Unit 4 Test
What is 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
It is best to be prepared and handle objections as they
Arise
The term for the point at which the money a company brings in from selling products equals the amount spent producing the products.
Break-even point
In step 2, define advertising objectives, of the general steps in developing and implementing and advertising campaign, what are the two main terms that objectives can be defined on the basis of? What are examples of the types of objectives under each?
Objectives can be defined on the basis of: a. Sales i. Increasing dollar sales or unit sales ii. Increasing sales by a percentage iii. Increasing market share b. Communication i. Increase product or brand awareness ii. Make consumers' attitudes more favorable iii. Heighten consumers knowledge of product features iV. Create awareness
40. What is bundle pricing? What is an example of how it is used?
Packaging together two or more complementary products and selling them at a single price
What is personal selling
Paid personal communication that attempts to informs customers and persuades them to buy products in an exchange situation
What is price leader promotional pricing? Why would it be used?
Products priced near or even below cost to attract customers by offering them especially low prices on a few items, with the expectation that they will purchase other items as well
What is the first step in the personal selling process? What are sources of names for this step?
Prospecting- a data base of potential customers Sources of the names- -Company sales records -Trade shows -Databases -Trade association directories -Traditional and online advertising - generate leads -Referrals from current customers
In marginal analysis, when should the firm stop producing additional units to maximize profits?
The firm should produce at the point where marginal revenue (MR) equals marginal cost (MC) because it is the most profitable level of production
What are examples of consumer sales promotions
- coupons, Cents off, Money Refunds, Rebates, Frequent users incentives, Ponit of Purchase materials, Free samples, Demonstrations, premiums, Games
What are the five characteristics of online media? What is the definition of each? What is an example of each?
-Addressability - the ability of the marketer to identify customers before they make a purchase (Amazon installing cookies on a user's computer) -Interactivity - the ability of customers to express their needs and wants directly to the firm in response to its marketing communications (Texas Instruments interacting with customers on its Facebook page) -Accessibility - the ability for marketers to obtain digital information (Google can use Web searches done through its search engine to learn about the customer's interests) -Connectivity - the ability for consumers to be connected with marketers along with other consumers (Mary Kay offers users the opportunity to sign up for My MK, which connects customers with beauty consultants and allows them to develop their own personalized space) -Control - the customer's ability to regulate the information they view as well as the rate and exposure to that information (Consumers use Kayak.com to discover the best travel deals)
A cash discount is typically represented as 2/10 net 30 on an invoice. What does that actually mean?
A 2% discount if paid within the first 10 days, the full amount is due within 30 days
What are buying allowances
A temporary price reduction to resellers for purchasing specific quantities of a product
In terms of the advertising message, what is copy? Why are headlines a critical component of the copy?
The verbal portion of the advertisement, Headlines draw in the reader's attention to the body of the advertisement
What are the three general types of media schedules? What are the levels and general schedules for each type of schedule
a. Continuous-A continuous media schedule runs steadily with little variation. Advertising during this time can be heavy or light (maybe a commercial runs on TV once a week, or on the radio 3 times a day), but the point is that the schedule remains constant throughout the period of a campaign or all year long. This type of schedule works best for non-seasonal products and services such as toilet paper and hair salons. b. Flighting- Flighting involves alternating periods of advertising with periods of no advertising at all. This approach is best suited for seasonal products like Halloween costumes and camping equipment because ads are concentrated in periods of peak demand. c. Pulsing- Pulsing combines continuous and flighting scheduling by using light advertising year-round and heavy advertising during high selling periods. Pulsing is best used for products that sell throughout the year but experience higher sales during certain periods (lemonade sells all year but more during the summer months, for example)
What are the publicity-based public relations tools? What defines each?
a. Publicity-based public relations tools include i. News release- a short piece of cop publicizing an event or a product ii. Feature article- a manuscript of up to 3000 words prepared for a specific publication iii. Captioned photograph - photograph with a brief description of its contents iv. Press conference - a meeting used to announce major news events
What is publicity
notice or attention given to someone or something by the media.
What must a salesperson do before contacting prospects? What is that step in the personal selling process called?
pre-approach- the salesperson analyzes information about the prospect's needs -Identify key decision makers -Review account histories and problems -Contact other clients for information -Assess credit histories and problems -Prepare sales presentations -Identify product needs -Obtain relevant literature
What type of public relations evaluation is used when an organization wants to measure the extent to which stakeholders view it as being socially responsible?
Social audit
In which step does the salesperson contact a potential customer
- Approach stage
What are trade sales promotions
- Attempt to persuade wholesalers and retailers to carry and aggressively market a producer's product
Should the sales person just attempt to close one time?
- attempt to close the sale several times
What is the definition of price?
-The value paid for a product in a marketing exchange
What are the two trends we discussed related to consumer-generated marketing (on the slide deck)?
-Consumers publish their own thoughts, opinions, reviews and product discussions through blogs or digital media -Consumers' tendencies to trust other consumers over corporations
What are the different types of internet users as defined by social technographics? What are the activities that each type of user typically performs?
