Marketing 301 Final (Ch 16, 17, 18 & 19)

a. True.

A cost comparison indicator (such as CPM) should not be used to compare the cost and impact of a television commercial with the cost and impact of a newspaper advertisement. a. True b. False

c. media plan.

A list of the exact magazines, newspapers, and television stations in which an advertisement will appear, along with the dates and times, is a(n) a. advertising message. b. advertising plan. c. media plan. d. advertising appropriation. e. media platform.

merchandise allowance

A manufacturer's agreement to pay resellers certain amounts of money for providing special promotional efforts, such as setting up and maintaining a display

free merchandise

A manufacturer's reward given to resellers that purchase a stated quantity of products

scan-back allowance

A manufacturer's reward to retailers based on the number of pieces scanned

feature article

A manuscript of up to 3,000 words prepared for a specific publication

price war

A price war involves two or more companies engaging in intense price competition, often in an effort to boost market share

consumer sweepstakes

A sales promotion in which entrants submit their names for inclusion in a drawing for prizes

institutional advertising

Advertising that promotes organizational images, ideas, and political issues

reminder advertising

Advertising used to remind consumers about an established brand's uses, characteristics, and benefits

sales promotion

An activity and/or material intended to induce resellers or salespeople to sell a product or consumers to buy it

cooperative advertising

An arrangement in which a manufacturer agrees to pay a certain amount of a retailer's media costs for advertising the manufacturer's products

objective-and-task approach

Budgeting for an advertising campaign by first determining its objectives and then calculating the cost of all the tasks needed to attain them

Integrated marketing communications

Coordination of promotion and other marketing efforts for maximum informational and persuasive impact on customers

fixed costs

Costs that do not vary with the quantity of output produced

competition-matching approach

Determining an advertising budget by trying to match competitors' advertising outlays

native advertising

Digital advertising that matches the appearance and purpose of the content in which it is embedded

C. Introduction.

During which stage of the product life cycle is pioneer advertising most appropriate? a. ​Recession b. ​Decline c. ​Introduction d. ​Maturity e. ​Growth

Premiums

Items offered free or at a minimal cost as a bonus for purchasing a product

a. True.

Lack of control over the content and timing of public relations is a limitation in using publicity-based public relations tools. a. True b. False

personal selling

Paid personal communication that attempts to inform customers and persuade them to buy products in an exchange situation

straight commission compensation plan

Paying salespeople according to the amount of their sales in a given time period

illustrations

Photos, drawings, graphs, charts, and tables used to spark audience interest in an advertisement

trade salespeople

Salespeople involved mainly in helping a producer's customers promote a product

point-of-purchase (POP) materials

Signs, window displays, display racks, and similar devices used to attract customers

missionary salespeople

Support salespeople, usually employed by a manufacturer, who assist the producer's customers in selling to their own customers

a. advertising objective.

Suppose State Farm Insurance stated, "We want our advertising to increase our customer base for home and automobile insurance 10 percent by the end of the fiscal year." This would be considered a(n) a. advertising objective. b. target audience goal. c. percent-of-sales approach. d. media plan goal. e. advertising platform.

a. advertising platform.

The basic issues or selling points that an advertiser wants to include in an advertising campaign is (are) the a. advertising platform. b. target audience objectives. c. advertising message. d. advertising objectives. e. media plan.

relationship selling

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

b. Reach.

The percentage of consumers in the target audience actually exposed to a particular advertisement in a stated period of time is the definition of​ a. ​exposure. b. ​reach. c. ​frequency. d. ​push. e. ​targeting.

e. people toward whom the advertisements are directed.

The target audience for an advertising campaign is the a. information base on which to develop the campaign. b. sales objective to be achieved by the campaign. c. geographic distribution of persons. d. overall goal of the advertising campaign. e. people toward whom the advertisements are directed.

d. pulsing, continuous, and flighting.

The three general types of media schedules are a. short, medium, and long-term. b. pulsing, beating, and continuous. c. light, heavy, and alternating. d. pulsing, continuous, and flighting. e. morning, afternoon, and evening.

deceptive pricing

The use of false or misleading statements or practices to persuade buyers that a product is a better deal than it really is

a. copy.

The verbal portion of an advertisement, including headlines, body, and signature, is called the a. copy. b. layout. c. script. d. artwork. e. storyboard.

d. Objective-and-task.

