Mktg 321 Final Exam

the law of divine intervention

"all skill is in vain when an angel pees in the touchhole of your musket"

Murphy's sixth law

"if you perceive that there are four possible way which a procedure can go wrong and circumvent these, then a fifth way, unprepared for, will promptly develop"

great service

'what do you do for your customers that they can't get anywhere else?' - this kind of service: Differentiates your business, Solidifies customer relationships, Allows you to compete on value rather than price, and is ultimately more profitable. Customer wants *value* when purchasing goods/services (what I get / what I pay)

development of services

(aspect of developing and managing marketing mixes for services) - a service offered by an organization generally is a package, or bundle, of services consisting of a core service and 1+ supplementary services. *Keys to development:* customization/personalization; standardized packages to offer; market promises to the customer; uniforms for salespeople; encourage customers to share responsibility

distribution of services

(aspect of developing and managing marketing mixes for services) - marketers deliver services in a variety of ways, in-facility, face-to-face, or at 'arm's length. *Keys to distribution:* use appointments and reservations for scheduling delivery of services; increase supply of service through use of multiple sites and contact providers; increase level of automated contact

promotion of services

(aspect of developing and managing marketing mixes for services) - promotion of services typically includes tangible cues that symbolize the service. *Keys to promotion:* show service as a tangible expression of customers' lifestyles; marketers/service providers more likely to promote price, guarantees, performance documentation, availability, and training/certification of personnel; personal selling; trial basis; word-of-mouth communication

price of services

(aspect of developing and managing marketing mixes for services) - services should be priced with consumer price sensitivity, the nature of the transaction, and costs in mind. *Keys to pricing:* demand-based pricing; raise prices for time-sensitive services during their peak demand periods; bundled prices; price-quality association; market conditions play a factor

media schedules

(aspect of media planning) media schedules decisions are affected by numerous factors, such as target audience characteristics, product attributes, product personality, customer media behavior, and size of the advertising budget. There are 3 general types of __: *1) continuous* (ads run at constant level), *2) flighting* (ads run periodically, alternating), and *3) pulsing* (combines previous two)

heterogeneity

(characteristic of services) - __ *or variation in quality, it increases as labor intensiveness increases*. Nature of human behavior, it is very difficult for service providers to maintain a consistent quality of service delivery. Service quality is difficult to control and difficult to standardize, but *hetero allows for customization*. Research suggests that services employees with greater sensitivity to other cultures are more attentive and have better interpersonal skills, job/social satisfaction - training to improve this should improve the consistency of service quality

client-based relationships

(characteristic of services) - __ are *interactions that result in satisfied customers who use a service repeatedly over time*. In fact, some service providers such as lawyers, accountants, and financial advisers, call their customers 'clients' and often develop and maintain close, long-term relationships with them. Success depends on satisfying and keeping customers over the long-term; generating repeat business is challenging; relationship marketing becomes critical. *Employee satisfaction is the single most important factor in providing high-service quality.*

customer contact

(characteristic of services) - __ refers to *the level of interaction between the service provider and the customer necessary to deliver the service*. High-contact services include health care, real estate, and legal and spa services. Service providers are critical to delivery; requires high levels of service employee training and motivation; changing a high-contact service into a low-contact service to achieve; lower costs is difficult to achieve without reducing customer satisfaction

perishability

(characteristic of services) - __ the unused service capacity of one time period cannot be stored for future use. For example, empty seats on an airline flight today cannot be stored and sold to passengers at a later date. Services cannot be stored; balancing supply and demand is very difficult; *unused capacity is lost forever; demand can be very time sensitive*

inseparability

(characteristic of services) - __ which refers to the fact that the production of a service *cannot be separated from its consumption by customers*. For example, air passenger service is produced and consumed simultaneously - that is, services are often produced, sold, and consumed at the same time. Service provider cannot mass produce services; customer must participate in production; other consumers affect service outcomes; services are difficult to distribute

combination compensation plan

(compensating sales force) - paying salespeople a fixed salary plus a commission based on sales volume. Some combination programs require that a salesperson exceed a certain sales level before earning a commission; other offers commissions for any level of sales. *Adv:* provides certain level of financial security and some incentive; can move sales force efforts in profitable direction. *Disadv:* selling expenses less predictable; may be difficult to administer

