Marketing III
Terms
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- Marginal cost (MC)
- The change in total costs associated with a one-unit change in output.
- Consumer sales promotion
- Sales promotion activities targeting the ultimate consumer.
- Networking
- A process of finding out about potential clients from friends, business contacts, coworkers, acquaintances, and fellow members in professional and civic organizations.
- Competitive advertising
- A form of advertising designed to influence demand for a specific brand.
- Decoding
- Interpretation of the language and symbols sent by the source through a channel.
- Public relations
- The marketing function that evaluates public attitudes, identifies areas within the organization the public may be intertested in, and executes a program of action to earn public understanding and acceptance.
- Pull strategy
- A marketing strategy that stimulates consumer demand to obtain product distribution.
- Pioneering advertising
- A form of advertising designed to stimulate a primary demand for a new product or product category
- 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.
- Unique selling proposition
- A desirable, exclusive, and believable advertising appeal selected as the theme for a campaign.
- Supply
- The quantity of a product that will be offered to the market by a supplier at various prices for a specified period.
- Elasticity of demand
- Consumer's responsiveness or sensitivity to changes in price.
- Cost per contact
- The cost of reaching one member of the target market.
- Extranet
- A private electronic network that links a company with its suppliers and customers.
- Frequency
- The number of times an individual is exposed to a given message during a specific period.
- Break-even analysis
- A method of determining what sales volume must be reached before total revenue equals total costs.
- Media mix
- The combination of media to be used for a promotional campaign
- Pulsing media schedule
- A media scheduling strategy that uses continuous scheduling throughout the year coupled with a flighted schedule during the best sale periods.
- Inelastic demand
- A situation in which an increase or a decrease in price will not significantly affect demand for the product.
- Crisis Management
- A coordinated effort to handle all the effects of unfavorable publicity or of another unexpected unfavorable event.
- Fixed cost
- A cost that does not change as output is increased or decreased.
- Selling against the brand
- Stocking well-known branded items at high prices in order to sell store brands at discounted prices.
- Integrated marketing communications (IMC)
- The careful coordination of all promotional messages for a product or a service to assure the consistency of messages at every contact point where a company meets the consumer.
- Product advertising
- A form of advertising that touts the benefits of a specific good or service.
- Keystoning
- The practice of marking up prices by 100 percent or doubling the cost.
- Publicity
- Public information about a conpany, product, service, or issue appearing in the mass media as a news item.
- Feedback
- The receiver's response to a message.
- Referral
- A reccomendation to a salesperson from 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.
- Advertising campaign
- A series of related advertisements focusing on a common theme, slogan, and set of advertising appeals.
- Flighted media schedule
- A media scheduling strategy in which ads are run heavily ever other month or every two weeks, to achieve a greater impact with an increased frequency and reach at those times.
- Demand
- The quantity of a product that will be sold in the market at various prices for a specified period.
- Promotion
- Communication by marketers that informs, persuades, and reminds potential buyers of a product in order to influence an opinion or elicit a response.
- Advertising response function
- A phenomenon in which spending for advertising and sales promotion increases sales or market share up to a certain level but the produces diminishing returns.
- Trade sales promotion
- Sales promotion activities targeting a marketing channel member, sucha s wholesaler or retailer.
- Unitary Elasticity
- A situation in which total revenue remains the same when prices change.
- 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.
- Loyalty marketing program
- A promotional program designed to build long-term, mutually beneficial relationships between a company and its key customers.
- Advertising
- Impersonal, one way mass communication about a product or organization that is paid for by the marketer.
- Infomercial
- A 30-minute or longer advertisement that looks more like a TV talk show than a sales pitch.
- Sender
- The originator of the message in the communication process.
- Sales presentation
- A formal meeting in which the salesperson presents a sales proposal to a prospective buyer.
- Comparative advertising
- A form of advertising that compares two or more specifically named or shown competing brands on one or more specific attributes.
- Variable cost
- A cost that varies with changes in the level of output.
- Sponsorship
- A public relations strategy in which a company spends money to support an issue, cause, or event that is consistent with corporate objectives, such as improving brand awareness or enhancing corporate image.
- Markup pricing
- The cost of buying the product from the producer plus amounts for profit and for expenses not otherwise accounted for.
- Promotional strategy
- A plan for the optimal use of the elements of promotion: advertising, public relations, personal selling, and sales promotion.
- Profit
- Revenue minus expenses.
- Premium
- An extra item offered to the consumer, usually in exchange for some proof of purchase of the promoted product.
- Profit maximization
- A method of setting prices that occurs when marginal revenue equals marginal cost.
- Competitive advantage
- One or more unique aspects of an organization that cause target consumers to patronize that firm rather than competitors.
- Continuous media schedule
- A media scheduling strategy in which advertising is run steadily throughout the advertising period; used for products in the latter stages of the product life cycle.
- Sale process (cycles)
- The set of steps a salesperson goes through in particular organizations to sell a particular product or service.