-Creators - publish a blog, personal webpages, original videos, original audio/music, or write articles/stories and post them -Conversationalists - update status on social networking sites, post updates on Twitter -Critics - post ratings/reviews of products or services, comment on someone else's blog, contribute to online forums, contribute to/edit articles in a wiki -Collectors - Use RSS feeds, add tags to webpages or photos, "vote" for websites online -Joiners - maintain profile on a social networking site, visit social networking sites -Spectators - read blogs, watch video from other users, listen to podcasts, read online forums, read customer ratings/reviews -Inactives - none of the activities
What is the difference between the terms Digital Marketing and Electronic/E-marketing?
-Digital marketing uses all digital media, including the Internet and mobile and interactive channels, to develop communication and exchanges with customers -Electronic/E-marketing is the strategic process of distributing, promoting and pricing products and discovering the desires of customers using digital media and digital marketing
What does the demand curve for a prestige product look like? What happens to the quantity demanded if the price is decreased or increased from the "medium" or ideal price?
-If price increases, quantity demanded increases up to a certain point and then quantity demanded starts to decrease again
What are the main types of advertising? What are the definitions of each? What are examples of each?
-Institutional advertising- Promotes organizational images, ideas and political issues -Advocacy advertising- Advertising that promotes a company's position on a public issue -Product advertising- promotes the uses, features and benefits of products -two types: Pioneer advertising and Competitive advertising Three types of competitive advertising: Comparative-advertisement in which a particular product, or service, specifically mentions a competitor by name for the express purpose of showing why the competitor is inferior to the product naming it Reminder-A marketing strategy typically consisting of brief messages sent with the objective of reminding a target consumer group about a product or service or of introducing a new theme into an existing marketing program. Reinforcement-targeted at consumers who have already tried and used the product before and aims at reminding them of its continued existence and unique benefits
Why is price a key element in the marketing mix?
-It relates directly to the generation of total revenue
In relation to the relationships between demand, cost and profit, what does marginal analysis examine?
-Marginal analysis examines what happens to a firm's costs and revenues when production (or sales volume) changes by one unit
What are the various approaches used for advertising appropriation? How is the advertising budget calculated in the percent-of-sales approach?
-Objective-and-task approach-A budgeting strategy based on the cost required to achieve a business or sales objective. -Percent-of-sales approach-most popular method due to ease problem - when sales increase, the advtg budget will increase, but when sales decline, the budget will decline -Competition-matching approach- managers establish budget amounts by matching the competition's percentage of sales expenditures -Arbitrary approach - based on intuitive judgement of executives, weakest method: virtually no theoretic basis is considered, and the budgetary amount is often set flat
What are the two pricing strategies for new products? What are each trying to achieve?
-Price Skimming - charging the highest possible price that buyers who most desire the product will pay -Penetration Pricing - setting prices below those of competing brands to penetrate a market and gain a significant market share quickly
What are the two different ways price may be used (or not used) in terms of competition?
-Price competition -Nonprice competition
With the standard demand curve that exists for most products, if prices are raised, what happens to the quantity demanded?
-Quantity demanded decreases
What must the salesperson do during the 'making the presentation' step of the personal selling process?
-The salesperson must attract and hold the prospect's attention, stimulate interest in and spark a desire for the product -Adapt the presentation to the needs of the prospect
What are the five types of price discounts for business markets? What are examples of each
-Trade - to attract and keep effective resellers by compensating them for performing certain functions, such as transportation, warehousing, selling, and providing credit (college bookstore pays about 1/3 less for a new textbook than the retail price a student pays) -Quantity - to encourage customers to buy in large quantities when making purchases and, in the case of cumulative discounts, to encourage customer loyalty (large department store chains purchase some women's apparel at lower prices than do individually owned specialty stores) -Cash - to reduce expenses associated with accounts receivable and collection by encouraging prompt payment of accounts (numerous companies serving business markets allow a 2 percent discount if an account is paid within 10 days) -Seasonal - to allow a marketer to use resources more efficiently by stimulating sales during off-peak periods (Florida hotels provide companies holding national and regional sales meetings with deeply discounted accommodations during the summer months) -Allowance - in the case of a trade-in allowance, to assist the buyer in making the purchase and potentially earning a profit on the resale of used equipment; in the case of a promotional allowance, to ensure that dealer participate in advertising and sales support programs (a farm equipment dealer takes a farmer's used tractor as a trade-in on a new one)
What is public relations?
-communication efforts used to create and maintain favorable relations between an organization and its stakeholders
What are dealer listings?
Advertisements that promote a product and identify the names of participating retailers that sell the product
When can advertising be evaluated? What types of evaluations/tests are used to judge advertising?
Advertising can be evaluated before, during and after the campaign a. Pretest / Consumer jury b. During a campaign c. Posttest Posttest methods include: d. Recognition test-respondents are shown the actual ad and are asked if the recognize it e. Unaided recall test- respondents are asked to identify advertisements they have seen recently but are not given any recall clues f. Aided recall test- asks respondents to identify recent ads and provides clues to jog their memories
What is the advertising platform?
Advertising platforms are basic issues or selling points to be included in an advertising campaign
What is geographic pricing?
Reductions for transportation and other costs related to the physical distance between buyer and seller
