Principles of Marketing Ch 15 and 19

What two ways do YMS accomplish filling unused capacity?

-discounting early purchases -limiting early sales at discounted prices and overbooking capacity

The four ways to set the right price on a product

-establish pricing goals -estimate demand, costs, and profits -choose a price strategy -fine-tune with pricing tactics

What happens in the price decline stage?

-may see further price decreases until only one firm is left in the market

Zero percent financing

-offers no interest charge to increase sales -it does cost the manufacturers

What is price?

-price is that which is given up in exchange to acquire a good or service--> typically money exchanged -may include other costs such as time lost while waiting to acquire the good or service -can relate to anything with perceived value, not just money

The three basic approaches that companies can choose from if they are planning for creating a price strategy

-price skimming -penetration pricing -status quo pricing

What are the three categories of pricing objectives?

-profit-oriented -sales-oriented -status-quo

The 8 options that can be used as a way to lower a base price

-quantity discounts -cash discounts -functional discounts -seasonal discounts -promotional allowances -rebates -zero percent financing -value based pricing

The other 11 different types of pricing tactics

-singe-price tactic -flexible pricing -trade ins -professional services pricing -price lining -leader pricing -bait pricing -odd-even pricing -price bundling -two-part pricing -pay what you want pricing

What three things do pricing objectives have to be?

-specific -attainable, and measurable to survive in today's competitive market

The 7 other determinants of price

-stages in the product life cycle -impact of the internet and extranets -competition, price matching, and customer loyalty -promotion strategy -relationship of price to quality -distribution strategy -demands of large customers

Why are quantity discounts used?

-to encourage customers to do what they would not ordinarily do, such as pay cash, take delivery out of season, or performing certain functions within a distribution channel

Yield Management Systems (YMS)

-uses complex mathematical software to profitably fill unused capacity

The total variable costs of Tulips Nation, a clothing manufacturer, increase by fifty cents every time a new unit is produced. The total fixed costs remain constant at $2,000 regardless of the level of output. It can sell each unit at $1 without having to lower its price. Determine the break-even quantity for Tulips Nation.

4,000 units

Advertising campaigns follow the _____.

AIDA model

The _____ is a model that outlines the process for achieving promotional goals in terms of stages of consumer involvement with a promotional message.​

AIDA model

Which of the following is a difference between an attribute and a benefit of a product?

An attribute is simply a feature of a product, while a benefit is what consumers receive by using a product.

Which of the following is a similarity between trade sales promotion and consumer sales promotion?

Both focus on providing incentives to consumers or wholesalers to make an immediate purchase.

Which of the following is an example of unmeasured media ad spending?

Catalogs

_____ is the process by which meanings are exchanged or shared through a common set of symbols.​

Communication

Which of the following is true of competition and the product life cycle?

Competition may strongly affect pricing decisions in the product life cycle.

The researchers at Beans Inc., a coffee manufacturing company, developed a new variety of high-quality ground coffee. The new variety was priced at a comparatively lower price than those available in the market. Therefore, the advertisements for the product stated, "The highest quality coffee does not have to be expensive." This is an example of communicating a product's _____.​

Competitive Advantage

_____ is a form of advertising designed to influence demand for a specific brand.

Competitive advertising

Which of the following is a characteristic of the elements of a promotional mix?​

Data influences how marketers distribute funding among the various elements of the promotional mix

Which of the following is a reason for a company's management to set prices high during the introductory stage of a product's life cycle?

Development costs could be recovered quickly if a product's price is set high at its introductory stage.

Which of the following statements is true of executional styles?

Executional styles often dictate what type of media is to be employed to convey the message.

True of False? Social media rely on the idea of repetition of the brand message.

False

True or False? A company that offers the same services as its competition has a competitive advantage.

False

True or False? A product's benefit is simply a feature of the product such as its easy-open package, special formulation, or new lower price.

False

True or False? A trade allowance is a price reduction offered by retailers to customers who are buying homogeneous shopping goods.

False

True or False? Advertising increases as a product enters the decline stage of its life cycle.

False

True or False? Evaluating an advertising campaign is the simplest part of the advertising process because the factors that determine the effectiveness of an ad are limited and clear.

False

True or False? Experiential marketing involves minimal engagement with a brand's consumers.

False

True or False? In a free-press environment, publicity is easily controlled in a crisis.

