Principles of Marketing Chapters 12-16

promotion mix
specific blend of promotional tools that the company uses to persuasively communicate customer value and build customer relationships
advertising
any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor
sales promotion
short-term incentives to encourage the purchase or sale of a product or service
personal selling
personal presentation by the firm’s sales force for the purpose of making sales and building customer relationships
public relations
building good relations with the company’s various publics by obtaining favorable publicity, building up a good corporate image, and handling or heading off unfavorable rumors, stories, and events
direct marketing
direct connections with carefully targeted individual customers to both obtain an immediate response and cultivate lasting customer relationships
integrated marketing communications
carefully integrating and coordinating the company’s many communications channels to deliver a clear, consistent, and compelling message about the organization and its products
push strategy
a promotion strategy in which the sales force and trade promotion are used to push the product through channels.
pull strategy
a promotion strategy in which a company spends a lot of money on consumer advertising and promotion to induce final customers to buy the product, creating a demand vacuum that pulls the product through the channel
advertising objective
a specific communication task to be accomplished with a specific target audience during a specific period of time
advertising budget
the dollars and other resources allocated to a product or a company advertising program
affordable method
setting the promotion budget at the level management thinks the company can afford
percentage-of-sales method
setting the promotion budget at a certain percentage of current or forecasted sales or as a percentage of the unit sales price
competitive-parity method
setting the promotion budget to match competitors’ outlays
objective-and-task method
developing the promotion budget by 1) defining specific objectives, 2) determining the tasks that must be performed to achieve these objectives, and 3) estimating the costs of performing these tasks
advertising strategy
the plan by which the company accomplishes its advertising objectives
madison & vine
a term that has come to represent the merging of advertising and entertainment in an effort to break through the clutter and create new avenues for reaching consumers with more engaging messages
creative concept
the compelling big idea that will bring the advertising message strategy to life in a distinctive and memorable way
execution style
the approach, style, tone, words, and format used for executing an advertising message
advertising media
the vehicles through which advertising messages are delivered to their intended audiences
return on advertising investment
the net return on advertising investment divided by the costs of the advertising investment
advertising agency
a marketing services firm that assists companies in planning, preparing, implementing, and evaluating all or portions of their advertising programs
salesperson
an individual representing a company to customers by performing one or more of the following activities: prospecting, communicating, selling, servicing, information gathering, and relationship building
sales force management
analyzing, planning, implementing, and controlling sales force activities
territorial sales force structure
a sales force organization that assigns each salesperson to an exclusive geographic territory in which that salesperson sells the company’s full line
product sales force structure
a sales force organization in which salespeople specialize in selling only a portion of the company’s products or lines
customer sales force structure
a sales force organization in which salespeople specialize in selling only to certain customers or indutries
outward salesforce
salespeople who travel to call on customers in the field
inward salesforce
salespeople who conduct business from their offices via telephone, the Internet, or visits from prospective buyers
team selling
using teams of people from sales, marketing, engineering, finance, technical support, and even upper management to service large, complex accounts
sales quota
a standard that states the amount a salesperson should sell and how sales should be divided among the company’s products
selling process
the steps that salespeople follow when selling, which include prospecting and qualifying, preapproach, approach, presentation and demonstration, handling objections, closing, and follow-up
prospecting
the sales step in which a salesperson or company identifies qualified potential customers
preapproach
the sales step in which a salesperson learns as much as possible about a prospective customer before making a sales call
approach
the sales step in which a salesperson meets the customer for the first time
presentation
the sales step in which a salesperson tells the “value story” to the buyer, showing how the company’s offer solves the customer’s problems
handling objections
the sales step in which a salesperson seeks out, clarifies, and overcomes any customer objections to buying
closing
the sales step in which a salesperson asks the customer for an order
follow-up
the sales step in which a salesperson follows up after the sale to ensure customer satisfaction and repeat business
consumer promotions
sales promotion tools used to boost short-term customer buying and involvement or to enhance long-term customer relationships
event marketing
creating a brand-marketing event or serving as a sole or participating sponsor of events created by others
trade promotions
sales promotion tools used to persuade resellers to carry a brand, give it shelf space, promote it in advertising, and push it to consumers
business promotions
sales promotions tools used to generate business leads, stimulate purchases, reward customers, and motivate salespeople
customer database
an organized collection of comprehensive data about individual customers or prospects, including geographic, demographic, psychographic, and behavioral data
direct-mail marketing