- AIDA concept
- A model that outlines the process for achieving promotional goals in terms of stages of consumer involvement with the message; the acronym stands for attention, interest, desire, and action.
- Sales promotion
- Marketing activities- other than personal selling, asvertising, and public relations- that stimulate consumer buying and dealer effectiveness.
- Revenue
- The price charged to customers multiplied by the number of units sold.
- Average total cost (ATC)
- Total cost divided by quantity of output.
- Advocacy advertising
- A form of advertising in which an organization expresses its views on contoversial issues or responds to media attacks.
- 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, or commercial for another product; on the internet; or at special events.
- Relationship selling
- A sales practice that involves building, maintaing, and enhancing interactions with customers in order to develop long-term satisfaction through mutually beneficial partnerships.
- Average variable cost (AVC)
- Total variable cost divided by quantity of output.
- Lead qualification
- Determination of a sales prospect's 1. recognized need, 2. buying pwers, and 3. receptivity and accessibility.
- Advergaming
- Placing advertising messages in Web-based or video games to advertise or promote a product, service, organization or issue.
- Promotional mix
- The combination of promotional tools-inlcuding advertising, public relations, personal selling, and sales promotion- used to reach the target market and fulfill the organization's overall goals.
- Follow-up
- The final step of the selling process, in which the salesperson ensures that delivery schedules are met, that the goods or services perform as promised, and that the buyers' employees are properly trained to use the products.
- Channel
- A medium of communication-such as a voice, radio, or newspaper- for transmitting a message.
- Noise
- Anything that interferes with, distorts, or slows down the transmission of information.
- Interpersonal Communication
- Direct, face-to-face communication between two or more people.
- Prestige pricing
- Charging a high price to help promote a high-quality image.
- Frequent buyer program
- A loyalty program in which loyal consumers are rewarded fro making multiple puchases of a particular good or service.
- Status quo pricing
- A pricing objective that maintains existing prices or meets the competition's prices.
- Coupon
- A certificate that entitles consumers to an immediate price reduction when they buy the product.
- Media planning
- The series of decisions advertisers make regarding the selection and use of media, allowing the marketer to optimally and cost effectively communicate the message to the target audience.
- Market share
- A company's product sales as a percentage of total sales for that industry.
- Push strategy
- A marketing strategy that uses aggressive personal selling and trade advertising to convince a wholesaler or retailer to carry and sell particular merchandise.
- Price equilibrium
- The price at which deman and supply are equal.
- Receiver
- The person who decodes a message.
- Reach
- The number of target consumers exposed to a commercial at least once during a specific period, usually four weeks.
- Corporate blogs
- Blogs that are sponsered by a company or one of its brands and maintained by one or more of the company's employess.
- Personal selling
- A purchase situation involving a personal paid for communication between two people in an attempt to influence each other.
- Needs assessment
- A determination of the customer's specific needs and wants and the range of options the customer has for satisfying them.
- Sampling
- A promotional program that allows the consumer the opportunity to try a product or service for free.
- Rebate
- A cash refund given for the purchase of a product during a specific period.
- Point-of-purchase display
- A promotional display set up at the retailer's location to build traffic, advertise the product, or induce impulse buying.
- 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.
- Noncorporate blogs
- Independent blogs that are not associated with the marketing efforts of any particular company or brand.
- Return on investment (ROI)
- Net profit after taxes divided by total assets.
- Advertising objective
- A specific communication task that a campaign should accomplish for a specified target audience during a sepcified period.
- Encoding
- The conversion of a sender's ideas and thoughts into a message, usually in the form of words or signs.
- Trade allowance
- A price reduction offered by manufacturers to intermediaries, such as wholesalers and retailers.
- Mass communication
- The communication of a concept or message to large audiences.
- Seasonal media schedule
- A media scheduling strategy that runs advertising only during times of the year when the product is most likely to be used.
- Medium
- The channel used to convey a message to a target market.
- Cause-related marketing
- A type of sponsorship involving the association of a for-profit company and a nonprofi organization; through the sponsorship the company's product or service is promoted, and money is raised for the nonprofit.
- Negotiation
- The process during which both the salesperson and the prospect offer special concessions in an attempt to arrive at a sales agreement.
- Yield management systems (YMS)
- A technology for adjusting prices that uses complex mathematical software to profitability fill unused capacity by discounting early purchases, limiting early sales at these discounted prices, and overbooking capacity.
- Communication
- The process by which we exchange or share meanings through a common set of symbols.
- Institutional advertising
- A form of advertising designed to enhance a company's image rather than promote a particular product.
- Preapproach
- A process that describes the "home-work" that must be done by a salesperson before he or she contacts a prospect.
- Audience selectivity
- The ability of an advertising medium to reach a precisely defined market.
- Media schedule
- Designation of the media, the specific publications or programs, and the insertion dates of advertising.
- Cooperative advertising
- An arrangement in which the manufacturer and the retailer split the costs of advertising the manufacturer's brand.
- Price
- That which is given up in an exchange to acquire a good or service.
- Elastic demand
- A situation in which consumer demand is sensitive to changes in price.