False

True or False? In the context of campaign evaluation, testing ad effectiveness can be done only after the advertising campaign is over.

False

True or False? Personal selling is not required when buyers are well informed and geographically dispersed.

False

True or False? Personal selling, unlike other promotional mix elements, is independent of the Internet.

False

True or False? Persuasive promotion is used to keep the product and brand name in the public's mind.

False

True or False? Print advertising does not involve using the Internet.

False

True or False? Serious or emotional advertisements are largely used to change people's deeply rooted values and attitudes.

False

True or False? Social media are a more immediate form of two-way communication than personal selling.

False

True or False? The Federal Trade Commission does not allow the identification of competing brands in comparative advertising.

False

True or False? The selection of media is not dependent on promotional objectives, the appeal, or executional style of advertising.

False

True or False? ​Consumers making routine buying decisions are more extensively involved in the decision-making process than consumers making complex buying decisions.

False

_____ is the number of times an individual is exposed to a given message during a specific period.

Frequency

Which of the following statements is true of sales promotions?​

It complements advertising by yielding faster sales responses.

Which of the following is an advantage of using cost per contact to determine the media mix for a product?

It enables an advertiser to compare the relative expenses of specific media vehicles.

Identify a true statement about an advertising campaign.

It extends for a defined period of time.

Which of the following is true of price equilibrium?

It maintains a condition where there is no inclination for prices to rise or fall.

Which of the following statements is true of pioneering advertising?

It offers consumers in-depth information about the benefits of the product class.

Which of the following is a limiting factor of status quo pricing?

It often leads to suboptimal pricing.

Which of the following statements is true of cooperative advertising?

It resolves the impracticality of listing all the dealers of the brand in national advertising.

Threads Inc., an apparel manufacturing company, employs personal selling to market goods. Its employees handcraft products that are then marketed by a professional team. In this case, which of the following strategies can be adopted by Threads Inc.?​

Making planned presentations to prospective buyers

Which of the following is the most effective pricing strategy for attracting hedonistic consumers?

Marketing products at high prices to emphasize quality

Bag TV, a commercial television broadcast network, uses billboards, television, magazines, and newspaper advertising to create awareness about upcoming shows and to inform viewers about the new episodes of its existing shows. Bag TV uses _____ to promote its television programs.​

Mass Communication

Which of the following is a reason for the increasing popularity of the integrated marketing communications (IMC) concept?​

More selectively segmented markets have replaced the traditional broad market groups

Which of the following strategies can be used by a firm that uses a pull strategy?

Offering heavy sampling and introductory consumer advertising

_____ is based on the traditional advertising model, whereby a brand offers money for media space.​

Paid media

Dernz Inc., a food manufacturing company, markets tomato ketchup globally. As its consumers are well aware of the uses of ketchup, the company does not have to generate product awareness. The company, however, wishes to focus on convincing consumers to buy Dernz's ketchup instead of other brands' ketchup. In this scenario, Dernz Inc. must employ _____.​

Persuasive promotion

_____ is designed to stimulate a purchase or an action.​

Persuasive promotion

What does price mean to the consumer?

Price is the cost of something

Which of the following statements is true of buying decisions?​

Print advertising may be used for high-involvement purchase decisions.

_____ is a public relations strategy that involves getting a product, service, or company name to appear in a movie, television show, radio program, magazine, newspaper, video game, video or audio clip, book, or commercial for another product; on the Internet; or at special events.​

Product placement

Advertisements of Brita LED Lightings are in the form of comparative advertising to emphasize the benefits of using LEDs over CFLs. The ads emphasize that Brita's LEDs cost less than CFLs or other brands' LEDs, last longer, consume lesser energy, and need to be replaced fewer times than CFLs. In this case, which of the following advertising appeals is used in these ads?

Profit

_____ refers to communication by marketers that informs, persuades, and reminds potential buyers of a product in order to influence an opinion or elicit a response.​

Promotion

The managers at Pork Farm Inc., a meat packing company, want to create more consumer demand for the company's products that are being overshadowed by its competitors. They have a meeting to decide the effective communication strategies that can be used to increase the popularity of Pork Farm Inc.'s products among customers by highlighting their company's products. In this scenario, the managers at Pork Farm Inc. are developing a _____.​

Promotional Strategy

_____ is the element in the promotional mix that evaluates people's attitudes, identifies issues that may elicit their concern, and executes programs to gain their understanding and acceptance.​

Public relations

_____ consists of all marketing activities that stimulate consumer purchasing and dealer effectiveness.​

Sales promotion

_____ is a promotional element with a very low cost per contact.​

Social media

How does using technology to collect detailed data about customers' buying habits, preferences, and even spending limit benefit sellers?

