Mkt Test 5

  1. Promotion
    communicating information between the seller and the potential buyer or others in the chanel to influence attitudes and behavior
  2. personal selling
    direct spoken communication between sellers and potential customers.
  3. mass selling
    communicating with large numbers of potential customers at the same time.
  4. advertising
    any paid form of non-personal presentation of ideas, goods, or services by an identified sponsor.
  5. publicity
    any UNPAID form of nonpersonal presentation of ideas, goods or services.
  6. sales promotion
    promotion activities - other than advertising, publicity and personal selling - that stimulate interest, trial or purchase by final customers or others in the channel.
  7. sales managers
    concerned with managing personal selling.
  8. advertising managers
    manage their company's mass-selling effort - in tv, magazine, newspaper and other media.
  9. public relations
    communication with noncustomers, including labor, public interest groups, stockholders and the gov.
  10. sales promotion managers
    manage their company's sales promotion effort.
  11. integrated marketing communications
    the intentinal coordination of every communication from a firm to a target customer to convey a consistent and complete message.
  12. Three basic objectives of promotion
    informing, persuading and reminding
  13. AIDA model
    • to get Attention
    • to hold Interest
    • to arouse Desire
    • to obtain an Action
  14. communication process
    a source trying to reach a receiver with a message.
  15. source
    sender of the message
  16. receiver
    the sender sends the message to the receiver. usually a potential customer
  17. noise
    any distraction that reduces the effectiveness of the communication process.
  18. encoding
    the source deciding what it wants to say and translating it into words or symbols that will have the same meaning ot the receiver.
  19. decoding
    the receiver translating the message.
  20. message channel
    the carrier of the message.
  21. pushing
    using normal promotion effort - personal selling, advertising and sales promotion - tohelp sell the whole marketing mix to possible channel members.
  22. pulling
    getting customers to ask intermediaries for the product.
  23. adoption curve
    shows when different groups accept ideas.
  24. innovators
    the first to adopt. they are eager to try a new idea and willing to take risks. young and well educated.
  25. early adopters
    well respected by their peers and often are opinion leaders. they tend to be younger, more movile and more creative than later adopters.
  26. Groups opinion leaders influence:
    early majority
    avoid risk and wait to consider a new idea after mnay early adopters have tried it and liked it.
  27. Groups opinion leaders influence:
    late majority
    are cautious about new ideas. opften are older and more set in their ways, so they are less likely to follow the early adopters.
  28. Groups opinion leaders influence:
    laggards or nonadopters
    prefer to do things the way they've been done in the past and are very suspicious of new ideas. they tend to be older and less well educated.
  29. primary demand
    demand for the general product idea, not just for the company's own brand.
  30. selective demand
    demand for a company's own brand. the main job is to persuade customers to buy and keep buying the company's product. `
  31. product advertising
    • tries to sell a product.
    • Three parts: pioneering, compatitive and reminder.
  32. institutional advertising
    promotes and organization's image, reputation or ideas rather than a specific product.
  33. pioneering advertising
    tries to develop primary demand for a product category rather than a demand for a specific brand.
  34. competitive advertising
    tries to develop selective demand for a specific brand.
  35. direct type
    aims for immediate buying actions.
  36. indirect type
    points out advantages to affect future buying decisions.
  37. comparative advertising
    makng specific brand comparisons, using actual product names.
  38. reminder advertising
    tries to keep the product's name before the public.
  39. advertising allowances
    price reductions to firms further along in the channel to encourage them to advertise or otherwise promote the firm's products locally.
  40. cooperative advertising
    involves producers sharing in the cost of ads with wholesalers or retailers.
  41. copy thrust
    what the words and illustrations should communicate.
  42. advertising agencies
    • specialists in planning and handling mass-selling details for advertisers.
    • independent of the advertiser and have an outside viewpoint.
  43. corrective advertising
    ads to correct deceptive advertising.
  44. price
    • what a customer must give up to get the benefits offered by the rest of a firm's marketing mix, so it plays a direct role in shaping customer value.
    • the amount of money that is charged for something of value.
  45. target return objective
    sets a specific level of profit as an objective. Often this amount is stated as a percentage of sales or of capital investment.
  46. profit maximization objective
    seeks to get as much profit as possible. Doesnt always lead to high prices.