straight salary compensation plan

(compensating sales force) - paying salespeople a specific amount per time period, regardless of selling effort. This sum remains the same until they receive a pay increase or decrease. Although this method is easy to administer and affords salespeople financial security, it provides little incentive for them to boost selling efforts

straight commission compensation plan

(compensating sales force) - paying salespeople according to the amount of their sales in a given time period. A commission may be based on a single percentage of sales or on a sliding scale involving several sales levels and percentage rates. Although this method motivates sales personnel to escalate their selling efforts, it offers them little financial security, and it can be difficult for sales managers to maintain control over the sales force

refusal to deal

(legal issue in channel management) - For more than 75 years, the courts have held that producers have the right to choose channel members with which they will do business (and the right to reject others). *Within existing distribution channels, however, suppliers may not legally refuse to deal with wholesalers or dealers merely because these wholesalers or dealers resist policies that are anti-competitive or in restraint of trade*

exclusive dealing

(legal issue in channel management) - a situation in which a manufacturer *forbids an intermediary to carry products of competing manufacturers*. Manufacturers receive considerable market protection in an __ arrangements and may cut off shipments to intermediaries that violate the agreement. The legality of these arrangements is determined by applying *3 tests:* 1) if the deal blocks competitors from as much as 10% of the market, 2) if the sales revenue involved is sizable, and 3) if the manufacturer is much larger (more intimidating) than the dealer, the arrangement is considered anti-competitive.

tying arrangements

(legal issue in channel management) - an agreement in which a supplier furnishes a product to a channel member with the *stipulation that the channel member must purchase other products as well*. The courts accept __ when the supplier alone can provide products of a certain quality, when the intermediary is free to carry competing products as well, and when a company has just entered the market. Most other __ are considered illegal

restricted sales territories

(legal issue in channel management) - to *tighten control over distribution of its products, a manufacturer may try to prohibit intermediaries from selling its products outside designated sales territories*. Although courts have deemed __ a restraint of trade among intermediaries handling the same brands, they have also held that exclusive territories can actually promote competition among dealers handling different brands

Outdoor

(major media class) *Advantages:* allows for frequent repetition; low cost; message can be placed close to point of sale; geo selectivity; operable 24 hours a day; high creativity and effectiveness. *Disadvantages:* message must be short/simple; no demo selectivity; seldom attracts readers' full attention; criticized as traffic hazard and blight on countryside; wasted coverage; limited capabilities

magazines

(major media class) *Advantages:* demographic selectivity; good reproduction; long life; prestige; regional issue selectivity; read in leisurely manner. *Disadvantages:* high costs; 30-90 day average lead time; high level of competition; limited reach; communicates less frequently

Internet

(major media class) *Advantages:* immediate response; potential to reach a precisely targeted audience; ability to track customers and build databases; highly interactive medium. *Disadvantages:* cost of precise targeting are high; inappropriate ad placement; effects difficult to measure; concerns about security and privacy

direct mail

(major media class) *Advantages:* little wasted circulation; highly selective; circulation controlled by advertiser; few distractions; personal; stimulates action; use of novelty; relatively easy to measure performance; hidden from competitors. *Disadvantages:* very expensive; lacks editorial content to attract readers; often thrown away; criticized as invasion of privacy; consumers must choose to read the ad

radio

(major media class) *Advantages:* reaches 95% of consumers; highly mobile and flexible; very low relative costs; ad can be changed quickly; high level of selectivity; encourages use of imagination. *Disadvantages:* lacks visual imagery; short life; listeners' attention limited because of other activities; market fragmentation; difficult buying procedures; limited media and audience research

