge, attitudes, or behaviors during the communication process
sales promotion
a short-term inducement of value offered to arouse interest in buying a good or service
source
a company or person who has information to convey during the communication process
traffic generation
the outcome of a direct marketing offer designed to motivate people to visit a business