They can tailor their products and prices.

True or False? Corporations often use advocacy advertising to express their views on controversial issues.

True

True or False? Earned media is a category of promotional tactic based on a public relations or publicity model that gets customers talking about products or services.

True

True or False? Intermediaries receive push money as a bonus for pushing the manufacturer's brand through the distribution channel.

True

True or False? Newspapers and magazines have a high noise level.

True

True or False? Noise refers to anything that interferes with, distorts, or slows down the transmission of information.

True

True or False? Owned media is often used as another term for content marketing.

True

True or False? Print advertising can be used to sell goods and services to potential customers who are hard to locate.

True

True or False? Publicity refers to the public information about a company, product, service, or issue appearing in the mass media as a news item.

True

True or False? Sales promotion's greatest strength is in creating strong desire and purchase intent.

True

True or False? Unlike radio, a magazine has a relatively long life span, which is further increased by a high pass-along rate.

True

True or False? ​Advertising can affect the way consumers rank a brand's attributes.

True

Duski, a very expensive brand of clothing and accessories, promotes its products by using advertisements that feature beautiful women clothed in its brands. Given this information, which of the following advertising appeals is used by Duski?

Vanity and egotism

Which of the following is a difference between a push and a pull strategy?​

Wholesalers are targeted in a push strategy, while end consumers are targeted in a pull strategy.

_____ is a technique for adjusting prices that uses complex mathematical software to profitably fill unused capacity by discounting early purchases, limiting early sales at these discounted prices, and overbooking capacity.

Yield management system

Price Strategy

a basic, long-term pricing framework that establishes the initial price for a product and the intended direction for price movements over the product life cycle

Rebate

a cash refund given for the purchase of a product during a specific period

Earned Media

a category of promotional tactic based on a public relations or publicity model that gets customers talking about products or services

Paid Media

a category of promotional tactic based on the traditional advertising model, whereby a brand pays for media space

New brands with a small market share tend to spend proportionately more for advertising and sales promotion than those with a large market share because:

a certain minimum level of exposure is needed to measurably affect purchase habits.

Market Share

a company's product sales as a percentage of total sales for that industry

Fixed Cost

a cost that does not change as output is increased or decreased

Variable Cost

a cost that varies with changes in the level output

Noncumulative Quantity Discount

a deduction from list price that applies to a single order rather than to the total volume of orders placed during a certain period

Cumulative Quantity Discount

a deduction from list price that applies to the buyers total purchases made during a specific period

Functional discount (trade discount)

a discount to wholesalers and retailers for performing channel functions

Pull Strategy

a marketing strategy that stimulates consumer demand to obtain product distribution

Push Strategy

a marketing strategy that uses aggressive personal selling and trade advertising to convince a wholesaler or a retailer to carry and sell particular merchandise

Channel

a medium of communication for transmitting a message

Break-Even Analysis

a method of determining what sales volume must be reached before total revenue equals total costs

AIDA Concept

a model that outlines the process for achieving promotional goals in terms of stages of consumer involvement with the message

Zone Pricing

a modification of uniform delivered pricing that divides the US into segments or zones and charges a flat freight rate to all customers in a given zone

Owned Media

a new category of promotional tactic based on brands becoming publishers of their own content in order to maximize the brands' value to customers

Promotional Strategy

a plan for the optimal use of the elements of promotion: advertising, public relations, personal selling, sales promotion, and social media

Seasonal Discount

a price reduction for buying merchandise out of season

Cash Discount

a price reduction offered to a consumer, an industrial user, or a marketing intermediary in return for prompt payments of a bill

Quantity Discount

a price reduction offered to buyers buying in multiple units or above a specified dollar amount

Leader Pricing (Loss-Leader Pricing)

a price tactic in which a product is sold near or even below cost in the hope that shoppers will buy other items once they are in the store

Flexible Pricing (Variable Pricing)

a price tactic in which different customers pay different prices for essentially the same merchandise bought in equal quantities

