Marketing

Geographic Segmentation

markets are divided into different geographic units.

80-20 rule

meaning 20 percent of their buyers account for 80 percent of their sales volume.

Channel

method by which the communication travels from the source or sender to the receiver.

Comparative Advertising

practice of either directly or indirectly naming competitors in an ad and comparing one or more specific attributes.

Marketing objectives

refer to what is to be accomplished by the overall marketing program. They are often stated in terms of sales, market share, or profitability.

Salient Attributes

(those that are important to consumers and are the basis for making a purchase decision).

Margin Analysis

As advertising/promotional expenditures increase, sales and gross margins also increase to a point, but then they level off.

Direct marketing

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Behavioristic Segmentation

Dividing consumers into groups according to their usage, loyalties, or buying responses to a product

Demographic Segmentation

Dividing the market on the basis of demographic variables such as age, sex, family size, education, income, and social class

Psychographic Segmentation

Dividing the market on the basis of personality, lifecycles, and/or lifestyles

Economies of Scale

Larger advertisers can maintain advertising shares that are smaller than their market shares because they get better advertising rates, have declining average costs of production, and accrue the advantages of advertising several products jointly. In addition, they are likely to enjoy more favorable time and space positions, cooperation of middle people, and favorable publicity.

Psychoanalytic Theory

Many motives for purchase and/ or consumption may be driven by deep motives one can determine only by probing the subconscious.

Ad Execution-Related Thoughts

Many of the thoughts receivers have when reading or viewing an ad do not concern the product and/or message claims directly. Rather, they are affective reactions representing the consumer’s feelings toward the ad. These thoughts may include reactions to ad execution factors such as the creativity of the ad, the quality of the visual effects, colors, and voice tones. can be either favorable or unfavorable.

Mass Media

Nonpersonal channels, since the message they contain is directed to more than one person and is often sent to many individuals at one time.

Promotional Push Strategy

Programs designed to persuade the trade to stock, merchandise, and promote a manufacturer’s products. The goal of this strategy is to push the product through the channels of distribution by aggressively selling and promoting the item to the resellers, or trade.

Source Bolsters

Receivers who react favorably to the source generate favorable thoughts,

External Search

Searching for information using outside sources. External sources of information include:

Selective Perception

Selectivity occurs throughout the various stages of the consumer’s perceptual process. Perception may be viewed as a filtering process in which internal and external factors influence what is received and how it is processed and interpreted. The sheer number and complexity of the marketing stimuli a person is exposed to in any given day require that this filtering occur. Selective perception may occur at the exposure, attention, comprehension, or retention stage of perception

Benefit Segmentation

The grouping of consumers on the basis of attributes sought in a product

Internal Search

The initial search effort often consists of an attempt to scan information stored in memory to recall past experiences and/or knowledge regarding various purchase alternatives.

Source

The sender of a communication is the person or organization that has information to share with another person or group of people. The source may be an individual (say, a salesperson or hired spokesperson, such as a celebrity, who appears in a company’s advertisements) or a nonpersonal entity (such as the corporation or organization itself).

Marketing mix

These four Ps— product, price, place (distribution), and promotion—are elements. task of marketing is combining these four elements into a marketing program to facilitate the potential for exchange with consumers in the marketplace.

Direct Channels

This type of channel arrangement is sometimes used in the consumer market by firms using direct-selling programs, such as Avon, Tupperware, and Mary Kay, or firms that use direct-response advertising, telemarketing, or the Internet to sell their products.

S-shaped response curve

a budgetary amount is established (usually at an executive level) and then the monies are passed down to the various departments. essentially predetermined and have no true theoretical basis. Top-down methods include the affordable method, arbitrary allocation, percentage of sales, competitive parity, and return on investment

Exchange

a central concept in marketing and the use of the basic marketing activities to create and sustain relationships with customers. For exchange to occur there must be two or more parties with something of value to one another, a desire and ability to give up that something to the other party, and a way to communicate with each other.