  47. sales oriented objective
    • seeks some level of unit sales, dollar sales or share of market - without referring ot profit.
    • focused on sales growth.
  48. status quo objectives
    • don't-rock-the-pricing-boat objectives.
    • They want to stabilize prices, or meet competition or even avoid competition.
  49. nonprice competition
    • aggressive action on one or more of the Ps other than price.
    • focus on increasing sales with strategies that involve other things than price.
  50. administered prices
    • consciously set prics.
    • instead of letting daily market forces decide their prices, most firms set their own prices.
  51. one-price policy
    • offering the same price to all customers who purchase products under essentially the same conditions and in the same quantities.
    • non negotiable.
  52. flexible-price policy
    • offering the same product and quantities to different customers at different prices.
    • negotiable prices.
  53. 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.
  54. when to use skimming strategy
    • - demand is likely to be inelastic during intro.
    • - the market can be broekn into distinctive price segments
    • - safer strategy when elasticity of demand is uknown.
    • - if cash is needed to find expansion.
    • - there is a realistic perceived value in the product or service.
  55. penetration pricing policy
    tries to sell the whole market at one low price.
  56. competitive pricing strategy
    competing with similar/same prices as competitors
  57. introductory price dealing
    temporary price cuts - to speed products into a market and get customers to try them.
  58. basic list prices
    the prices final customers or users are normally asked to pay for products.
  59. discounts
    reductions from list price given by a seller to buyers who either give up some marketing function or provide the function themselves.
  60. quantity discounts
    discounts offered to encourage customers to buy in larger amounts.
  61. cumulative quantity discounts
    apply to purchases over a given period, such as a year, and the discount usually increases as the amount purchased increases.
  62. noncumulatie quantity discounts
    apply only to individual orders.
  63. seasonal discounts
    discounts offered to encourage buyers to buy earlier than present demand requires.
  64. Net
    meand that payment for the face value of the invoice is due immediately
  65. cash discounts
    reductions in price to encourage buyers to pay their bills quicly.
  66. 2/10, net 30
    meand the buyer can take a 2% discount off the face value of the invoice if the invoice is paid within 10 days, otherwise the full face value is due within 30 days.
  67. trade (functional) discount
    is a list price reduction given to channel members for the job they are going to do.
  68. sale price
    a remporary discount from the list price.
  69. everyday low pricing
    setting a low list price rather thanrelying on requent sales, discoutns or allowances.
  70. allowances
    like discounts, are gien to final customers, consumers or channel members for doing something or accepting less of something.
  71. advertising allowances
    price reductions given to firms in the channel to encourage them to advertise or otherwise promote the supplier's products locally.
  72. stocking allowances
    sometimes called slotting allowances, are given to an intermediary to get shelf space for a product.
  73. push money (prize money) allowances
    sometimes called PMs or spiffs - are given to retailers by manufacturers or wholesalers to pass on to the retailers' salesclerks for aggressively selling certain items.
  74. trade-in allowance
    a price reduction given forr used products when similar new products are bought.
  75. rebates
    refunds paid to consumers after a purchase.
  76. F.O.B.
    • free on board some vehicle at some place.
    • the seller pays the cost of loading the products onto some behicle, then title to the products passes to the buyer.
  77. zone pricing
    making an average freight charge to all buyers within specific geographic areas.
  78. uniform delivered pricing
    making an average freight charge to all buyers.
  79. freight-absorption pricing
    absorbing freight cost so that a firm's delivered price meets that of the nearest competitor.
  80. value pricing
    setting a fair price level for a marketing mix that really gives the target market superior customer value.
  81. unfair trade practice acts
    put a lower limit on prices, especially at the wholesale and retail levels.
  82. dumping
    pricing a product sold in a foreign market bellow the cost of producing it or at a price lower than in its domestic markets.
  83. phony list prices
    prices customers are shown to suggest that the price has been discounted from list.
  84. Wheeler Lea Amendment
    `bans "unfair or deceptive acts in commerce."
  85. price fixing
    • competitors getting together to raise, lower or stabilize prices.
    • illegal in the united states!
  86. Robinson-Patman Act
    makes illegal any price discrimination
  87. price discrimination
    selling the same products to different buyers at different prices, if it injures competition.
Card Set
Mkt Test 5
Mkt test 5