Freight Absorption Pricing

a price tactic in which the seller pays all or part of the actual freight charges and does not pass them on to the buyer

Uniform Delivered Pricing

a price tactic in which the seller pays the actual freight charges and bills every purchaser an identical, flat freight charge

Basing-Point Pricing

a price tactic that charges freight from a given point, regardless of the city from which the goods are shipped

Single-Price Tactic

a price tactic that offers all goods and services at the same price

FOB Origin Pricing

a price tactic that requires the buyer to absorb the freight costs from the shipping point

Bait Pricing

a price tactic that tries to get consumers into a store through false or misleading price advertising ant then uses high-pressure selling to persuade consumers to buy more expensive merchandise

odd-even pricing (psychological pricing)

a price tactic that uses odd-numbered prices to connote bargains and even-numbered prices to imply quality

Price Skimming

a pricing policy whereby a firm charges a high introductory price, often coupled with heavy promotion

Penetration Pricing

a pricing policy whereby a firm charges a relatively low price for a product when it is first rolled out as a way to reach the mass market

Extranet

a private electronic network that links a company with its suppliers and customers

Personal Selling

a purchase situation involving a personal, paid for communication between two people in an attempt to influence each other

Inelastic Demand

a sitation in which an increase or a decrease in price will not significantly affect demand for the product

Elastic Demand

a situation in which consumer demand is sensitive to change in price

Yield Management Systems

a technique for adjusting prices that uses complex mathematical software to profitably fill unused capacity by discounting early purchases, limiting early sales at these discounted pries, and overbooking capacity

To increase its revenue, Sky Airlines, an airline company, decides to promote well-known companies in its in-flight magazine. These companies would pay a fixed price to Sky Airlines to print their promotional messages in the in-flight magazine. In the context of the promotional mix, the in-flight magazine is being used for _____.​

advertising

Price Fixing

an agreement between two or more firms on the price they will change for a product

Consumer Penalty

an extra fee paid by the consumer for violating the terms of the purchase agreement

Noise

anything that interferes with, distorts, or slows down the transmission of information

In the context of the effects of advertisements, humorous advertisements:

are effective at shaping attitudes when consumers already have a positive image of an advertised brand.

What is price paid based on?

based on the satisfaction consumers expect to receive from a product and not necessarily the satisfaction they actually received

Price bundling

combining two or more products in a single package

Promotion

communication by marketers that informs, persuades, and reminds potential buyers of a product in order to influence an opinion of elicit a response

Elasticity of Demand

consumers' responsiveness or sensitivity to change in price

Interpersonal Communication

direct, face-to-face communication between two or more people

In the maturity stage for price, what component becomes a significant cost factor?

distribution channels, because of the need to offer wide product lines

What are the three reasons why price stabilizes in the growth stage?

due to: -increased product supply from competitors -increased product appeal to a broader market -decreased costs from economies of scale

Doodle Inc., a renowned interior design services company, tries to increase its customer base through Web presence. It regularly posts its interior decorations on its Web site, and its followers can review the designs, suggest changes, and recommend the company to their friends. This results in electronic word of mouth advertising. Doodle uses social media as a(n) _____.​

earned media

Trade ins

exchanging one item for a credit towards another, used often at car dealerships

Unlike traditional methods of personal selling, relationship selling:​

focuses on maintaining a loyal relationship between a salesperson and a customer.

What happens to the price in the maturity stage?

further decreases in price, as competition increases and high-cost firms are eliminated

Reach is related to a medium's ratings, generally referred to in the industry as:

gross ratings points.

Firms use competitive or brand advertising when a product enters the _____ of the product life cycle and other companies begin to enter the marketplace.

growth stage

How does dynamic pricing help brick-and-mortar retailers?

helps them compete more efficiently with online alternatives

Advertising

impersonal, one-way mass communication about a product or organization that is paid for by a marketer

Where does demand originate in the introductory stage for price?

in the core of the market and is relatively inelastic

Firms that have sales-oriented pricing objectives focus mainly on

increasing their market share

If the goal of the promotion plan is to improve the image of the company or the industry, _____ may be used.

institutional advertising

Decoding

interpretation of the language and symbols sent by the source through a channel

Pioneering advertising is heavily used during the _____ of the product life cycle.

introductory stage

A benefit of advertising is that:​

it has a very low cost per contact.

