107 terms

Ch 14,15,17

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Terms in this set (...)

The 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
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
Communication
is the process of conveying a message to others and that requires six elements: a source, a message, a channel
of communication, a receiver, and the processes of encoding and decoding
Communication elements
Source: company or person who has information
Message: info sent by source
Channel of Comm: conveys the message (salesperson)
Receivers: consumers who read,hear,see the message
Encoding
the process of having the sender transform an idea into a set of symbols
Decoding
The process of having the receiver take a set of symbols, the message, and transform them back to an idea
field of experience
a similar understanding and knowledge they apply to the message
feedback
feedback loop: which consists of a response and feedback
response: impact the message had on the receivers knowledge, attitudes, or behaviors
Feedback: senders interpretation of the response
Pretesting: ensures messages are decoded properly
Noise
includes extraneous factors that can work against effective communication by distorting a message or the feedback received. (printing mistake, misunderstood message)
mass selling
grouped with perspective buyers
(advertising, sales promotion, public relations)
Customized interaction
when a seller uses personal selling activities (face-to-face, telephone, and interactive electronic communication) to a prospective buyer
Advertising
is any paid form of nonpersonal communication
about an organization, good, service, or idea by an identified sponsor.
Controls What, When, Whom
Personal selling
consists of 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
wasted coverage
communication with consumers who are not in the target audience
Product Life Cycle
Introduction: increasing consumers level of awareness
Growth: persuade the consumer to buy
Maturity: maintain existing buyers (coupons)
Decline: period of phase out
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
Sales promotion
a short-term inducement of value offered to arouse interest in buying a good or service
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
push strategy
involves directing the promotional mix to channel members to gain their cooperation in ordering and stocking the product.
Manufacturer->Wholesaler->Retailer->Consumer
A pull strategy
involves directing the promotional mix at ultimate consumers to encourage them to ask the retailer for a product
Consumer->Retailer->Wholesaler->Manufacturer-> Consumer
Direct-to-consumer
Complement traditional personal selling and free samples
Promotion decision process
1) Planning/ developing ->identidy target audience
2) Implementation/ executing
3) Evaluation/assessing the promotion program
behavioral targeting
collecting information about your web-browsing behavior to determine the banner and display ads that you will see you as surf the web
PriceBreaker
sends discounted message alerts to people in its database
Developing a promotion program
-Identifying the target audience
-Specifying promotion objectives
-Setting the Promotion budget
-Selecting right promotional tools
-Designing the Promotion
-Scheduling the promotion
Data Protection Directive
law that regulates how personal data is processed and protected in the European Union
The 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: consumer ability to recognize product
interest: increase in desire to learn about product
evaluation: consumers appraisal of product on attributes
trial: consumers actual first purchase and use of product
adoption: consumer's repeated purchase of brand
Setting the Promotion budget
1)Percentage of sales: the amount of money spent on promotion is a percentage of past or anticipated sales
2)Competitive parity: matches the competitors absolute level of spending
3)All you can afford: allows money to be spent on promotion only after other budget items are covered
4)Objective and task: Company determines its promotion objectives, outlines the tasks to accomplish those objectives, determines the promotion cost of performing those tasks
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
Lead generation
the result of a direct marketing offer designed to generate interest in a product or service and a request for additional information
Traffic generation
the outcome of a direct marketing offer designed to motivate people to visit a business
Advertising
any paid form of nonpersonal communication
about an organization, good, service, or idea by an identified sponsor
Product advertisements
are advertisements that focus on selling a good or service and which take three forms:
(1) pioneering (or informational): tells what product is, what it can do, where it can be found
(2) competitive (or persuasive): promotes a specific brand's feature and benefits
(3) reminder: used to reinforce previous knowledge of a product
Institutional advertisements
are advertisements designed to build goodwill or an image for an organization rather than promote
a specific good or service
4 alternative forms of institutional advertizements
1) Advocacy: state the position of a company on an issue
2)Pioneer institutional: announces what a company is, what it can do, and where the company is located
3)Competitive institutional: promote advantages of one product class over another
4)Reminder institutional: brings the company name to the attention of the target market again
Fear appeals
suggest to the consumer that he or she can avoid some negative experience through the purchase and use of a product or service, a change in behavior, or a reduction in the use of a product
Sex appeals
suggest to the audience that the product will increase the attractiveness of the user
Humerous appeals
Imply either directly or more subtly that the product is more fun or exciting than competitors' offerings.