Want

a desire for something one does not have.

Cognitive Dissonance

a feeling of psychological tension or postpurchase doubt that a consumer experiences after making a difficult purchase choice. more likely to occur in important decisions where the consumer must choose among close alternatives (especially if the unchosen alternative has unique or desirable features that the selected alternative does not have).

Personal selling

a form of person-to-person communication in which a seller attempts to assist and/or persuade prospective buyers to purchase the company’s product or service or to act on an idea.

Brand Loyalty

a preference for a particular brand that results in its repeated purchase; of course, brand loyalty is not limited to nondurables.

Direct-response advertising

a product is promoted through an ad that encourages the consumer to purchase directly from the manufacturer. Traditionally, direct mail has been the primary medium for direct-response advertising, although television, magazines, and the Internet have become increasingly important media.

Marketing plan

a written document that describes the overall marketing strategy and programs developed for an organization, a particular product line, or a brand.

Advertising Creativity

ability to generate fresh, unique, and appropriate or relevant ideas that can be used as solutions to communication problems.

Psychosocial Consequences

abstract outcomes that are more intangible, subjective, and personal, such as how a product makes you feel or how you think others will view you for purchasing or using it.

Return on Investment (ROI) Budgeting Method

advertising and promotions are considered investments, like plant and equipment. Thus, the budgetary appropriation (investment) leads to certain returns.

interactive media

allow for a two-way flow of communication whereby users can participate in and modify the form and content of the information they receive in real time.

Conditioned Stimulus

any form of action that has been programmed to enact a response. example: pavlov’s bell

Market Opportunities

areas where there are favorable demand trends, where the company believes customer needs and opportunities are not being satisfied, and where it can compete effectively.

Communications task

as opposed to a marketing task, can be performed by, and attributed to, advertising rather than to a combination of several marketing factors.

Internal analysis

assesses relevant areas involving the product/service offering and the firm itself. The capabilities of the firm and its ability to develop and implement a successful promotional program, the organization of the promotional department, and the successes and failures of past programs should be reviewed.

Classical Conditioning

assumes that learning is an associative process with an already existing relationship between a stimulus and a response. example of this type of learning comes from the studies done with animals by the Russian psychologist Pavlov. important principle is repetition, or the frequency of the association.

Information Processing Model

assumes the receiver in a persuasive communication situation like advertising is an information processor or problem solver. McGuire suggests that the series of steps a receiver goes through in being persuaded constitutes a response hierarchy. The stages of this model are similar to the hierarchy of effects sequence; attention and comprehension are similar to awareness and knowledge, and yielding is synonymous with liking. McGuire’s model includes a stage not found in the other models: retention, or the receiver’s ability to retain that portion of the comprehended information that he or she accepts as valid or relevant. This stage is important since most promotional campaigns are designed not to motivate consumers to take immediate action but rather to provide information they will use later when making a purchase decision.

Promotional mix

basic tools used to accomplish an organization’s communication objectives

Clipping Service

clips competitors’ ads from local print media, allowing the company to work backward to determine the cumulative costs of the ads placed.

DAGMAR(Defining Advertising Goals for Measured Advertising Results)

communications effects are the logical basis for advertising goals and objectives against which success or failure should be measured.

Refutational Appeal

communicator presents both sides of an issue and then refutes the opposing viewpoint. refutational appeals tend to “inoculate” the target audience against a competitor’s counterclaims, they are more effective than one-sided messages in making consumers resistant to an opposing message.

Functional Consequences

concrete outcomes of product or service usage that are tangible and directly experienced by consumers. Example: taste of a soft drink or a potato chip

Buildup approach

consisting of three steps: (1) defining the communications objectives to be accomplished, (2) determining the specific strategies and tasks needed to attain them, and (3) estimating the costs associated with performance of these strategies and tasks. The total budget is based on the accumulation of these costs.

