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Principles of marketing exam 3 (ch, 18, 19)

Terms in this set (48)

Advertising
any paid form of non-personal presentation and promotion of ideas, goods, or services 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 (e.g., a salesperson, advertising media, or public relations tools) of conveying a message to a receiver during the communication process
Communication
the process of conveying a message to others; it 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 competitor's 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
promotional 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
the 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 the message so that it can be communicated effectively during the communication process
hierarchy of effects
the sequence of stages a prospective buyer goes through: awareness, interest, evaluation, trial, and adoption
Integrated Marketing Communications (IMC)
The 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 set 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
objective and task budgeting
Allocating funds to promotion whereby the company: (1) determines its promotion objectives; (2) outlines the tasks to accomplish those objectives; and (3) determines the promotion cost of performing those 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 a seller that is designed to influence the buyer's purchase decision.
Promotional Mix
the combination of one or more of the communication tools used to inform, persuade, or remind prospective buyers
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, product, 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
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 product 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
consumer-oriented sales promotion
Sales tools used to support a company's advertising and personal selling directed to ultimate consumers. Also called consumer promotions.
cooperative advertising
advertising programs by which a manufacturer pays a percentage of the retailer's local advertising expense for advertising the manufacturer's products
cost per thousand (CPM)
the cost of reaching 1,000 individuals or households with the advertising message in a given medium
frequency
the average number of times a person in the target audience is exposed to a message or advertisement
full-service agency
an advertising agency that provides the most complete range of services, including market research, media selection, copy development, artwork, and production
Gross Rating Points (GRPs)
a reference number used by advertisers that is obtained by multiplying reach (expressed as a percentage of the total market) by frequency
informercials
program-length (30-minute) advertisements that take an educational approach to communication with potential customers
in-house agencies
consist of the company's own advertising staff, who may provide full services or a limited range of services
institutional advertisements
advertisements designed to build goodwill or an image for an organization, rather than promote a specific product or service
limited-service agencies
advertising agencies that specialize in one aspect of the advertising process, such as providing creative services to develop the advertising copy, buying previously unpurchased media space, or providing Internet services
mobile marketing
the broad set of interactive messaging options that enable organizations to communicate and engage with consumers through any mobile device
Posttests
tests conducted after an advertisement has been shown to the target audience to determine whether it accomplished its intended purpose
Pretests
tests conducted before an advertisement is placed in any medium to determine whether it communicates the intended message or to select among alternative versions of the advertisement
product advertisements
advertisements that focus on selling a product or service; forms include pioneering (informational), competitive (persuasive), and reminder
product placement
a consumer sales promotion tool that uses a brand-name product in a movie, television show, video game, or a commercial for another product
publicity tools
methods of obtaining nonpersonal presentation of an organization, product, or service without direct cost
rating
the percentage of households in a market that are tuned to a particular TV show or radio station
reach
the number of different people or households exposed to an advertisement
trade-oriented sales promotions
sales tools used to support a company's advertising and personal selling directed to wholesalers, distributors, or retailers
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