MKTG 3810 Final

Snowballing

The practice of a salesperson asking current customers or prospects for the names of other people who might be interested in the products in question.

Sales Promotion

The practice of offering extra incentives or inducements to persuade customers to make a purchase or to speed their decision processes.

Consumer Sales Promotion

The practice of retailers or producers adding incentives or inducements for consumers to buy products sooner rather than later.

Basic Media Planning Problem

The problem faced by media planners that asks them to maximize exposure to the target audience while minimizing waste coverage.

Sales Presentation

The basic sales message given to the prospect.

Abandonment Rate

The percentage of visitors who begin but do not complete a requested task.

Direct Response Advertising

A form of promotion in which a company eliminates the retailer by making customers an offer, providing supporting product information, and providing a method for customers to respond to the offer to make an exchange.

Boundary Spanning Job

A job whose activities are performed across the organizational boundaries that separate buyers from sellers.

Category Shelf Facings

A measurement of how well-exposed a brand is in retail stores.

Gross Rating Points

A measurement of schedule intensity that is the product of reach times frequency. Product of reach and average frquency

cost per thousand impressions (CPM)

A measurement of the costs of traditional advertising across different media.

Brand Development Index (BDI)

A metric that compares a brand's performance in a target group to the brand's performance among all target groups.

Relevant Outlet Rate

A metric that quantifies how available the brand is to customers who would potentially want it.

Qualified Prospect

A prospect that has been deemed to have a need for or possible interest in a particular product.

Google Analytics

A suite of tools powered by data from the Google search engine that provides real time and summary data for an array of web-based metrics.

Trade Promotion

A collection of incentives that professional salespeople use to induce prospects or customers to buy now or to buy more.

Canned sales Presentation

A completely scripted sales presentation.

Merchandise Allowances

A type of buying allowance in which free merchandise is given to the reseller. For example, a retailer may be given one free for every ten purchased. Merchandise allowances are offered for the same reasons as off-invoice discounts

Off-invoice Discounts

A type of buying allowance in which producers offer simple temporary price reductions to the reseller. Usually offered for a limited time period and often limited to certain specific items. Producers use them to encourage retailers to push certain merchandise, to encourage retailers to stock new merchandise, or to clear excess supply of some merchandise.

Sweepstakes

A type of consumer promotion that awards prizes to entrants by random drawing.

Contest

A type of consumer sales promotion that asks entrants to display some skill or ability in order win prizes.

Product Advertising

Advertising that encourages members of a target market to buy the advertiser's products or visit the advertiser's stores or websites.

Advocacy Advertising

Advertising that expresses a company's involvement with some social issue or charity.

Competitive Advertising

Advertising that focuses on selective demand, when several brands compete in a product market.

Corporate Image Advertising

Advertising that seeks to advance an overall positive identification for the company in a broad and nonspecific sense.

Institutional Advertising

Advertising that seeks to build the general reputation of the organization and create goodwill toward it and its brands.

Pioneering Advertising

Advertising that stimulates primary demand and usually occurs early in the PLC when product categories are new with only one real brand.

Breakeven Analysis

An analytical tool that calculates the sales of a brand necessary to break even.

Infomercials

An extended direct response advertisement, typically a television ad, which presents an offer and usually shows an exaggerated product demonstration to prompt customer response.

Stock Keeping Unit (SKU)

An identifying code that retailers give to each item they carry.

Schedule Intensity

An overall indicator of how heavily exposed a brand is through media advertising. Components: Reach and Frequency Metrics: Gross Impressions and Gross Rating Points

Adaptive selling

An unscripted sales presentation that begins with salesperson questioning of a prospect about his or her needs and proceeds to the salesperson responding to the needs with specific product information and recommendations.

Personal Selling

Any selling activity that involves direct interaction between buyer and seller.

Hits

Browser contacts with a website.

Category Volume

Calculates how well the product category of a brand sells at the retailers carrying the brand.

Comparative Advertising

Competitive advertising that mentions one or more competitive brands by name.

Percent Change in Price

Converts the change in price from the old price to the new price.

Institutional Advertising

Corporate image advertising and advocacy advertising were covered earlier in the section on advertising. Here, we note that in larger companies, these advertising efforts are sometimes controlled by public relations departments.

Bounce rate

The percentage of visitors to a site who navigate away without venturing beyond the landing page.

Digital Media Contest

Digital media, including company websites and social media sites, provide excellent platforms for making press releases and media kits easily available to stakeholder groups and the news media. However, digital media have become marketing public relations tools in and of themselves. For example, companies now routinely use social media platforms such as Twitter to make brief comments on issues or events that affect or enhance company efforts. A company that uses sports stars to endorse products may use Twitter to congratulate these stars on big accomplishments. Or when company employees engage in charitable activities or simply go out of their way to help others, company social media accounts may be used to let the community know.

