Marketing Chapter 16-20

advertising objective
a specific communication task that a campaign should accomplish for a specified target audience during a specified period
unique selling proposition
a desirable, exclusive, and believable advertising appeal selected as the theme for a campaign
medium
the channel used to convey a message to a target market
sales promotion
marketing communication activities other than advertising, personal selling, and public relations, in which a short-term incentive motivates consumers or members of the distribution channel to purchase a good or service immediately, either by lowering the price or by adding value
trade sales promotion
promotion activities directed to members of the marketing channel, such as wholesalers and retailers
advocacy advertising
a form of advertising in which an organization expresses its views on controversial issues or responds to media attacks
advertising campaign
a series of related advertisements focusing on a common theme, slogan, and set of advertising appeals
product placement
a 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 events.
cause-related marketing
the cooperative marketing efforts between a for-profit firm and a nonprofit organization.
crisis management
a coordinated effort to handle all the effects of unfavorable publicity or of another unexpected unfavorable event
public relations
the element in the promotional mix that evaluates public attitudes, identifies issues that may elicit public concern, and executes programs to gain public understanding and acceptance
publicity
an effort to capture media attention, often initiated through press releases that further a corporation’s public relations plans
push money
money offered to channel intermediaries to encourage them to “push” products – that is, to encourage other members of the channel to sell the products
cooperative advertising
an arrangement in which the manufacturer and the retailer split the costs of advertising the manufacturer’s brand
competitive advertising
a form of advertising designed to influence demand for a specific brand
pioneering advertising
A form of advertising designed to stimulate primary demand for a new product or product category
comparative advertising
a form of advertising that compares two or more specifically named or shown competing brands on one or more specific attributes.
trade allowance
a price reduction offered by manufacturers to intermediaries, such as wholesalers and retailers
relationship (consultative) selling
a sales practice that involves building, maintaining, and enhancing interactions with customers in order to develop long term satisfaction through mutually beneficial partnerships
customer-centric
a philosophy under which the company customizes its product and service offering based on data generated through interactions between the customer and the company
knowledge management
the process by which learned information from customers is centralized and shared in order to enhance the relationship between customers and the organization
interaction
the point at which a customer and a company representative exchange information ad develop learning relationships
touch points
areas of a business where customers have contact with the company and data might be gathered
campaign management
developing product or service offerings customized for the appropriate customer segment and then pricing and communicating these offerings for the purpose of enhancing customer relationships
sales process (sales cycle)
the set of steps a salesperson goes through in a particular organization to sell a particular product or service
lead generation (prospecting)
identification of those firms and people most likely to buy the seller’s offerings
referral
a recommendation to a salesperson from a customer or business associate
cold calling
a form of lead generation in which the salesperson approaches potential buyers without any prior knowledge of the prospects’ needs or financial status
lead qualification
determination of a sales prospect’s (1) recognized need, (2) buying power, and (3) receptivity and accessibility
needs assessment
A determination of the customer’s specific needs and wants and the range of options the customer has for satisfying them
sales proposal
a formal written document or professional presentation that outlines how the salesperson’s product or service will meet or exceed the prospect’s needs
negotiation
the process during which both the salesperson and the prospect offer concessions in an attempt to arrive at a sales agreement
follow up
the final step of the selling process, in which the salesperson ensures delivery schedules are met, goods or services perform as promised, and the buyers’ employees are properly trained to use the products
social commerce
a subset of e-commerce that involves the interaction and user contribution aspects of social online media to assist online buying and selling of products and services
crowdsourcing
using consumers to develop and market products
corporate blogs
blogs that are sponsored by a company or one of its brands and maintained by one or more of the company’s employees
social media
any tool or service that uses the internet to facilitate conversations
social media monitoring
the process of identifying and assessing what is to be said about a company, individual, product, or brand
media sharing sites
Web sites that allow users to upload and distribute multimedia content like videos and photos
primary marketing goal
increase customer conversations
blog
A publicly accessible Web page that functions as an interactive journal, whereby readers can post comments on the author’s entries
noncorporate blog
independent blogs that are not associated with the marketing efforts of any particular company or brand
microblogs
blogs with strict post length limits
Marketing goals for social networking sites
-increasing awareness
-targeting audiences
-promoting products
-forging relationships
-highlighting expertise and leadership
-attracting event participants
-performing research
-generating new business
social media and mobile technology: what’s the big deal?