Standard Learning Model

consists of a learn → feel → do sequence. Information and knowledge acquired or learned about the various brands are the basis for developing affect, or feelings, that guide what the consumer will do (e.g., actual trial or purchase). In this hierarchy, the consumer is viewed as an active participant in the communication process who gathers information through active learning. Ray suggests the standard learning hierarchy is likely when the consumer is highly involved in the purchase process and there is much differentiation among competing brands. High-involvement purchase decisions such as those for industrial products and services and consumer durables like personal computers, printers, cameras, appliances, and cars are areas where a standard learning hierarchy response process is likely.

Brand Identity

consists of the combination of the name, logo, symbols, design, packaging, and image of associations held by consumers.

Selective Exposure

consumers choose whether or not to make themselves available to information. For example, a viewer of a television show may change channels or leave the room during commercial breaks.

Selective Retention

consumers do not remember all the information they see, hear, or read even after attending to and comprehending it. Advertisers attempt to make sure information will be retained in the consumer’s memory so that it will be available when it is time to make a purchase.

Affect Referral Decision Rule

consumers make a selection on the basis of an overall impression or summary evaluation of the various alternatives under consideration. This decision rule suggests that consumers have affective impressions of brands stored in memory that can be accessed at the time of purchase.

Message

contains the information or meaning the source hopes to convey. The message may be verbal or nonverbal, oral or written, or symbolic.

Value

customer's perception of all of the benefits of a product or service weighed against all the costs of acquiring and consuming it.

Positioning

defined as “the art and science of fitting the product or service to one or more segments of the broad market in such a way as to set it meaningfully apart from competition.”

Public relations

defined as “the management function which evaluates public attitudes, identifies the policies and procedures of an individual or organization with the public interest, and executes a program of action to earn public understanding and acceptance.”

Advertising

defined as any paid form of nonpersonal communication about an organization, product, service, or idea by an identified sponsor.

Clutter

defined as the amount of advertising in a medium. However, for television, clutter is often viewed as including all the nonprogram material that appears in the broadcast environment—commercials, promotional messages for shows, public service announcements (PSAs), and the like.

promotion

defined as the coordination of all seller-initiated efforts to set up channels of information and persuasion in order to sell goods and services or promote an idea. implicit communication occurs through the various elements of the marketing mix, most of an organization’s communications with the marketplace take place as part of a carefully planned and controlled promotional program.

Consumer behavior

defined as the process and activities people engage in when searching for, selecting, purchasing, using, evaluating, and disposing of products and services so as to satisfy their needs and desires.

Payout Plan

determines the investment value of the advertising and promotion appropriation. The basic idea is to project the revenues the product will generate, as well as the costs it will incur, over two to three years. Based on an expected rate of return, the payout plan will assist in determining how much advertising and promotions expenditure will be necessary and when the return might be expected.

Creative Strategy

determines what the advertising message will say or communicate

AIDA model

developed to represent the stages a salesperson must take a customer through in the personal-selling process. This model depicts the buyer as passing successively through attention, interest, desire, and action. The salesperson must first get the customer’s attention and then arouse some interest in the company’s product or service. Strong levels of interest should create desire to own or use the product. The action stage in the AIDA model involves getting the customer to make a purchase commitment and closing the sale. To the marketer, this is the most important stage in the selling process, but it can also be the most difficult.

Elaboration Likelihood Model (ELM)

devised by Richard Petty and John Cacioppo to explain the process by which persuasive communications (such as ads) lead to persuasion by influencing attitudes. According to this model, the attitude formation or change process depends on the amount and nature of elaboration, or processing, of relevant information that occurs in response to a persuasive message. High elaboration means the receiver engages in careful consideration, thinking, and evaluation of the other elements of the ad such as the logo, product shot, or headline.

Evaluative Criteria

dimensions or attributes of a product or service that are used to compare different alternatives.

Market Segmentation

dividing a market into distinct groups that (1) have common needs and (2) will respond similarly to a marketing action.