TV

(major media class) *Advantages:* reaches large audience; high frequency and visibility; dual impact of audio and video; high prestige; geo and demo selectivity; difficult to ignore. *Disadvantages:* very expensive; highly perishable message; size of audience not guaranteed; amount of prime time limited; lack of selectivity of target market

newspapers

(major media class) *Advantages:* reaches large audience; purchased to be read, geographic flexibility; short lead time; frequent distribution; favorable for cooperative ads; merchandising services. *Disadvantages:* not selective for target market; short life; limited reproduction capabilities; large advertising volume limits exposure

supply chain management

*a set of approaches used to integrate the functions of operations management, logistics management, supply management, and marketing channel management* so products are produced and distributed in the right quantities, to the right locations, and at the right time. It includes activities such as manufacturing, research, sales, advertising, shipping, and most of all, cooperating and understanding of tradeoffs throughout the whole chain to achieve optimal levels of efficiency and service

advertising platform

*basic issues or selling points to be included in an advertising campaign*. The __ should consist of issues important to customers, determined through surveys or through the opinions of personnel within the firm or advertising agency. Selling features must not only be important to customers, they should also be strongly competitive features of the advertised brand

vertical channel integration

*combining two or more stages of the marketing channel under one management*. This may occur when one members of a marketing channel purchases the operations of another member or simply performs the functions of another member, eliminating the need for that intermediary

pull policy

*promoting a product directly to consumers to develop strong consumer demand that pulls products through the marketing channel*. It does so primarily through advertising and sales promotion. Because consumers are persuaded to seek the products in retail stores, retailers in turn go to wholesalers or the producers to buy the products. This policy is intended to pull the goods down through the channel by creating demand at the consumer level, consumers are told that if the stores don't have it, ask them to go get it

push policy

*promoting a product only to the next institution down the marketing channel*. In a marketing channel with wholesalers and retailers, the producer promotes to the wholesaler because in this case, the wholesaler is the channel member just below the producer. Each channel member in turn promotes to the next channel member. A __ normally stresses personal selling, sometimes sales promotion and advertising are used in conjunction with personal selling to push the products down the channel

target audience

*the group of people at whom advertisements are aimed*. Identifying and analyzing the __ are critical processes; the information yielded helps determine other steps in developing the campaign. First step in the process of developing an advertising campaign

compensating salespeople

*to develop and maintain a highly productive sales force, a business must formulate and administer a compensation plan that attracts, motivates, and retains the most effective individuals*. In analyzing the required compensation level, sales management must ascertain a salespeople's value to the company on the basis of the tasks and responsibilities associated with the sales position. Sales compensation programs usually reimburse salespeople for their selling expenses, provide some fringe benefits, and deliver the necessary compensation level

marketing mixes for services

The characteristics of services require that marketers consider additional issues dealing with the four major mix variables:- *development of services*, *distribution of services*, *promotion of services*, and the *price of services*

advocacy advertising

When a company promotes its position on a public issue - for instance, a tax increase, abortion, gun control, or international trade coalitions - institutional advertising is referred to as __ (advertising that promotes a company's position on a public issue)

promotion mix

a combination of promotional methods used to promote a specific product - are advertising, personal selling, public relations, and sales promotion

publicity

a component of public relations, __ is nonpersonal communication in news story form about an organization or its products, transmitted through a mass medium at no charge. Tools include: *news releases (most common)*, *press conferences*, and *feature articles*. These tools offer several advantages, including credibility, news value, significant word-of-mouth communications, and perception of media endorsement

distribution

a component of the marketing mix, which focuses on the decisions and activities involved in making products available to customers when and where they want to purchase them

vertical marketing systems

a marketing channel managed by a single channel member to achieve efficient, low-cost distribution aimed at satisfying target market customers. __ brings most or all stages of the marketing channel under common control or ownership. Types of systems: 1) *Corporate VMS* (combines all the stages of the marketing channel, from products to consumers, under a single owner); 2) *Administered VMS* (channel members are independent, but a high level of interorganizational management is achieved through informal coordination); 3) *Contractual VMS* (most popular type, channel members are linked by legal agreements spelling out each member's rights and obligations, i.e. franchises like KFC)

cost comparison indicator

a means of comparing the costs of advertising vehicles in a specific medium in relation to the number of people reached.

source

a person, group, or organization with a meaning it tries to share with a receiver or an audience. A __ can be a salesperson wishing to communicate a sales message or an organization wanting to send a message to thousands of customers through an advertisement

media plan

a plan that specifies the media vehicles to be used and the schedule for running advertisements, goal is to reach the largest number of people in the advertising target per dollar spent. *The __ determines how many people in the target audience will be exposed to the message*. Requires complex analysis of the target audience, consider many factors: location and demographics of target audience, size and types of audience for each ad medium, and alternative media like the Internet.