Advertising media
the means by which the message is communicated to the target audience
reach
number of different people or households exposed to an advertisement
rating
The percentage of households in a market that are tuned to a particular TV show or radio station
frequency
average number of times a person in the target audience is exposed to a message or advertisement
gross rating points
a reference number used by advertisers that is obtained by multiplying reach by frequency
Cost per thousand
refers to the cost of reaching 1,000 individuals or households with the advertising message in a given medium
Infomercials
are program-length (30-minute) advertisements that take an educational approach to communication with potential customers
rich media
Interactive ads that deliver multimedia effects using sound, still images, and full motion video are categorized as
Transit advertising
advertisement seen on public transportation
Place-based media
Advertising media that transmit messages in public places, such as doctors' offices and airports, where certain types of people congregate.
Buyer turnover
how often new buyers enter the market to buy the product
purchase frequency
the more frequently the product is purchased, the less repetition is required
forgetting rate
the speed with which buyers forget the brand if advertising is not seen
3 scheduling approaches
1) Continuous- when seasonal factors are unimportant, advertising runs at a continuous schedule during the year
2) Flighting- periods of advertising are scheduled b/w periods of no advertising to reflect seasonal demand
3)Pulse- both combined, increase in demand, heavy periods of promotion, and intro of a new product
Pretests
are 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
Portfolio Tests
used to test copy alternatives
Jury Tests
involve showing the ad copy to a panel of consumers and having them rate how they liked it, how much it drew their attention, and how attractive they thought it was
Theater Tests
Consumers are invited to view new television shows or movies in which test commercials are also shown
Full-service agency
provides the most complete range of services, including market research, media selection, copy development, artwork, and production
Limited-service agencies
an agency that provides one or more specialized services, such as media buying or creative development
in-house agencies
Made up of the company's own advertising staff may provide full services or a limited range of services
Posttests
are tests conducted after an advertisement has been shown to the target audience to determine whether it accomplished its intended purpose
5 approaches to posttesting
Aided Recall: respondents are asked whether their previous exposure was through reading,viewing,listening
Unaided Recall: "what ads do you remember"
Attitude Test: respondents answer questions to measure changes in attitude
Inquiry Tests: additional product information
Sales Tests- involves studies like controlled experiments
Consumer-oriented sales promotion
sales tools used to support a company's advertising and personal selling directed to ultimate consumers. Also called consumer promotions
point-of purchase displays
merchandise displays located at the point of purchase
Product placement
is a consumer sales promotion tool that uses a brand-name product in a movie, television show, video game, or a commercial for another product
Trade-oriented sales promotions
are sales tools used to support a company's advertising and personal selling directed to wholesalers, distributors, or retailers. Also called trade promotions
merchandise allowance
reimbursing a retailer for extra in-store support or special featuring of the brand
case allowance
a discount on each case ordered during a specific time period
finance allowance
involves paying retailers for financing costs or financial losses associated with consumer sales promotions
Cooperative advertising
consists of advertising programs by which a manufacturer pays a percentage of the retailer's local advertising expense for advertising the manufacturer's products
Publicity tools
are methods of obtaining nonpersonal presentation of an organization, good, or service without direct cost, such as news releases, news conferences, and public service announcements
Public Relations
news release- announcement regarding company changes
news conference- media representatives invited to meeting
public service announcements- free space or time donated by the media (nonprofit rely heavily on this)
Personal selling
is 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
Sales management
consists of planning the selling program and implementing and evaluating the personal selling effort of the firm
Relationship selling
the practice of building ties to customers based on a salesperson's attention and commitment to customer needs over time
order taker
processes routine orders or reorders for products that were already sold by the company. 2 types
1)Outside: visit customers and replenish inventory stocks of retailers
2)Inside: (salesclerks or order clerks) answer simple questions, take orders, and complete transactions
inbound telemarketing
use of toll free telephone numbers that customers can call to obtain info about products or services and make purchases
order getter
sells in a conventional sense and identifies prospective customers, provides customers with information, persuades customers to buy, closes sales, and follows up on customers' use of a product or service
outbound telemarketing
practice of using the telephone rather than personal visits to contact current and prospective customers
Personal selling process
consists of sales activities occurring before, during, and after the sale
itself, consisting of six stages:
(1) prospecting: search for and qualify prospects
(2) preapproach: Gather info and decide approach
(3) approach: gain prospect attention
(4) presentation: Create desire for product
(5) close:obtain a purchase from prospect
(6) follow-up: ensure the customer is satisfied
cold calling
Contacting a prospect without a prior appointment. Salesperson may open a directory, pick a name, and contact that individual
The Telephone Consumer Protection Act
Contains provisions to curb abuses such as early morning or late night calling
Preapproach stage
obtaining further information on the prospect and deciding on the best method of approach. Especially important in international selling.