Waste Coverage

Exposing people outside a target audience to an advertising message, or overexposing or underexposing members of a target audience to a marketing message.

Press Conferences

For particularly important initiatives or information, company executives may hold a press conference, but only if the "news" is truly important to the news organization, not just the company. Having corporate executives visible and accessible to the press can do much to generate goodwill in the community.

Meeting Customer Objections

Good salespeople will know the likely objections and craft persuasive responses to valid objections. With experience, salespeople develop an accurate sense of when a prospect needs a gentle nudge and how to persist without being pushy or rude.

Prospecting

Identifying and qualifying potential customers.

Relatively Inelastic Demand

Occurs when a price change produces a proportionally smaller change in quantity sold.

Relatively Elastic Demand

Occurs when the percent change in quantity is greater than the percent change in price.

Breakeven Revenue (BER) or Breakeven Sales (BE$)

The amount of revenue of a brand needed to cover costs. Calculated as BEQ x Price

Frequency

The average number of times members of the target audience see the advertisement.

Special Events

Organizations very frequently host or sponsor a variety of events and activities that contribute to the quality of life in the communities in which the organizations operate or sell their products. These may include sporting events, festivals, artistic exhibitions, and any other event appropriate to the public relations objectives of the organization. Many of these events involve the purchase of advertising sold by the sponsors of events, and should also be integrated with social media comments about the company's participation.

Direct Marketing

Personalized promotion based on making an offer to individual customers.

Marketing Public Relations

Portion of the public relations efforts that directly assist marketing.

Sales contests and incentives

Producers frequently offer incentives or sponsor sales competitions for the sales forces of retailers to encourage the retail salespeople to emphasize the producer's products to consumers. For example, Maytag might offer a bonus (called a "spiff" or "push money") to appliance store salespeople for each Maytag appliance they sell. Retail store owners sometimes ask that spiffs not be offered to their salespeople; spiffs may encourage retail salespeople to direct their efforts toward a brand that the retail store owner does not wish to emphasize since the retailer will most likely want to sell the product with the highest margin.

Cooperative Advertising

Producers pay a significant part of retailers' local advertising bills if retailers feature the producers' products prominently in the local advertising. While large global retailers take advantage of cooperative advertising, some programs are specifically directed to small independent retailers.

Relevant Outlets

Retail outlets that members of a target market visit with some regularity.

Closing the sale

The act of explicitly asking a prospect to place an order.

Approach

The first meaningful or substantive contact with a prospect.

Execution Style

The forms that advertising creative actually take in promotional materials.

Guidelines for Effective Direct Marketing

The list has to be recent and appropriate or relevant. Marketers collect their own lists from past customers or contacts or purchase lists from list services or other companies. But, no matter the source of the list, the list must be useful, which means relevant for the product and recent. Any list over 3 months old might be problematic. The offer must be attractive. This seems obvious, but because customers are skeptical of direct marketing, the offer must grab attention immediately and be significant with a high level of perceived value to the individual customer. The timing of the offer must maximize perceived value. For example, if your offer is for a discounted car service, you need to send the offer just when the customer needs a service. Too early and the offer is less valuable. Too late and the offer is ignored. You must have an effective and convenient response option for customers. If the customer sees value in the offer, you need to make it as easy as possible for the customer to respond. Most companies use multiple response methods, which might include online, phone, or physical for some companies. The response options should maximize customer convenience. Creative communications increase attention and awareness, and generally are more effective than those that are less creative. However, remember that creativity can sometimes detract from effectiveness. The offer is more important than creativity. The media must match the offer, customer, and message. Some customers need more information. Some customers do not respond to email promotions. Some customers don't shop online for certain products. The point of direct marketing is to identify who your customers are, what they want, and how to communicate your offer to them. This is one of the main points differentiating personalized from group promotion.

Public Relations

The management function that evaluates public attitudes, identifies the policies and procedures of an organization with the public interest, and executes a program of action (and communication) to earn public understanding and acceptance.

Return on Investment (ROI)

The net profit return on some investment expressed as a percentage.

Page Views

The number of people who go to a website and view at least some of the information there.

Distribution Intensity

The number of retail outlets that carry a particular brand. Measured by Relative Outlet Rate

Stockturn Rate

The number of times the inventory for a product is completely replenished in a given period of time.

Visitors

The number of unique people, or at least unique devices, who visit a website.

Return on Marketing Investment (ROMI)

The percent contribution of marketing investments to a firm's gross profits.

Brand Growth Rate

The percent increase or decrease in sales of a brand between two points of time.

Price Elasticity

The percentage change in quantity sold that occurs with a percentage change in price.

Brand Trial Rate

The percentage of a particular target group that purchases a brand for the first time.

Reach

The percentage of a target audience that sees an advertisement at least once during a given period of time. Percentage of people in a target audience exposed to an advertisement

Market Penetration

The percentage of a target population that has purchased a product at least once.