Dissonance/attribution Model

do → feel → learn, occurs in situations where consumers must choose between two alternatives that are similar in quality but are complex and may have hidden or unknown attributes. The consumer may purchase the product on the basis of a recommendation by some nonmedia source and then attempt to support the decision by developing a positive attitude toward the brand and perhaps even developing negative feelings toward the rejected alternative(s). This reduces any postpurchase dissonance or anxiety the consumer may experience resulting from doubt over the purchase

Attractiveness

encompasses similarity, familiarity, and likability.

Fear Appeals

evoke this emotional response and arouse individuals to take steps to remove the threat.

Credibility

extent to which the recipient sees the source as having relevant knowledge, skill, or experience and trusts the source to give unbiased, objective information. There are two important dimensions to credibility, expertise and trustworthiness.

Hierarchy of Needs

five basic levels of human needs, arranged in a hierarchy based on their importance. Check pyramid image

External analysis

focuses on factors such as characteristics of the firm’s customers, market segments, positioning strategies, and competitors, important part of the external analysis is a detailed consideration of customers’ characteristics and buying patterns, their decision processes, and factors influencing their purchase decisions.

sales promotion

generally defined as those marketing activities that provide extra value or incentives to the sales force, the distributors, or the ultimate consumer and can stimulate immediate sales.

Marketing Objectives

generally stated in the firm’s marketing plan and are statements of what is to be accomplished by the overall marketing program within a given time period. Marketing objectives are usually defined in terms of specific, measurable outcomes such as sales volume, market share, profits, or return on investment.

Strategic Marketing Plan

guide the allocation of its resources. usually evolves from an organization’s overall corporate strategy and serves as a guide for specific marketing programs and policies.

Persuasion Matrix

helps marketers see how each controllable element interacts with the consumer’s response process.

Creative Tactics

how the message strategy will be executed.

Sensation

immediate, direct response of the senses (taste, smell, sight, touch, and hearing) to a stimulus such as an ad, package, brand name, or point-of-purchase display.

Word-of-mouth (WOM)

influence that involves informal communication among consumers about products and services and is a very powerful source of information.

Primacy Effect

information presented first is most effective.

Trade Advertising

interest wholesalers and retailers and motivate them to purchase its products for resale to their customers. Trade advertising usually appears in publications that serve the particular industry.

Selective Comprehension

interpreting information on the basis of their own attitudes, beliefs, motives, and experiences. They often interpret information in a manner that supports their own position. For example, an ad that disparages a consumer’s favorite brand may be seen as biased or untruthful, and its claims may not be accepted.

integrated marketing communications (IMC)

involves coordinating the various promotional elements and other marketing activities that communicate with a firm’s customers.promotion

Zero-based communications planning

involves determining what tasks need to be done and which marketing communications functions should be used and to what extent. This approach focuses on the task to be done and searches for the best ideas and media to accomplish it.

Target Marketing

involves four basic steps: identifying markets with unfulfilled needs, segmenting the market, targeting specific segments, and positioning one’s product or service through marketing strategies.

Seeding

involves identifying and choosing the initial group of consumers who will be used to start the diffusion or spreading of a message. Companies that utilize viral marketing must develop a seeding strategy which involves determining how many initial consumers or “seeds” are needed and selecting the right consumers to start the viral process. For example, Glacéau Vitaminwater uses an “influencer seeding model” as part of its strategy to expand the brand into international markets that focuses on trendsetting consumers who are highly creative and closely connected to culture.

Undifferentiated Marketing

involves ignoring segment differences and offering just one product or service to the entire market.

Differentiated Marketing

involves marketing in a number of segments, developing separate marketing strategies for each.

Encoding

involves putting thoughts, ideas, or information into a symbolic form. The sender’s goal is to encode the message in such a way that it will be understood by the receiver. This means using words, signs, or symbols that are familiar to the target audience.

Dissonance Reduction

involves selective learning, whereby the consumer seeks information that supports the choice made and avoids information that would raise doubts about the decision.