To determine how much money to spend on advertising, marketers for a new brand of caffeinated energy drink decided that they wanted the advertising to create awareness of the new flavor in 80% of the energy drink market within one month of introduction. The marketers then determined how much it would cost to reach this goal. This is an example of which one of the following approaches to determining advertising budgets? a. Past-year comparison b. Percent of sales c. Arbitrary allocation d. Objective-and-task e. Competition matching

a. competitive

When Volvo's advertising campaign mentions the Volvo CX60 has the highest safety rating of any European sedan, it is using _______ advertising. a. competitive b. reinforcement c. reminder d. institutional e. defensive

storyboard

a blueprint that combines copy and visual material to show the sequence of major scenes in a commercial

promotion mix

a combination of promotional methods used to promote a specific product

external reference price

a comparison price provided by others

allowance

a concession in price to achieve a desired goal

dealer loader

a gift, often part of a display, given to a retailer that purchases a specified quantity of merchandise

demand curve

a graph of the quantity of products expected to be sold at various prices if other factors remain constant

cost comparison indicator

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

price elasticity of demand

a measure of the sensitivity of demand to changes in price

press conference

a meeting used to announce major news events

publicity

a news story type of communication about an organization and/or its products transmitted through a mass medium at no charge

consumer jury

a panel of a product's existing or potential buyers who pretest ads

source

a person, group, or organization with a meaning it tries to share with a receiver or an audience

captioned photograph

a photograph with a brief description of its contents

media plan

a plan that specifies the media vehicles to be used and the schedule for running advertisements

unaided recall test

a posttest in which respondents are asked to identify advertisements they have seen recently but are not given any recall clues

recognition test

a posttest in which respondents are shown the actual ad and are asked if they recognize it

aided recall test

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

internal reference price

a price developed in the buyer's mind through experience with the product

FOB destination

a price indicating the producer is absorbing shipping costs

cash discount

a price reduction given to buyers for prompt payment or cash payment

seasonal discount

a price reduction given to buyers for purchasing goods or services out of season

trade (functional) discount

a reduction off the list price a producer gives to an intermediary for performing certain functions

sales contest

a sales promotion method used to motivate distributors, retailers, and sales personnel through recognition of outstanding achievements

news release

a short piece of copy publicizing an event or a product

viral marketing

a strategy to get consumers to share a marketer's message, often through e-mail or online videos, in a way that spreads dramatically and quickly

buy-back allowance

a sum of money given to a reseller for each unit bought after an initial promotion deal is over

buying allowance

a temporary price reduction to resellers for purchasing specified quantities of a product

freight absorption pricing

absorption of all or part of actual freight costs by the seller

dealer listings

advertisements that promote a product and identify the names of participating retailers that sell the product

reinforcement advertising

advertising that assures users they chose the right brand and tells them how to get the most satisfaction from it

advocacy advertising

advertising that promotes a company's position on a public issue

product advertising

advertising that promotes the uses, features, and benefits of products

pioneer advertising

advertising that tries to stimulate demand for a product category rather than a specific brand by informing potential buyers about the product

predatory pricing

also called undercutting, involves the intent to set a product's price so low that rival firms cannot compete and therefore withdraw from the marketplace

artwork

an advertisement's illustrations and layout

price fixing

an agreement among competing firms to raise, lower, or maintain prices for mutual benefit

buzz marketing

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

noise

anything that reduces a communication's clarity and accuracy

advertising platform

basic issues or selling points to be included in an advertising campaign

arbitrary approach

budgeting for an advertising campaign as specified by a high-level executive in the firm

percent-of-sales approach

budgeting for an advertising campaign by multiplying the firm's past and expected sales by a standard percentage

uniform geographic pricing

charging all customers the same price, regardless of geographic location

proxemic communication

communicating by varying the physical distance in face-to-face interactions

kinesic communication

communicating through the movement of head, eyes, arms, legs, or torso

tactile communication

communicating through touching

Public Relations

communication efforts used to create and maintain favorable relations between an organization and its stakeholders

promotion

communication to build and maintain relationships by informing and persuading one or more audiences

comparitive advertising

compares the sponsored brand with one or more identified brands on the basis of one or more product characteristics