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 asked if they recognize it

aided recall test

a posttest that asks respondents to identify recent ads and provides clues to jog their memories.

dual distribution

a producer may prefer __, the *use of two or more marketing channels to distribute the same products to the same target market*. Courts do not consider this practice illegal when it promotes competition, it becomes a threat when a manufacturer that uses company-owned outlets to dominate or drive out business independent retailers or distributors that handle its products; in such cases, __ violates the law. To avoid this interpretation, producers should use outlet prices that do not severely undercut independent retailers' prices

delivering exceptional service quality

a service company must consider the four factors that affect service quality: 1) *analysis of customer expectations*, 2) *service quality specifications*, 3) *employee performance*, and 4) *management of service expectations*

communication

a sharing of meaning through the transmission of information. Implicit in this definition is the notion of transmission of information because sharing necessitates transmission

viral marketing

a strategy to get consumers to share a marketer's message, often through email or online video, in a way that spreads dramatically and quickly

institutional advertising

advertising that promotes organizational images, ideas, and political issues. __ may deal with broad image issues, such as organizational strength or the friendliness of employees.

product advertising

advertising that promotes the uses, features, and benefits of products. There are two types of __: *pioneer* (advertising trying to stimulate demand for a product category rather than a specific brand by informing potential buyers about the product) and *competitive* (advertising trying to stimulate demand for a specific brand by promoting its features, uses, and advantages relative to competing brands)

reminder advertising

advertising used to remind consumers about an established brand's uses, characteristics, and benefits. *Reinforcement advertising* assures current users they have made the right brand choice and tells them how to get the most satisfaction from that brand

channel conflict

although all channel members work toward the same general goal - distributing products profitably and efficiently - *members sometimes may disagree about the best methods for attaining this goal*. However, if self-interest creates misunderstanding about role expectations, the end result is frustration and conflict for the whole channel. Resolved through two conditions: *1) specifying channel member roles*; and *2) institute certain measures of channel coordination*

buzz marketing

an attempt to incite publicity and public excitement surrounding a product through a creative event

supply chain

an important function of distribution is the joint effort of all involved organizations to be part of creating an effective __, *which refers to all the activities associated with the flow and transformation of products from raw materials through to then end customer*. This results in a total distribution system that involves firms that are both"upstream" in the supply chain (suppliers - make the product) and "downstream" (wholesalers, retailers - deliverers of product) to serve customers and generate competitive advantage

arbitrary approach

budgeting for an advertising campaign as specified by a high level executive in the firm. *The __ often leads to underspending or overspending*

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*. The costs of the tasks are calculated and added to arrive at the total appropriation, this approach has one main problem: marketers sometimes have trouble accurately estimating the level of effort needed to attain certain objectives

percent-of-sales approach

budgeting for an advertising campaign by multiplying the firm's past and expected sales by a standard percentage. Major flaw: it is *based on the incorrect assumption that sales create advertising rather than the reverse*, a marketer using this approach during declining sales will reduce the amount of spending on advertising but such a reduction may further diminish sales. Though illogical, this technique has been widely favored because it is easy to use

significance of marketing channels

channel decisions are critical because they *determine a product's market presence and buyers' accessibility* to the product. Marketing channels serve many functions: 1) *create utility* (time, place, possession, and form), and 2) *facilitate exchange efficiencies* (marketing intermediaries can reduce the costs of exchanges by performing certain services or functions efficiently)

horizontal channel integration

combining organizations at the same level of operation under one management. An organization may integrate horizontally by merging with other organizations at the same level in the marketing channel. Dry-cleaning firm may buy and combine several other dry-cleaning establishments. Could generate enough revenue to enable vertical integration. Although it permits efficiencies and economies of scale, could also result in *decreased flexibility*, *difficulties in coordination*, and the *need for additional marketing research/planning*.

