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Questions and Answers List

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the function of forming persuading and influencing a purchase decisionPromotion
The coordination of all promotional activities - media advertising, direct mail, personal selling, sales promotion, and public relations - to produce a unified, customer focused promotional strategyIntegrated Marketing communications (IMC)
- must take a broad view and plan for all form of customer contact - create a unified personality and message for the good, brand or service - elements include personal selling, advertising, sales promotion, publicity and public relationsIntegrated marketing communications 2
the combination of the personal and non personal selling that marketers use to meet the needs of a firms target customers and to effectively and efficiently communicate its message to themThe Promotional Mix
the most basic form of promotion: a direct person to person promotional presentation to a potential buyer -many companies consider personal selling the key to marketing effectiveness - a seller matches a firms good or services to the needs of a particular client or customer - business often spend 5-10 times as much on personal selling as on advertisingPersonal Selling
forms of selling such as advertising, sales promotion, direct marketing, and public relationsnon personal selling
promotion can also be used to differentiate a firm's offerings from the competition. by using a concept called positioning - marketers try to establish their products in the minds of consumers as different from other products in factors such as attributes, price, quality or of a good or servicepromotional strategies - Differentiate product
a major form of advertising is information oriented giving the consumers information on the productPromotional Strategies - Providing information
increasing sales volume is the most common objective of a promotional strategy. By targeting a specific audience to target your product tooPromotional Strategies - Increasing sales
sales stabilizing is another goal of promotional strategies - during slow sales periods some firms use employee sales contests. these contests are meant to motivate sales people by offer prizes such as vacations tv smart phones and cash to those who meet certain sales goalspromotional strategies - stabilizing sales
same promotional strategies improve a products value by explaining the hidden benefits of ownershippromotional strategy - highlight the product's value
a form of promotion where marketers pay placement fees to have their products featured in various media, from newspapers and magazines to televisions and moviespromotional planning - Product placement
innovative, low cost marketing efforts designed to get consumers attention in unusual waysGuerilla Marketing
paid non personal communication usually targeted at large numbers of potential buyers - advertising expenditures are great; automotive retail, and telecommunications firms spend the most on advertising in North America - carmekers spend $20 billion on advertising yearly - consumers are bombarded with many messages - firms needs to be more and more creativeAdvertising
messages designed to sell a particular good or serviceproduct advertising
messages that promote concepts, ideas, or philosophies. It can also promote goodwill towards industries, companies, organizations, or government entitiesInstitutional advertising
a form of institutional advertising that promotes a specific viewpoint on a public issue as way to influence public opinion and the political processCause advertising
is used to build initial demand for a product in its introductory phaseinformative advertising
attempts to improve the competitive status of a product, institution, or concept, usually in its growth and maturity stagespersuasive advertising
compares products directly with their competitors, either by name or by inferencecomparative advertising
maintains awareness of the importance and usefulness of a product in its late maturity or declineReminder-Oriented advertising
outdoor - 7% radio - 7% newspapers - 17% 21% television - 40%Advertising media
television - easiest way to reach a large number of consumers - leading but most expensive advertising mediumtypes of advertising - television
- dominate local advertising - relatively short life spantypes of advertising - newspapers
commuters in cars are a captive audience - internet audio offers new opportunitiestypes of advertising - Radio
widgets or gadgets are small television scree images carrying marketing messages; contain embedded links to home sitesOnline and interactive advertising
providing funds for a sporting or cultural event in exchange for a direct association with the event - exposure to target audience - association with images of the eventsponsorship
forms of promotion such as coupons, product samples, and rebates that support advertising and personal sellingSales promotion
- marketers generally choose free/reduced [rice premiums likely to get consumers thinking and caring about a brand and product - coupons attract new customers, but focus on price rather than brand loyalty - rebates increase purchase rates, promote multiple purchases, and reward product users three of every four consumers who receive a sample will try itpremiums, coupons, rebates, samples
- introduction of new products -offer cash, merchandise, or travel as a prizes to participating winners subject to legal restrictionsgames, contests, sweepstakes
- promotional items that prominently display a firms name. logo or business sloganSpecialty advertising
- sales promotion geared to marketing intermediaries, note to final consumers - encourage retailers -to stock new products - to continue carrying existing products effectively to consumers - point of pruchase (pop) advertising - trade showstrade oriented promotions
1. few geographically concentrated customers 2. Product is technically complex, involves trade-ins. or requires special handling 3. product carries a relatively high price 4. product moves through direct-distribution channelsfirms focus on personal selling under four conditions