What does a reasonable price entail?

it means perceived reasonable value, value is based upon perceived satisfaction

Unfair Trade Practice Acts

laws that prohibit wholesalers and retailers from selling below cost

As receivers in the communication process, marketers:​

listen to the target market in order to develop appropriate messages.

What do seasonal discounts do?

lower prices for buying merchandise out of season

Roar Bros., a beverage manufacturing firm, has recently launched a new energy drink. To make consumers aware of the new drink and to stimulate their interest in it, the managers at Roar Bros. want to use owned media to promote their new product. In this case, the managers at Roar Bros. will most likely:​

make short commercials for the energy drink and upload it on YouTube

Sales Promotion

marketing activities - other than personal selling, advertising, and public relations - that stimulate consumer buying and dealer effectiveness

A proper promotional mix is one that:​

meets the needs of a target market

Return on Investment

net profit after taxes divided by total assets

When are cash discounts offered?

offered for prompt payment of a bill

Competitive Advantage

one or more unique aspects of an organization that cause target consumers to patronize that firm rather than competitors

Promotional allowances (trade allowances)?

payments to dealers for promoting the manufacturer's products

The information effect of price

people infer quality information based on price

What does price do?

price allocates resources in a free-market economy

What does price mean to the seller?

price is revenue

The sacrifice effect of price

price is that which is sacrificed to get a good or service

What occurs when there is only one firm left in the market during the price decline stage?

prices begin to stabilize and may even increase as the product moves into the specialty goods category

If an advertiser wants to enhance the sales of a specific good or service, _____ should be used.

product advertising

Pay what you want pricing

product price chosen by customers

The _____ is the combination of advertising, personal selling, sales promotion, social media, and public relations that is used to reach a target market and fulfill an organization's overall goals.​

promotional mix

Unlike magazine advertising, radio advertising:

provides maximum flexibility

Publicity

public information about a company, product, service, or issue appearing in the mass media as a news item

Wild Plus, a television channel dedicated to wildlife, wanted to promote its new wildlife adventure series. The series received wide coverage in newspapers and on television, which created awareness about Wild Plus and led to a large viewership. Wild Plus engaged in:​

public relations

King's Crown, a beverage company, launches a new energy drink. It sponsors a marathon in the city as part of its promotional strategy. Moreover, it issues a press release about the sponsorship and persuades media reporters of different newspapers to print it. King's Crown is generating _____.​

publicity

Profit

revenue minus expenses

As a product reaches the growth stage of its life cycle, _____.​

sales promotion can be reduced​

Magnira Corp., a manufacturer of hygiene and personal care products, launches a new toothpaste "Tidy" that is more effective in maintaining oral hygiene than other brands. The advertisements of Tidy provide highly valid research information. This is an example of _____.

scientific executional style

Advent Automobiles Inc. launches a new sport utility vehicle (SUV). It develops a marketing message and places advertisements in leading newspapers and on social media sites to inform consumers about the new SUV and its various features. In the context of the communication process, Advent Automobiles Inc. is the _____.​

sender

How are prices set in the introductory stage?

set high to recover development costs

Value-based Pricing

setting the price at a level that seems to the customer to be a good price compared to the prices of other options

The quantity of a product that will be offered to the market by a supplier at various prices for a specified period is termed

supply

The demand determinant of price

supply and demand changes with price --> economic factors

What is the basic assumption with value-based pricing

that the firm is customer driven, seeking to understand the attributes customers want in the goods and services they buy and the value of that bundle of attributes to customers

Price

that which is given up in an exchange to acquire a good or service

What is dynamic pricing?

the ability to change prices very quickly in real time

Dynamic pricing

the ability to change prices very quickly, often in real time

Integrated Marketing Communications

the careful coordination of all promotional messages for product or a service to ensure the consistency of messages at every contact point at which a company meets the consumer

Promotional Mix

the combination of promotional tools used to reach the target market and fulfill the organization's overall goals

Mass Communication

the communication of a concept or message to large audiences

Encoding

the conversation of a sender's ideas and thoughts into a message, usually in the form of words or signs

Markup Pricing

the cost of buying the product from the producer, plus amounts for profit and for expenses not otherwise accounted for

Base Pricing

the general price level at which the company expects to sell the good or service

An alternative to a commercial spot is _____, a thirty-minute or longer advertisement, which is relatively inexpensive to produce and air.