Integrated marketing communications management

involves the process of planning, executing, evaluating, and controlling the use of the various promotional-mix elements to effectively communicate with target audiences. The marketer must consider which promotional tools to use and how to integrate them to achieve marketing and communication objectives. Companies also must decide how to distribute the total marketing communications budget across the various promotional-mix elements. What percentage of the budget should be allocated to advertising, sales promotion, the Internet, sponsorships, and personal selling?

Computer simulation models

involving statistical techniques such as multiple regression analysis to determine the relative contribution of the advertising budget to sales. Because of problems associated with these methods, their acceptance has been limited, and quantitative models have yet to reach their potential.

Qualitative media effect

is the influence the medium has on a message.

Recency Effect

last arguments presented are most persuasive.

Competitive Parity

managers establish budget amounts by matching the competition’s percentage-of-sales expenditures.

Benchmark Measures

marketing research study must be conducted to determine prevailing levels of the response hierarchy.

One-sided message

mentions only positive attributes or benefits. most effective when the target audience already holds a favorable opinion about the topic and with a less educated audience.

Innovation Adoption Model

model represents the stages a consumer passes through in adopting a new product or service. Like the other models, it says potential adopters must be moved through a series of steps before taking some action (in this case, deciding to adopt a new product). The steps preceding adoption are awareness, interest, evaluation, and trial. The challenge facing companies introducing new products is to create awareness and interest among consumers and then get them to evaluate the product favorably. The best way to evaluate a new product is through actual use so that performance can be judged. Marketers often encourage trial by using demonstration or sampling programs or allowing consumers to use a product with minimal commitment ( Exhibit 5-8 ). After trial, consumers either adopt the product or reject it.

Carryover effect

monies spent on advertising do not necessarily have an immediate impact on sales. 3 Advertising may create awareness, interest, and/or favorable attitudes toward a brand, but these feelings will not result in an actual purchase until the consumer enters the market for the product, which may occur later.

Source Derogations

negative thoughts about the spokesperson or organization making the claims. Such thoughts generally lead to a reduction in message acceptance.

Problem Recognition

occurs when the consumer perceives a need and becomes motivated to solve the problem. The problem recognition stage initiates the subsequent decision processes.

Internalization

occurs when the receiver adopts the opinion of the credible communicator since he or she believes information from this source is accurate.

Buzz Marketing

one of the new names for what used to be known simply as word-of-mouth communication while terms such as consumer-generated marketing and viral marketing are also used to describe the process.

Advertising Agency

outside firm that specializes in the creation, production, and/or placement of the communications message and may provide other services to facilitate the marketing and promotions process

Receiver

person(s) with whom the sender shares thoughts or information. Generally consumers in the target market or audience who read, hear, and/or see the marketer’s message and decode it.

Sleeper effect

persuasiveness of a message increases with the passage of time.

Purchase Intention

predisposition to buy a certain brand. Purchase intentions are generally based on a matching of purchase motives with attributes or characteristics of brands under consideration. Their formation involves many of the personal subprocesses discussed in this chapter, including motivation, perception, attitude formation, and integration.

Two-sided message

presents both good and bad points. more effective when the target audience holds an opposing opinion or is highly educated.

Perception

process by which an individual receives, selects, organizes, and interprets information to create a meaningful picture of the world. Perception is an individual process; it depends on internal factors such as a person’s beliefs, experiences, needs, moods, and expectations.

Decoding

process of transforming the sender’s message back into thought.

Media Organizations

provide an environment for the firm’s marketing communications message. (provide information or entertainment to their subscribers, viewers, or readers to allow for this)

Specialized Marketing Communication Services/Specialists(SMCS/MCS)

provide services in their areas of expertise. (includes direct-marketing agencies, sales promotion agencies, digital/interactive agencies, and public relations firms)

Collateral Services

provide wide range of support functions used by advertisers, agencies, and media organizations, and specialized marketing communications firms.

