Marketing 301 Final (Ch 16, 17, 18 & 19)
a. True.
A cost comparison indicator (such as CPM) should not be used to compare the cost and impact of a television commercial with the cost and impact of a newspaper advertisement. a. True b. False
c. media plan.
A list of the exact magazines, newspapers, and television stations in which an advertisement will appear, along with the dates and times, is a(n) a. advertising message. b. advertising plan. c. media plan. d. advertising appropriation. e. media platform.
merchandise allowance
A manufacturer's agreement to pay resellers certain amounts of money for providing special promotional efforts, such as setting up and maintaining a display
free merchandise
A manufacturer's reward given to resellers that purchase a stated quantity of products
scan-back allowance
A manufacturer's reward to retailers based on the number of pieces scanned
feature article
A manuscript of up to 3,000 words prepared for a specific publication
price war
A price war involves two or more companies engaging in intense price competition, often in an effort to boost market share
consumer sweepstakes
A sales promotion in which entrants submit their names for inclusion in a drawing for prizes
institutional advertising
Advertising that promotes organizational images, ideas, and political issues
reminder advertising
Advertising used to remind consumers about an established brand's uses, characteristics, and benefits
sales promotion
An activity and/or material intended to induce resellers or salespeople to sell a product or consumers to buy it
cooperative advertising
An arrangement in which a manufacturer agrees to pay a certain amount of a retailer's media costs for advertising the manufacturer's products
objective-and-task approach
Budgeting for an advertising campaign by first determining its objectives and then calculating the cost of all the tasks needed to attain them
Integrated marketing communications
Coordination of promotion and other marketing efforts for maximum informational and persuasive impact on customers
fixed costs
Costs that do not vary with the quantity of output produced
competition-matching approach
Determining an advertising budget by trying to match competitors' advertising outlays
native advertising
Digital advertising that matches the appearance and purpose of the content in which it is embedded
C. Introduction.
During which stage of the product life cycle is pioneer advertising most appropriate? a. Recession b. Decline c. Introduction d. Maturity e. Growth
Premiums
Items offered free or at a minimal cost as a bonus for purchasing a product
a. True.
Lack of control over the content and timing of public relations is a limitation in using publicity-based public relations tools. a. True b. False
personal selling
Paid personal communication that attempts to inform customers and persuade them to buy products in an exchange situation
straight commission compensation plan
Paying salespeople according to the amount of their sales in a given time period
illustrations
Photos, drawings, graphs, charts, and tables used to spark audience interest in an advertisement
trade salespeople
Salespeople involved mainly in helping a producer's customers promote a product
point-of-purchase (POP) materials
Signs, window displays, display racks, and similar devices used to attract customers
missionary salespeople
Support salespeople, usually employed by a manufacturer, who assist the producer's customers in selling to their own customers
a. advertising objective.
Suppose State Farm Insurance stated, "We want our advertising to increase our customer base for home and automobile insurance 10 percent by the end of the fiscal year." This would be considered a(n) a. advertising objective. b. target audience goal. c. percent-of-sales approach. d. media plan goal. e. advertising platform.
a. advertising platform.
The basic issues or selling points that an advertiser wants to include in an advertising campaign is (are) the a. advertising platform. b. target audience objectives. c. advertising message. d. advertising objectives. e. media plan.
relationship selling
The building of mutually beneficial long-term associations with a customer through regular communications over prolonged periods of time
b. Reach.
The percentage of consumers in the target audience actually exposed to a particular advertisement in a stated period of time is the definition of a. exposure. b. reach. c. frequency. d. push. e. targeting.
e. people toward whom the advertisements are directed.
The target audience for an advertising campaign is the a. information base on which to develop the campaign. b. sales objective to be achieved by the campaign. c. geographic distribution of persons. d. overall goal of the advertising campaign. e. people toward whom the advertisements are directed.
d. pulsing, continuous, and flighting.
The three general types of media schedules are a. short, medium, and long-term. b. pulsing, beating, and continuous. c. light, heavy, and alternating. d. pulsing, continuous, and flighting. e. morning, afternoon, and evening.
deceptive pricing
The use of false or misleading statements or practices to persuade buyers that a product is a better deal than it really is
a. copy.
The verbal portion of an advertisement, including headlines, body, and signature, is called the a. copy. b. layout. c. script. d. artwork. e. storyboard.
d. Objective-and-task.