promotion

communication to build and maintain relationships by informing and persuading one or more audiences. Toward this end, many organizations spend considerable resources on __ to build and enhance relationships with current and potential customers and other stakeholders. Objectives of __ include: 1) *create awareness*, 2) *stimulate demand*, 3) *encourage product trial*, 4) *identify prospects*, 5) *retain loyal customers*, 6) *facilitate reseller support*, 7) *combat competitive promotional efforts*, and 8) *reduce sales fluctuations*

decoding process

converting signs or symbols into concepts and ideas. Seldom does a receiver decode exactly the same meaning the source coded

integrated marketing communications

coordination of promotion and other marketing efforts for maximum informational and persuasive impact. Coordinating multiple marketing tools to produce this synergistic effect requires a marketer to employ a broad perspective - a major goal of __ is to send a consistent message to customers. *Coordinating marketing efforts for consistent message*

competition-matching approach

determining an advertising budget by trying to match competitors' advertising outlays. Marketers following this approach try to match their major competitors' appropriations in absolute dollars or to allocate the same percentage of sales for advertising that their competitors do. *Marketers should be aware that competitors probably have different objectives and resources available*

types of marketing channels

different distribution paths are developed for different marketing channels - 1) *channels for consumer products*, differing based on if they go through retailers, wholesalers, and agents/brokers. And 2) *channels for business products*, differing based on if they through industrial distributors or agents. Contrary to popular opinion, a long channel may be the most efficient distribution channel for some consumer goods - firms that specialize in certain elements of producing a product or moving it through the channel are more effective and efficient at performing specialized tasks than the manufacturer

advertising

element of the promotion mix - __ is a *paid nonpersonal communication about an organization and its products transmitted to a target audience through mass media*. It offers several benefits, it is extremely cost efficient when it reaches a vast number of people at a low cost per person. Advertising repetition has been found to be especially effective for brand name extensions beyond the original product category; advertising a product a certain way can add value, and the visibility an organization gains can enhance its image. Disadv: high dollar outlay; slow feedback; difficult to measure effects; less persuasive; limited time exposure

public relations

element of the promotion mix - __ is a broad set of communication efforts used to create and maintain favorable relationships between an organization and its stakeholders. Maintaining a positive relationship with one or more stakeholders can affect a firm's current sales and profits, as well as its long-term survival. __ uses variety of tools, including annual reports, brochures, event sponsorship, and sponsorship of socially responsible programs aimed at protecting the environment or helping the disadvantaged

personal selling

element of the promotion mix - __ is a paid personal communication that seeks to inform customers and persuade them to purchase products in an exchange situation. *Lets marketers zero in on the most promising sales prospects, and is the most precise form of promotion.* It involves more specific communication directed at one or several individuals; it provides more immediate feedback, and gives the freedom to allow marketers to adjust their messages to improve communication. Disadv: most expensive promotion-mix element, labor intensive, and time consuming

sales promotion

element of the promotion mix - __ is an activity or material that acts as a direct inducement, offering added value or incentive for the product, to resellers, salespeople, or consumers. Examples include free samples, games, rebates, sweepstakes, contests, premiums, and coupons. *Marketers spend more on sales promotion than on advertising, and it appears to be a faster-growing area than advertising*

pretest

evaluation of advertisements performed before a campaign begins. To __ advertisements, marketers sometimes use a *consumer jury*, a panel of a product's existing or potential buyers who pretest ads. Evaluation of advertising effectiveness after the campaign is called a *posttest*

strategic channel alliance

exists when the *products of one organization are distributed through the marketing channels of another*. The products of the two firms are often similar with respect to target markets or uses, but they are not direct competitors

evaluating PR effectiveness

good public relations has potential benefits, so it is important for firms to monitor their campaigns. *Environmental Monitoring* identifies changes in public opinion; *PR Audit* assesses an organization's public image; *Communications Audit* may include a content analysis of messages, a readability study, or a readership survey; *Social Audit* measures the extent to which stakeholders view an organization as responsible

supply management

in its broadest form refers to the processes that enable the *progress of value from raw material to final customer *and back to redesign and final disposition (e.g. purchasing, procurement, sourcing)

logistics management

involves *planning, implementing, and controlling* the efficient and effective flow and storage of products and information from the point of origin to consumption to meet customers' needs and wants