a form of selling used mostly at the wholesale and retail levels; involves identifying customer needs, and completing ordersorder processing - sales tasks
a persuasive type of promotional presentation - promotes a good or service whose benefits are not readily apparent or whose purchase decision requires a close analysis of alternativescreative selling - sales tasks
an indirect form of selling in which the representative promotes goodwill for a company or provides technical or operational assistance to customermissionary selling - sales tasks
personal selling by telephone, which provides a firms marketers with a high retirn on their expenditures an immediate responseTelemarketing - sales tasks
step 1 - prospecting and qualifying step 2 - approach step 3 - presentation step 4 - demonstration step 5 - handling objections step 6 - closing ask for order step 7 - follow upthe sales process 7 steps
prospecting: is identifying potential customers qualifying: is identifying potential customers who have financial ability and buying authority - done through direct mail responses, personal visits from sales representatives, email and social mediaprospecting and qualifying - sales process
is analyzing available data about a prospective customer product lines and other pertinent informationApproaching - sales process
salespeople communicate promotional messages. they may describe the major features of their products, highlights the advantaged and cite examples of satisfied consumerspresentation - sales process
reinforces the message salesperson has been communicatingdemonstation - sales process
use objections as an opportunity to answer questions and explain how the product will benefit the customerobjections - sales process
the closing is the critical point in the sales process; asking the customer to buy - even if the sale is not made, the salesperson should regard the interaction as the beginning of a potential relationshipthe closing - sales process
- an important part of building a long-lasting relationship - may determine whether the customer will make another purchasefollow-up - sales process
an organization communications and relationships with its various public audiences - this is an efficient, indirect communications channel for promoting products, It can be publicize products and help create and maintain a positive image of the companypublic realtions
the non personal stimulation of demand for a good, service, place, idea, event, person, or organization, by unpaid placement of information in print broadcast mediapublicity
personal selling to market an item to wholesalers and retailers in a companies distribution channels - companies promote the product to members of the marketing channel, not to end userspushing strategy
promote of a product by generating consumer demand for it, mainly through advertising and sales promotion appeals - potential buyers will request that their suppliers - retailers or local distributors - carry the product, thereby pulling it through the distribution channel most marketing situations require combinations of push and pull strategiespulling strategy
allowances that marketers provide to share with channel partners the cost of local advertising o their firm's productscooperative advertising
the exchange value of a good or serviceprice
common goals that are included in the strategic plans of most firms - maximize profits by reducing costs maintain price while reducing costsprofitability objectives
pricing decisions that are based on market share, the percentage of a market controlled by a certain company or productvolume objectives
meet competitors price competitors cannot legally work together to set pricesPricing to meet competition
- establishing a relatively high price to develop and maintain an image of quality and exclusiveness - recognitions of the role of price in communicating an overall image for the firm and its products - products that are limited in distribution or so popular that they become scarce generate their own prestigePrestige Pricing
calculating total costs per unit and then adding markups to cover overhead costs and generate profit - totals all costs associated with offering a product in the market, including research and development, production, transportation, and marketing expenses - markup is added to cover any unexpected or overlooked expenses and provides a profit - total is the selling price actual markup used caries by such factors as brand image and type of storeCost based pricing
the price-related technique used to calculate the minimum sales volume price level to cover all costs breakeven point (in units) = total fixed costs / contribution to fixed costs per unit breakeven point (in dollars)breakeven analysis
a strategy that sets an intentionally high price relative to the prices of competing products - helps marketers set a price that distinguishes a firm's high-end product from those of competitorsSkimming pricing - alternative pricing
a strategy that sets a low price as a major marketing tactic - often used with new productspenetration pricing - alternative pricing
a strategy of maintaining continuous low prices instead of using short term price-cutting tactics such as cents off coupons, rebates and special saleseveryday low pricing (EDLP) - alternative pricing
is used to attract customers by dropping prices for a set period of timediscount pricing
a strategy that tries ro reduce the emphasis on price competition by matching other firm' prices and by focusing their own marketing efforts on the product, distribution, and promotional elements of the marketing mixcompetitive pricing
- consumers' perceptions and higher quality - high price = prestige and higher quality low price = less prestige and lower qualityprice-quality
A pricing method that uses uneven amounts to make prices appear to be less than really are - examples: 1.99; 9.95odd pricing:
creates a message that is novel for entertaining enough for consumers to forward to others, spreading it like a virus. its cheaper then TV.virtual advertising