value conscious

concerned about price and quality of a product

coding process

converting meaning into a series of signs or symbols

decoding process

converting signs or symbols into concepts and ideas

variable costs

costs that vary with the changes in the number of units produced or sold

quantity discounts

deductions from the list price for purchasing in large quantities

primary demand

demand for a product category rather than for a specific brand

selective demand

demand for a specific brand

prospecting

developing a database of potential customers

Recruiting

developing a list of qualified applicants for sales positions

prestige sensitive

drawn to products that signify prominence and status

nonprice competition

emphasizing factors other than price to distinguish a product from competing brands

price competition

emphasizing price as an issue and matching or beating competitors' prices

price discrimination

employing price differentials that injure competition by giving one or more buyers a competitive advantage

pretest

evaluation of advertisements performed before a campaign begin

posttest

evaluation of advertising effectiveness after the campaign

premium money (push money)

extra compensation to salespeople for pushing a line of goods

base-point pricing

geographic pricing that combines factory price and freight charges from the base point nearest the buyer

trade sales promotion methods

methods intended to persuade wholesalers and retailers to carry a producer's products and market them aggressively

noncumulative discounts

one-time price reductions based on the number of units purchased, the dollar value of the order, or the product mix purchased

advertising

paid nonpersonal communication about an organization and its products transmitted to a target audience through mass media

combination compensation plan

paying salespeople a fixed salary plus a commission based on sales volume

straight salary compensation plan

paying salespeople a specific amount per time period, regardless of selling effort

word-of-mouth communication

personal information exchanges of communication that customers share with one another about products, brands, and companies

transfer pricing

prices charged in sales between an organization's units

zone pricing

pricing based on transportation costs within major geographic zones

pull policy

promoting a product directly to consumers to develop strong consumer demand that pulls products through the marketing channel

push policy

promoting a product only to the next institution down the marketing channel

pioneer promotion

promotion that informs consumers about a new product

cents-off offers

promotions that allow buyers to pay less than the regular price to encourage purchase

cumulative discounts

quantity discounts aggregated over a stated time period

geographic pricing

reductions for transportation and other costs related to the physical distance between buyer and seller

demonstrations

sales promotion methods a manufacturer uses temporarily to encourage trial use and purchase of a product or to show how a product works

consumer contests

sales promotion methods in which individuals compete for prizes based on their analytical or creative skills

consumer games

sales promotion methods in which individuals compete for prizes based primarily on chance

rebates

sales promotion techniques in which a consumer receives a specified amount of money for making a single product purchase

consumer sales promotion methods

sales promotion techniques that encourage consumers to patronize specific stores or try particular products

money refunds

sales promotion techniques that offer consumers a specified amount of money when they mail in a proof of purchase, usually for multiple product purchases

support personnel

sales staff members who facilitate selling but usually are not involved solely with making sales

free samples

samples of a product given out to encourage trial and purchase

communication

sharing of meaning through the transmission of information

price-conscious

striving to pay low prices

technical salespeople

support salespeople who give technical assistance to a firm's current customers

advertising appropriation

the advertising budget for a specific time period

marginal revenue

the change in total revenue from an additional unit sold

advertising campaign

the creation and execution of a series of advertisements to communicate with a particular target audience

marginal cost

the extra cost incurred by producing one more unit of a product

average fixed cost

the fixed cost per unit produced

target audience

the group of people at whom advertisements are aimed

receiver

the individual, group, or organization that decodes a coded message

channel capacity

the limit on the volume of information a communications channel can handle effectively

approach

the manner in which a salesperson contacts a potential customer

communications channel

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

layout

the physical arrangement of an advertisement's illustration and copy

break-even point

the point at which the costs of producing a product equal the revenue made from selling the product

F. O. B. Factory

the price of merchandise at the factory before shipment

feedback

the receiver's response to a decoded message

closing

the stage in the personal selling process when the salesperson asks the prospect to buy the product

product placement

the strategic location of products or product promotions within entertainment media content to reach the product's target market

total cost

the sum of average fixed and average variable costs times the quantity produced

average total cost

the sum of the average fixed cost and the average variable cost

barter

the trading of products

team selling

the use of a team of experts from all functional areas of a firm, led by a salesperson, to conduct the personal selling process

price

the value paid for a product in marketing exchange

average variable cost

the variable cost per unit produced

copy

the verbal portion of advertisements

competitive advertising

tries to stimulate demand for a specific brand by promoting its features, uses, and advantages relative to competing brands

regional issues

versions of a magazine that differ across geographic regions

Coupons

written price reductions used to encourage consumers to buy a specific product