Stockout Days

The percentage of days in a period that a specific outlet is out of stock of a particular brand.

Conversion Rate

The percentage of message recipients who perform the action requested in the email. Percentage of a site's visitors who become participants or customers

Stockout Rate

The percentage of outlets that run out of inventory of a particular product during a given period of time.

Clickthrough rate

The percentage of people seeing an online advertisement who click the ad to seek further information from the advertiser.

Relative Market Share

The percentage of sales of a particular brand among a set of key competitors.

Market Share

The percentage of the total sales in a product category going to a particular brand.

Pre-approach

The series of preliminary contacts a salesperson makes with a prospect prior to the approach.

Tactics

The short-term, narrow operational decisions and actions that are used to execute larger marketing strategies.

Gross Impressions

The total number of times an advertisement is seen by members of a target audience.

Breakeven Quantity

The unit amount of a brand at a given price needed to be sold to break even. Number of units that must be sold

Promotional Allowances

These are also known as "merchandising allowances" (not to be confused with merchandise allowances). They are price reductions or free merchandise given to retailers for special promotional activities in support of a brand. For example, producers may give retailers free in-store signage or special displays to feature merchandise at sale prices.

Facebook Insights

Tools that give businesses and other Facebook users the ability to collect and analyze data about users who visit Facebook pages.

Buying allowances

Various discounts or incentives offered to retailers. Given as off-invoice discounts or merchandise allowances.

Trial Closes

When salespeople ask a prospect whether their objections have been addressed satisfactorily. Helps salespeople transition from the presentation to the close.

Lagged Effect

advertising now may have an effect on sales much later in time

Media Kits

basically an enhanced press release. In addition to the press release itself, the media kit should contain other features that make it easy for editors to run the story. This may include edited film or video relevant to the story, sound bites or clips of company executives speaking about the subject matter, or relevant photographs. Media kits are frequently posted for download to company websites and linked through social media.

Trade Shows

bring marketers and potential organizational customers together in one location over several days. Trade shows are an important marketing tool, especially for B2B marketers. B2B trade shows are expected to represent almost $17 billion in the United States in 2021. One of the largest is the Consumer Electronics Show (CES). Held annually in January, this trade show represents the almost $400 billion consumer tech industry and has over 180,000 attendees with over 4,400 exhibitors. Due to Covid 19, the 2021 CES event was held virtually. Marketers use trade shows to generate sales leads, meet with important suppliers and customers, and to check on competition, and trade shows represent the best return on marketing investment for many B2B sellers

Promotion Mix

collection of tools used to promote

Promotion

covers a broad range of marketing activities

Communication Objectives

focus on how well a promotional activity conveys information and meaning to a target market (expensive to determine) Awareness - how many people have heard of it Knowledge - how many people know certain facts Liking - positive feelings towards the product Preference - stated in terms of competitive brands

Non-Sales Behavioral Objectives

objectives based on behaviors other than sales (include store traffic counts, phone inquiries, contest entries, website hits, and social media likes, among others)

Training Programs

offered at exotic locations, and the retailer benefits by having their salespeople travel to some resort to receive training at the producer's expense. The result is often a relaxed, excited, motivated, and knowledgeable retail sales force, which helps the producer and the retailer.

Impression

one advertisement being seen once by one person during a given period of time

Advertising

paid, nonpersonal communication by a sponsor to an audience

Hierarchy of Affects Model

postulates that people must pass through two cognitive and two emotional states before taking an action, such as visiting a store or making a purchase decision

Sales-Related Objectives

set sales targets during and after a promotional campaign and may be expressed in either absolute terms, such as unit or dollar sales, or relative terms, such as percent growth or market share

Free Premiums

small gifts sent to consumers who provide proof of purchase, or small prizes offered inside packages such as toys inside snack or cereal boxes

Press Releases

the primary public relations tool, announce new product developments or rollouts, advertising campaigns, price changes, research breakthroughs, and other marketing initiatives. Companies use press releases to get the news media to pick up a story and publish or broadcast it. Because news outlets receive hundreds of press releases annually, often dozens every day, companies must ensure the press release is well written according to accepted journalistic standards so that it is easy for news outlets to use. Companies coordinate press releases with their social media presence and typically share positive coverage they receive in the news. Tesla, for example, maintains a webpage with links to press coverage it receives from major television networks, newspapers, and online news sites. Starbucks's Newsroom page, accessible from its corporate website, maintains an archive of press releases from the company dating many years. Included on the Newsroom page are links to video footage, making it easy for news outlets to use materials related to Starbucks.

Group Promotion

used to target segments of customers based on customer characteristics and communication objectives

Integrated Marketing Communications (IMC)

utilizes multiple channels of communication to project a single, unified, and compelling message about a brand