To determine how much money to spend on advertising, marketers for a new brand of caffeinated energy drink decided that they wanted the advertising to create awareness of the new flavor in 80% of the energy drink market within one month of introduction. The marketers then determined how much it would cost to reach this goal. This is an example of which one of the following approaches to determining advertising budgets? a. Past-year comparison b. Percent of sales c. Arbitrary allocation d. Objective-and-task e. Competition matching
a. competitive
When Volvo's advertising campaign mentions the Volvo CX60 has the highest safety rating of any European sedan, it is using _______ advertising. a. competitive b. reinforcement c. reminder d. institutional e. defensive
storyboard
a blueprint that combines copy and visual material to show the sequence of major scenes in a commercial
promotion mix
a combination of promotional methods used to promote a specific product
external reference price
a comparison price provided by others
allowance
a concession in price to achieve a desired goal
dealer loader
a gift, often part of a display, given to a retailer that purchases a specified quantity of merchandise
demand curve
a graph of the quantity of products expected to be sold at various prices if other factors remain constant
cost comparison indicator
a means of comparing the costs of advertising vehicles in a specific medium in relation to the number of people reached
price elasticity of demand
a measure of the sensitivity of demand to changes in price
press conference
a meeting used to announce major news events
publicity
a news story type of communication about an organization and/or its products transmitted through a mass medium at no charge
consumer jury
a panel of a product's existing or potential buyers who pretest ads
source
a person, group, or organization with a meaning it tries to share with a receiver or an audience
captioned photograph
a photograph with a brief description of its contents
media plan
a plan that specifies the media vehicles to be used and the schedule for running advertisements
unaided recall test
a posttest in which respondents are asked to identify advertisements they have seen recently but are not given any recall clues
recognition test
a posttest in which respondents are shown the actual ad and are asked if they recognize it
aided recall test
a posttest that asks respondents to identify recent ads and provides clues to jog their memories
internal reference price
a price developed in the buyer's mind through experience with the product
FOB destination
a price indicating the producer is absorbing shipping costs
cash discount
a price reduction given to buyers for prompt payment or cash payment
seasonal discount
a price reduction given to buyers for purchasing goods or services out of season
trade (functional) discount
a reduction off the list price a producer gives to an intermediary for performing certain functions
sales contest
a sales promotion method used to motivate distributors, retailers, and sales personnel through recognition of outstanding achievements
news release
a short piece of copy publicizing an event or a product
viral marketing
a strategy to get consumers to share a marketer's message, often through e-mail or online videos, in a way that spreads dramatically and quickly
buy-back allowance
a sum of money given to a reseller for each unit bought after an initial promotion deal is over
buying allowance
a temporary price reduction to resellers for purchasing specified quantities of a product
freight absorption pricing
absorption of all or part of actual freight costs by the seller
dealer listings
advertisements that promote a product and identify the names of participating retailers that sell the product
reinforcement advertising
advertising that assures users they chose the right brand and tells them how to get the most satisfaction from it
advocacy advertising
advertising that promotes a company's position on a public issue
product advertising
advertising that promotes the uses, features, and benefits of products
pioneer advertising
advertising that tries to stimulate demand for a product category rather than a specific brand by informing potential buyers about the product
predatory pricing
also called undercutting, involves the intent to set a product's price so low that rival firms cannot compete and therefore withdraw from the marketplace
artwork
an advertisement's illustrations and layout
price fixing
an agreement among competing firms to raise, lower, or maintain prices for mutual benefit
buzz marketing
an attempt to incite publicity and public excitement surrounding a product through a creative event
noise
anything that reduces a communication's clarity and accuracy
advertising platform
basic issues or selling points to be included in an advertising campaign
arbitrary approach
budgeting for an advertising campaign as specified by a high-level executive in the firm
percent-of-sales approach
budgeting for an advertising campaign by multiplying the firm's past and expected sales by a standard percentage
uniform geographic pricing
charging all customers the same price, regardless of geographic location
proxemic communication
communicating by varying the physical distance in face-to-face interactions
kinesic communication
communicating through the movement of head, eyes, arms, legs, or torso
tactile communication
communicating through touching
Public Relations
communication efforts used to create and maintain favorable relations between an organization and its stakeholders
promotion
communication to build and maintain relationships by informing and persuading one or more audiences
comparitive advertising
compares the sponsored brand with one or more identified brands on the basis of one or more product characteristics
value conscious
concerned about price and quality of a product
coding process
converting meaning into a series of signs or symbols
decoding process
converting signs or symbols into concepts and ideas
variable costs
costs that vary with the changes in the number of units produced or sold