marketing channel

is a *group of individuals and organizations that direct the flow of products from producers to customers* within the supply chain. The major role of __ - in concert with operations management, logistics management, and supply management - is to make products available at the right time at the right place in the right quantities. Providing customer satisfaction should be the driving force behind marketing channel decisions, buyers' needs and behavior are therefore important concerns to channel members

industrial distributor

is an independent business that takes title to products and carries inventories. __ usually *sell standardized items* such as maintenance supplies, production tools, and small operating equipment. Overall, these distributors can be most effectively used when a product has broad market appeal, is easily stocked and serviced, is sold in small quantities, and is needed on demand to avoid high losses. *Adv:* perform needed selling activities in local markets at a relatively low cost to a manufacturer, close relationships with customers. *Disadv:* difficult to control due to independence, less likely to handle slow selling items, can lack technical knowledge

operations management

is the *total set of managerial activities used by an organization to transform resource inputs into products*. Coordination of operations and partnerships to meet customers' product needs.

channel cooperation

is vital if each member is to gain something from other members. Cooperation enables retailers, wholesalers, suppliers, and logistics providers to *speed up inventory replenishment*, *improve customer service*, and *cut the costs of bringing products to the consumer*

dealing with unfavorable PR

many organizations will have to deal with unanticipated negative public relations. One negative incident can demolish a firm's positive image - *1) take preventative measures* to reduce misconduct; *2) have a plan* in place to deal with negative PR; *3) be forthright* with the problem; and *4) take prompt action*

trade sales promotion methods

methods intended to persuade wholesalers and retailers to carry a producer's products and market them aggressively. Include: trading allowances; cooperative advertising and dealer listing; free merchandise and gifts; premium money; sales contests

marketing intermediaries

most channels, however, have one or more __ that *link producers to other intermediaries or to ultimate consumers through contractual arrangements* or through the purchase and reselling of products. Wholesalers and retailers are examples of intermediaries. *They provide* marketing info; marketing management; facilitate exchanges; set promotional objectives; establish price policies; and manage physical distribution

word-of-mouth communication

personal informal exchanges of communication that customers share with one another about products, brands, and companies. Research has identified a link between __ and new-customer acquisition when there is customer involvement and satisfaction.

consumer contests

sales promotion methods in which individuals compete for prizes based on their analytical or creative skills. *Consumer games* are sales promotion method in which individuals compete for prizes based primarily on chance. *Consumer sweepstakes* are a sales promotion in which entrants submit their names for inclusion in a drawing for prizes

consumer sales promotion methods

sales promotion techniques that encourage consumers to patronize specific stores or try particular products. __ initiated by retailers often aim to attract customers to specific locations, whereas those used by manufacturers generally introduce new products or promote established brands.

selecting marketing channels

selecting appropriate marketing channels is important, although the process varies across organizations channel decisions usually are significantly affected by one or more of the following factors: 1) customer *characteristics*, 2) product *attributes*, 3) type of *organization*, 4) *competition*, 5) marketing *environmental forces*, 6) and characteristics of *intermediaries*

channel captain

some marketing channels are organized and controlled by a single leader, or __ - they may be a producer, wholesaler, or retailer. The captains may establish channel policies and coordinate development of the marketing mix

advertising appropriation

the advertising budget for a specific time period. Geographic size of the market and the distribution of buyers within the market have a great bearing on this decision. It is difficult to determine how much to spend on advertising for a specific period because the potential effects on advertising are so difficult to measure precisely

relationship selling

the building of mutually beneficial long-term associations with a customer through regular communications over prolonged periods of time

advertising campaign

the creation and execution of a series of advertisements to communicate with a particular target audience. The major steps in creating an __ are: 1) identifying and analyzing the *target audience*, 2) defining the advertising *objectives*, 3) creating and *advertising platform*, 4) determining the advertising *appropriation*, 5) developing a *media plan*, 6) creating the *advertisement message*, 7) *executing the campaign*, and 8) *evaluating* advertising effectiveness

receiver

the individual, group, or organization that decodes a coded message, and an 'audience' is two or more __.