Integrated marketing communications plan

provides the framework for developing, implementing, and controlling the organization’s IMC program. Those involved with the IMC program must decide on the role and function of the specific elements of the promotional mix, develop strategies for each element, determine how they will be integrated, plan for their implementation, and consider how to evaluate the results achieved and make any necessary adjustments.

Compliance

receiver accepts the persuasive influence of the source and acquiesces to his or her position in hopes of obtaining a favorable reaction or avoiding punishment.

Peripheral Route to Persuasion

receiver is viewed as lacking the motivation or ability to process information and is not likely to engage in detailed cognitive processing. Rather than evaluating the information presented in the message, the receiver relies on peripheral cues that may be incidental to the main arguments. The receiver’s reaction to the message depends on how he or she evaluates these peripheral cues.

Low-Involvement Hierarchy

receiver is viewed as passing from cognition to behavior to attitude change. This learn → do → feel sequence is thought to characterize situations of low consumer involvement in the purchase process. Ray suggests this hierarchy tends to occur when involvement in the purchase decision is low, there are minimal differences among brand alternatives, and mass-media (especially broadcast) advertising is important.

Response

receiver’s set of reactions after seeing, hearing, or reading the message. can range from nonobservable actions such as storing information in memory to immediate action such as dialing a toll-free number to order a product advertised on television.

Communication objectives

refer to what the firm seeks to accomplish with its promotional program. They are often stated in terms of the nature of the message to be communicated or what specific communication effects are to be achieved.

Contact (or touch) point

refers to each and every opportunity the customer has to see or hear about the company and/or its brands or have an encounter or experience with it.

Publicity

refers to nonpersonal communications regarding an organization, product, service, or idea not directly paid for or run under identified sponsorship.

social media

refers to online means of communication and interactions among people that are used to create, share, and exchange content such as information, insights, experiences, perspectives, and even media themselves.

Subliminal Perception

refers to the ability to perceive a stimulus that is below the level of conscious awareness.

Viral Marketing

refers to the act of propagating marketingrelevant messages through the help and cooperation of individual consumers.

Field of Experience

refers to the experiences, perceptions, attitudes, and values he or she brings to the communication situation.

Divergence

refers to the extent to which an ad contains elements that are novel, different, or unusual.

Wearout

refers to the tendency of a television or radio commercial to lose its effectiveness when it is seen and/or heard repeatedly.

Product Symbolism

refers to what a product or brand means to consumers and what they experience in purchasing and using it.

Relevance

reflects the degree to which the various elements of the ad are meaningful, useful, or valuable to the consumer.

Attitude Toward the Ad

represents the receivers’ feelings of favorability or unfavorability toward the ad.

Conditioned Response

response given from a programmed stimulus. example: pavlov’s dog salivating

Schedules of Reinforcement

result in varying patterns of learning and behavior. Learning occurs most rapidly under a continuous reinforcement schedule, in which every response is rewarded—but the behavior is likely to cease when the reinforcement stops. Marketers must provide continuous reinforcement to consumers or risk their switching to brands that do. Learning occurs more slowly but lasts longer when a partial or intermittent reinforcement schedule is used and only some of the individual’s responses are rewarded.

Source Power

source has power when he or she can actually administer rewards and punishments to the receiver.

Promotional Pull Strategy

spending money on advertising and sales promotion efforts directed toward the ultimate consumer. The goal of a pull strategy is to create demand among consumers and encourage them to request the product from the retailer.

Integrated Marketing Communications Objectives

statements of what various aspects of the IMC program will accomplish. They should be based on the particular communications tasks required to deliver the appropriate messages to the target audience.

Mnemonics

symbols, rhymes, associations, and images that assist in the learning and memory process. Many advertisers use telephone numbers that spell out the company name and are easy to remember (for example, 1-800-GOFEDEX).

Feedback

that part of the receiver’s response that is communicated back to the sender. closes the loop in the communications flow and lets the sender monitor how the intended message is being decoded and received.