marketing that occurs by sending an offer, announcement, reminder, or other item directly to a person at a particular address
catalog marketing
direct marketing through print, video, or digital catalogs that are mailed to select customers, made available in stores, or presented online
telemarketing
using the telephone to sell directly to customers
direct response television marketing
direct marketing via television, including direct-response television advertising and interactive television advertising
online marketing
efforts to market products and services and build customer relationships over the internet
click-only companies
the so-called dot-coms, which operate online only and have no brick-and-mortar market presence
click-and-mortar companies
traditional brick-and-mortar companies that have added online marketing to their operations
business-to-consumer online marketing
businesses selling goods and services online to final consumers
business-to-business online marketing
businesses using online marketing to reach new business customers, serve current customers more effectively, and obtain buying efficiencies and better prices
consumer-to-consumer online marketing
online exchanges of goods and information between final consumers
consumer-to-business online marketing
online exchanges in which consumers search out sellers, learn about their offers, initiate purchases, and sometimes even drive transaction terms
corporate web site
a web site designed to build customer goodwill, collect customer feedback, and supplement other sales channels rather than sell the company’s products directly
marketing web site
a web site that interacts with consumers to move them closer to a direct purchase or other marketing outcome
online advertising
advertising that appears while consumers are browsing the Web, including display ads, search-related ads, online classifieds, and other forms
viral marketing
the internet version of word-of-mouth marketing: a web site, video, e-mail message, or other marketing event that is so infectious that customers will seek it out or pass it along to friends
e-mail marketing
sending highly targeted, tightly personalized, relationship-building marketing messages via e-mail
spam
unsolicited, unwanted commercial e-mail messages
mobile marketing
marketing to on-the-go consumers through mobile phones, smartphones, tablets, and other mobile communication devices
global firm
a firm that, by operating in more than one country, gains R&D, production, marketing, and financial advantages in its costs and reputation that are not available to purely domestic competitors
economic community
a group of nations organized to work toward common goals in the regulation of international trade
exporting
entering foreign markets by selling goods produced in the company’s home country, often with little modification
joint venturing
entering foreign markets by joining with foreign companies to produce or market a product or service
licensing
entering foreign markets through developing an agreement with a licensee in the foreign market
contract manufacturing
a joint venture in which a company contracts with manufacturers in a foreign market to produce the product or provide its service
management contracting
a joint venture in which the domestic firm supplies the management know-how to a foreign company that supplies the capital; the domestic firm exports management services rather than products
joint ownership
a cooperative venture in which a company creates a local business with investors in a foreign market, who share ownership and control
direct investment
entering a foreign market by developing foreign-based assembly or manufacturing facilities
standardized global marketing
an international marketing strategy that basically uses the same marketing strategy and mix in all of the company’s international markets
adapted global marketing
an international marketing approach that adjusts the marketing strategy and mix elements to each international target market, which creates more costs but hopefully produces a larger market share and return
straight product extension
marketing a product in a foreign market without making any changes to the product
product adaptation
adapting a product to meet local conditions or wants in foreign markets
product invention
creating new products or services for foreign markets
communication adaptation
a global communication strategy of fully adapting advertising messages to local markets
whole-channel view
designing international channels that take into account the entire global supply chain and marketing channel, forging an effective global value delivery network
sustainable marketing
socially and environmentally responsible marketing that meets the present need of consumers and businesses while also preserving or enhancing the ability of future generations to meet their needs
consumerism
organized movement of citizens and government agencies designed to improve the rights and power of buyers in relation to sellers
environmentalism
organized movement of concerned citizens and government agencies designed to protect and improve people’s current and future living environment
environment sustainability
a management approach that involves developing strategies that both sustain the environment and produce profits for the company
consumer-oriented marketing
principle of sustainable marketing that holds a company should view and organize its marketing strategies from the consumer’s point of view
customer-value marketing
a company should put most of its resources into customer value building marketing investment
innovative marketing
requires a company to see real product and marketing improvements
sense of mission marketing
a company should define it’s mission in broad social terms rather than narrow product terms
societal marketing
a company should make marketing decisions by considering consumer’s wants, requirements, long run interests
deficient products
products that have neither immediate appeal nor long-term benefits
pleasing products
products that give high immediate satisfaction but may hurt consumers in the long run
salutary products
products that have low immediate appeal but may benefit consumers in the long run
desirable products
products that give both immediate satisfaction and high long-term benefits