channel capacity

the limit on the volume of information a communication channel can handle effectively. *Capacity is determined by the least efficient component of the communication process*

intangibility

the major characteristic that distinguishes a service from a good is __ - *means a service is not physical and therefore cannot be perceived by the senses*. There is a direct relationship between the level of intangibility and consumers' use of brands as a cue to the nature and quality of the service. Difficult for customers to evaluate, they never take physical possession of service; difficult to advertise and display; and set/justify prices

communication channel

the medium of transmission that carries the coded message from the source to the receiver

feedback

the receiver's response to a decoded message. The source usually expects and normally receives __, although perhaps not immediately; during __ the receiver or audience is the source of a message directed toward the original source, which then becomes the receiver.

elements of the personal selling process

the specific activities involved in the personal selling process vary among salespeople, selling situations, and cultures. Seven general steps: *1) Prospecting* (developing a list of potential customers), *2) Preapproach* (obtaining relevant information), *3) Approach* (the manner in which a salesperson contacts a potential customer), *4) Making the presentation* (sell the product, adapt to the situation), *5) Overcoming objections* (anticipate and refute them), *6) Closing the sale* (when the salesperson asks the prospect to buy the product), *7) Following up* (determine customers' future product needs)

product placement

the strategic location of products or product promotions within entertainment media content to reach the product's target market. __ has become more important due to the increasing fragmentation of television viewers who have ever-expanding viewing options and technology that can screen advertisements

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

channel power

to attain desired objectives, the channel captain must possess __, *the ability to influence another channel member's goal achievement*. The member that becomes the channel captain will accept the responsibilities and exercise the power associated with this role. When a manufacturer's large-scale production efficiency demands that it increase sales volume, the manufacturer may exercise power by giving channel members financing, business advice, ordering assistance, advertising services, sales and service training, and support materials.

selective demand

to build __, demand for a specific brand, a marketer employs promotional efforts that point out the strengths and benefits of a specific brand. Building this demand also requires singling out attributes important to potential buyers, it can be stimulated by differentiating the product from competing brands in the minds of potential buyers, or by increasing the number of product uses and promoting them

comparative advertising

to make direct product comparisons, marketers use a form of competitive advertising called __, which compares the sponsored brand with one or more identified competing brands on the basis of one or more product characteristics. Often the brands that are promoted through __ have low market shares and are compared with competitors that have the highest market shares in the product category. *Competitive advertising stimulates selective demand*

coding process

to transmit meaning, a source must convert the meaning into a series of signs or symbols. When coding meaning into a message, a source must consider certain characteristics of the receiver or audience - must share symbols or signs that are familiar

intensive distribution

uses all available outlets for distributing a product. __ is appropriate for most *convenience products* such as bread, chewing gum, soft drinks, and newspapers. Convenience products have a high replacement rate, require almost no service, and are often bought based on price cues, to meet these demands __ is necessary, and multiple channels may be used to sell through all possible outlets. *All about product availability demanded*

exclusive distribution

uses only *one outlet in a relatively large geographic area*. __ is suitable for products purchased infrequently, consumed over a long period of time, or requiring service or information to fit them to buyers' needs, or expensive high-quality products. *Specialty products like luxury vehicles, high expectations from dealers, large geographic area*

selective distribution

uses only some available outlets in an area to distribute a product. __ is appropriate for *shopping products*; durable goods such as TV, stereos, and home computers usually fall into this category. These products are more expensive than convenience goods, and consumers are willing to spend more time visiting several retail outlets to compare prices, designs, styles, and other features. *More expensive items with the expectation of great customer service, products that require controlled sales and special services*

regional issues

versions of a magazine that differ across geographic regions. Geographic selectivity lets a firm use the same message in different regions at different times

primary demand

when an organization is the first to introduce an innovative product, it tries to stimulate __ - demand for product category rather that for a specific brand - through *pioneer promotion* - which informs potential consumers about the product. It's used in the introductory stage of the product life cycle, meaning there are no competing brands and it emphasizes no brand names or comparison of brands. Pioneer promotes primary demand

coupons

written price reductions used to encourage consumers to buy a specific product - the most widely used consumer sales promotion technique. __ are effective for brand awareness; they reward present customers, win back former customers, and encourage quantity purchases; traceable to target market. *Disadv:* fraud; expensive for manufacturers; losing value; brand loyalty diminished