Marketing

the activity, set of institutions, and processes for creating, communicating, delivering and exchanging offerings that have value for customers, clients, partners, and society at large.

Clients

the advertisers, people who come asking for advertising needs

Percentages of Sales

the advertising and promotions budget is based on sales of the product. Management determines the amount by either (1) taking a percentage of the sales dollars or (2) assigning a fixed amount of the unit product cost to promotion and multiplying this amount by the number of units sold.

Contribution Margin

the difference between the total revenue generated by a brand and its total variable costs. But, as Robert Steiner says, marginal analysis and contribution margin are essentially synonymous terms.)

Concave-downward function model

the effects of advertising quickly begin to diminish. (Think diminishing returns)

Source

the person involved in communicating a marketing message, either directly or indirectly.

Marketing Channels

the place element of the marketing mix, are “sets of interdependent organizations involved in the process of making a product or service available for use or consumption.”

Hierarchy of Effects Model

the process by which advertising works; it assumes a consumer passes through a series of steps in sequential order from initial awareness of a product or service to actual purchase. A basic premise of this model is that advertising effects occur over a period of time. Advertising communication may not lead to immediate behavioral response or purchase; rather, a series of effects must occur, with each step fulfilled before the consumer can move to the next stage in the hierarchy. This model is also the basis for the classic purchase funnel metaphor that is often used to depict the decision process consumers go through.

Identification

the receiver is motivated to seek some type of relationship with the source and thus adopts similar beliefs, attitudes, preferences, or behavior.

Central Route to Persuasion

the receiver is viewed as a very active, involved participant in the communication process whose ability and motivation to attend, comprehend, and evaluate messages are high. When central processing of an advertising message occurs, the consumer pays close attention to message content and scrutinizes the message arguments.

Cognitive Responses

the thoughts that occur to them while reading, viewing, and/or hearing a communication. These thoughts are generally measured by having consumers write down or verbally report their reactions to a message.

Motives

those factors that compel a consumer to take a particular action.

Support Arguments

thoughts that affirm the claims made in the message. Example: consumer may say (“Ultra Tide looks like a really good product—I think I’ll try it.”)

Counterarguments

thoughts the recipient has that are opposed to the position taken in the message. Example: A consumer may express disbelief or disapproval of a claim made in an ad. (“I don’t believe that any detergent could get that stain out!”)

Noise

unplanned distortion or interference with a message through extraneous factors

Motivation Research

use psychoanalytic techniques to determine consumers’ purchase motivations.

Concentrated Marketing

used when the firm selects one segment and attempts to capture a large share of this market.

Objective and Task Method

uses buildup approach.

Repositioning

usually occurs because of declining or stagnant sales or because of anticipated opportunities in other market positions involves altering or changing a product’s or brand’s position.

Communication

variously defined as the passing of information, the exchange of ideas, or the process of establishing a commonness or oneness of thought between a sender and a receiver.

Multiattribute Attitude Model

views an attitude object, such as a product or brand, as possessing a number of attributes that provide the basis on which consumers form their attitudes.

Competitive Advantage

something special a firm does or has that gives it an edge over competitors.

Market Segments

target markets the company wishes to pursue.

Arbitrary Allocation

virtually no theoretical basis is considered and the budgetary amount is often set by fiat. That is, the budget is determined by management solely on the basis of what is felt to be necessary.

Integration Processes

way product knowledge, meanings, and beliefs are combined to evaluate two or more alternatives. way consumers combine information about the characteristics of brands to arrive at a purchase decision. Analysis of the integration process focuses on the different types of decision rules or strategies consumers use to decide among purchase alternatives

Selective Attention

when the consumer chooses to focus attention on certain stimuli while excluding others.

Brand Equity

which can be thought of as an intangible asset of added value or goodwill that results from the favorable image, impressions of differentiation, and/or the strength of consumer attachment to a company name, brand name, or trademark.