– worldwide, there are almost 6 billion mobile phones in use, 17% of which are smartphones
– the mobile platform is such an effective marketing tool – especially when targeting a younger audience
review sites
Web sites that allow consumers to post, read, rate, and comment on opinions regarding all kinds of products and services
location-based social networking sites
Web sites that combine the fun of social networking with the utility of location-based GPS technology
social news sites
web sites that allow users to decide which content is promoted on a given web site by voting that content up or down
price
that which is given up in exchange to acquire a good or service
revenue
the price charged to customers multiplied by the number of units sold
profit
revenue minus expenses
return on investment (ROI)
net profit after taxes divided by total assets
market share
A company’s product sales as a percentage of total sales for that industry
demand
the quantity of a product that will be sold in the market at various prices for a specified period
supply
the quantity of a product that will be offered to the market by a supplier at various prices for a specified period
elastic demand
a situation in which consumer demand is sensitive to changes in price
inelastic demand
a situation in which an increase or decrease in price will not significantly affect demand for the product
variable cost
a cost that varies with changes in the level of output
fixed cost
a cost that does not change as output is increased or decreased
marginal cost (MC)
the change in total costs associated with a one-unit change in output.
profit maximization
a method of setting prices that occurs when revenue equals marginal cost
marginal revenue (MR)
the extra revenue associated with selling an extra unit of output or the change in total revenue with a one-unit change in output
break-even analysis
a method of determining what sales volume must be reached before total revenue equals total costs
3 pricing objectives
profit-oriented, sales-oriented, status quo
profit-oriented pricing objective
-profit maximization
-satisfactory profits
-target return on investment
sales-oriented pricing objective
-market share
-sales maximization
status quo pricing objective
-maintain existing prices
-meet competition’s prices
markup pricing
the cost of buying the product from the producer, plus amounts for profit and for expenses not otherwise accounted for
keystoning
the practice of marking up prices by 100 percent, or doubling the cost
prestige pricing
charging a high price to help promote a high-quality image
price strategy
a basic, long-term pricing framework, which establishes the initial price for a product and the intended direction for price movements over the product life cycle
penetration pricing
a pricing policy whereby a firm charges a relatively low price for a product initially as a way to reach the mass market
price skimming
a pricing policy whereby a firm charges a high introductory price, often coupled with heavy promotion
status quo pricing
charging a price identical to or very close to the competition’s price
price fixing
an agreement between two or more firms on the price they will charge for a product
predatory pricing
the practice of charging a very low price for a product with the intent of driving competitors out of business or out of a market
promotional allowance (trade allowance)
a payment to a dealer for promoting the manufacturer’s products
value-based pricing
setting the price at a level that seems to the customer to be a good price compared to the prices of other options
base price
the general price level at which the company expects to sell the good or service
flexible pricing (variable pricing)
a price tactic in which different customers pay different prices for essentially the same merchandise bought in equal quantities
leader pricing (loss-leader pricing)
a 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 store
bait pricing
a 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 merchandise
price bundling
marketing two or more products in a single package for a special price
consumer penalty
an extra fee paid by the consumer for violating the terms of the purchase agreement
joint costs
costs that are shared in the manufacturing and marketing of several products in a product line
unfair trade practice acts
laws that prohibit wholesalers and retailers from selling below cost
different types of discounts
quantity, cash, functional, seasonal
FOB origin pricing
a price tactic that requires the buyer to absorb the freight costs from the shipping point
uniform delivered pricing
a price tactic in which the seller pays the actual freight charges and bills every purchaser an identical, flat freight charge
zone pricing
a modification of uniform delivered pricing that divides the United States (or the total market) into segments or zones and charges a flat freight to all customers in a given zone
freight absorption pricing
a price tactic in which the seller pays all or part of the actual freight charges and does not pass them on to the buyer
basing-point pricing
a price tactic that charges freight from a given (basing) point, regardless of the city from which the goods are shipped
price lining
The practice of offering a product line with several items at specific price points
odd-even pricing (psychological pricing)
a price tactic that uses odd-numbered prices to connote bargains and even-numbered prices to imply quality