quantity discounts
deductions from the list price for purchasing in large quantities
primary demand
demand for a product category rather than for a specific brand
selective demand
demand for a specific brand
prospecting
developing a database of potential customers
Recruiting
developing a list of qualified applicants for sales positions
prestige sensitive
drawn to products that signify prominence and status
nonprice competition
emphasizing factors other than price to distinguish a product from competing brands
price competition
emphasizing price as an issue and matching or beating competitors' prices
price discrimination
employing price differentials that injure competition by giving one or more buyers a competitive advantage
pretest
evaluation of advertisements performed before a campaign begin
posttest
evaluation of advertising effectiveness after the campaign
premium money (push money)
extra compensation to salespeople for pushing a line of goods
base-point pricing
geographic pricing that combines factory price and freight charges from the base point nearest the buyer
trade sales promotion methods
methods intended to persuade wholesalers and retailers to carry a producer's products and market them aggressively
noncumulative discounts
one-time price reductions based on the number of units purchased, the dollar value of the order, or the product mix purchased
advertising
paid nonpersonal communication about an organization and its products transmitted to a target audience through mass media
combination compensation plan
paying salespeople a fixed salary plus a commission based on sales volume
straight salary compensation plan
paying salespeople a specific amount per time period, regardless of selling effort
word-of-mouth communication
personal information exchanges of communication that customers share with one another about products, brands, and companies
transfer pricing
prices charged in sales between an organization's units
zone pricing
pricing based on transportation costs within major geographic zones
pull policy
promoting a product directly to consumers to develop strong consumer demand that pulls products through the marketing channel
push policy
promoting a product only to the next institution down the marketing channel
pioneer promotion
promotion that informs consumers about a new product
cents-off offers
promotions that allow buyers to pay less than the regular price to encourage purchase
cumulative discounts
quantity discounts aggregated over a stated time period
geographic pricing
reductions for transportation and other costs related to the physical distance between buyer and seller
demonstrations
sales promotion methods a manufacturer uses temporarily to encourage trial use and purchase of a product or to show how a product works
consumer contests
sales promotion methods in which individuals compete for prizes based on their analytical or creative skills
consumer games
sales promotion methods in which individuals compete for prizes based primarily on chance
rebates
sales promotion techniques in which a consumer receives a specified amount of money for making a single product purchase
consumer sales promotion methods
sales promotion techniques that encourage consumers to patronize specific stores or try particular products
money refunds
sales promotion techniques that offer consumers a specified amount of money when they mail in a proof of purchase, usually for multiple product purchases
support personnel
sales staff members who facilitate selling but usually are not involved solely with making sales
free samples
samples of a product given out to encourage trial and purchase
communication
sharing of meaning through the transmission of information
price-conscious
striving to pay low prices
technical salespeople
support salespeople who give technical assistance to a firm's current customers
advertising appropriation
the advertising budget for a specific time period
marginal revenue
the change in total revenue from an additional unit sold
advertising campaign
the creation and execution of a series of advertisements to communicate with a particular target audience
marginal cost
the extra cost incurred by producing one more unit of a product
average fixed cost
the fixed cost per unit produced
target audience
the group of people at whom advertisements are aimed
receiver
the individual, group, or organization that decodes a coded message
channel capacity
the limit on the volume of information a communications channel can handle effectively
approach
the manner in which a salesperson contacts a potential customer
communications channel
the medium of transmission that carries the coded message from the source to the receiver
layout
the physical arrangement of an advertisement's illustration and copy
break-even point
the point at which the costs of producing a product equal the revenue made from selling the product
F. O. B. Factory
the price of merchandise at the factory before shipment
feedback
the receiver's response to a decoded message
closing
the stage in the personal selling process when the salesperson asks the prospect to buy the product
product placement
the strategic location of products or product promotions within entertainment media content to reach the product's target market
total cost
the sum of average fixed and average variable costs times the quantity produced
average total cost
the sum of the average fixed cost and the average variable cost
barter
the trading of products
team selling
the use of a team of experts from all functional areas of a firm, led by a salesperson, to conduct the personal selling process
price
the value paid for a product in marketing exchange
average variable cost
the variable cost per unit produced
copy
the verbal portion of advertisements
competitive advertising
tries to stimulate demand for a specific brand by promoting its features, uses, and advantages relative to competing brands
regional issues
versions of a magazine that differ across geographic regions
Coupons
written price reductions used to encourage consumers to buy a specific product