Approach Stage
involved the initial meeting between the salesperson and the prospect, where the objectives are to gain the prospect's attention, stimulate interest, and build the foundation for the sales presentation itself and the basis for a working relationship.
Presentation Stage
at the core of the order-getting selling process, and its objective is to convert a prospect into a consumer by creating a desire for the product or service. 3 formats exist.
Stimulus-Response Format
Assumes that given the appropriate stimulus by a salesperson, the prospect will buy
suggestive selling
If a waiter asks if you want an appetizer before your meal.
Formula Selling Format
Based on the view that a presentation consists of information that must be provided in an accurate, thorough, and step-by-step manner to inform the prospect
Canned sales presentation
memorized, standardized message conveyed to every prospect. Treats every prospect the same. Good when differences between prospects are unknown, or with new salespeople
Need-Satisfaction Format
Emphasizes probing and listening by the salesperson to identify the needs and interests of prospective buyers
Adaptive selling
a need-satisfaction presentation format that involves adjusting the presentation to fit the selling situation, such as knowing when to offer solutions and when to
ask for more information
objections
excuses a customer has for not making a purchase
6 techniques to handling objectives
1) Acknowledge and convert the objection: using objection as a reason for buying
2)Postpone: when objection dealt with later
3)Agree and neutralize: agrees, but shows its unimportant
4)Accept the objection: let prospect express views if valid
5)Denial: if objection is based on misinformation, Deny
6)Ignore the objection: customer may be stalling
trial close
Involves asking the prospect to make a decision on some aspect of the purchase
assumptive close
entails asking the prospect to consider choices concerning delivery, warranty, or financing terms under the assumption that a sale has been finalized
urgency close
used to commit the prospect quickly by making reference to the timeliness of the purchase
follow-up stage
making certain the customers purchase has been properly delivered and installed and addressing any difficulties experienced with the use of the item. *Research shows that the cost and effort to obtain repeat sakes from a satisfied customer is roughly half of that necessary to gain a sale from a new customer*
Consultative selling
a need-satisfaction presentation format that focuses on problem identification, where the salesperson serves as an
expert on problem recognition
and resolution
sales management process
Sales plan formulation, sales plan implementation, salesforce evaluation
sales plan formation
1)Setting objectives:central to sales management
2)Organizing the salesforce: basis on geography, customer, product/service
3)Developing Account management policies
Account management policies
specify whom salespeople should contact, what kinds of selling and customer service activities should be engaged in, and how these activities should be carried out
Sales plan implemation
1)Salesforce recruitment and selection
2)Salesforce Training
3)Salesforce Motivation and Compensation
salespeople are paid through 3 compensation plans
1) straight salary: paid fixed fee per week,month,year
2)straight commission: earnings are directly tied to sales
3) combo: specified salary +comission
A sales plan
a statement describing what is to be achieved and where and how the selling effort of salespeople is to be deployed
Major (key) account management
the practice of using team selling to focus on important customers so as to build mutually beneficial, long-term, cooperative relationships
A sales quota
consists of specific goals assigned to a salesperson, sales team, branch sales office, or sales district for a stated time period
Salesforce automation (SFA)
is the use of computer, information, communication, and Internet technologies to make the sales function more effective and efficient
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