the infomercial

Public Relations

the marketing function that evaluates public attitudes, identifies areas within the organization the public may be interested in, and executes a program of action to earn public understanding and acceptance

Sender

the originator of the message in the communication process

Receiver

the person who decodes a message

Predatory Pricing

the practice of charging a very low price for a product with the intent of driving competitors out of business or out of market

Keystoning

the practice of marketing up prices by 100 percent or doubling the cost

Price Lining

the practice of offering a product line with several items at specific price points

Revenue

the price charged to customers multiplied by the number of units sold

Communication

the process by which we exchange or share meaning through a common set of symbols

Demand

the quantity of a product that will be sold in the market at various prices for a specified period

Supply

the quantity of product that will be offered to the market by a supplier at various prices for a specified period

Feedback

the receiver's response to a message

Why are more and more companies turning to dynamic pricing?

to help adjust prices

Two-part pricing

two separate charges to consume a single good

Professional services pricing

used by professionals with experience, training or certification

How are other pricing tactics used?

used to stimulate demand for specific products, increase store patronage, and offer a wider variety of merchandise at a specific price point

Who remains in the price maturity stage?

usually only the most efficient manufacturers remain

When are functional discounts (trade discounts) offered?

when channel intermediaries perform a service for the manufacturer

Barter

when goods or services are exchanged

When is dynamic pricing most useful?

when two product or service characteristics co-exist

_____ is the channel used to convey a message to a target market.

​A medium

_____ is the ability of an advertising medium to reach a precisely defined market.

​Audience selectivity

_____ seeks to convert an existing need into a want or to stimulate interest in a new product.​

​Informative promotion

Tread Inc. is the market leader for sports shoes in the subcontinent of Gavon. Though the brand has not introduced any new product lines over the past decade, its signature products enjoy a high demand and have always remained popular. According to the concept of advertising response function, which of the following should be Tread Inc.'s advertising strategy?

​It should spend proportionately less on advertising than on a newer line.

Fournotts Bros. is a firm that designs and manufactures women's apparel. It sells its merchandise to retailers to handle them. Given this information, which of the following statements is true of Fournotts Bros.?​

​Its retailers convince consumers to buy Fournotts Bros.'s products.

Which of the following is a difference between social media and personal selling?​

​Social media can disperse a message quickly to a wide audience, while personal selling is very slow in dispersing a message to a large audience.

Laelle Corp., a furniture manufacturing company, uses marketing efforts like paid television commercials and magazine inserts to publicize its products. These are examples of activities associated with:

​advertising.

At Rue's Hunting Emporium, a retail store, equipment required for hunting is sold. When a new or revised equipment is introduced, it advertises those products steadily throughout a planned period of time. This is an example of a _____.​

​continuous media schedule

Fournotts Corp., a sports shoe manufacturer, launched a new sports shoe. As a part of publicity, it invited its customers to try the shoes and get a feel of its features. This is an example of _____.​

​experiential marketing

A _____ is a media scheduling strategy in which ads are run heavily every other month or every two weeks to achieve a greater impact with an increased frequency and reach at those times.

​flighted media schedule

A difference between paid media and earned media is that unlike paid media, earned media:​

​is created when people talk and share content on social media.

A disadvantage of newspaper advertising is that:

​it may not be the best vehicle for marketers trying to reach a very narrow market.

A _____ requires a manufacturer to focus its promotional efforts on end consumers.​

​pull strategy

Kriyoto Inc. is a manufacturer of printers, scanners, and other office equipment. It announced a cash refund for corporate purchases in quantities more than ten. Rick purchased 20 color printers for his office from Kriyoto during this sale. To avail the cash refund, he had to mail in a proof of purchase, purpose of purchase, proof of his company's legality, and his cash register receipt. In this case, Rick has received a:

​rebate.

A difference between interpersonal communication and mass communication is that:​

​reception level is high in interpersonal communication, whereas it is low in mass communication.

The objective of public relations is:​

​to educate the public about a company's goals and objectives.

The basic goal of promotion during the introduction stage of the product life cycle is:​

​to inform the target audience that the product is available.

An objective of a seller engaging in personal selling is:​

​to persuade a buyer to accept a point of view.

Understanding the advertising response function helps marketers:

​use their advertising budgets wisely to suit the target market.