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MKT 230 exam 1
Chapters 1-3, 5, 6, 8, 9
266
Marketing
Undergraduate 3
09/22/2010

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Term
Customer experience
Definition
The internal response that customers have to all aspects of an organization and its offering
Term
Customer Relationship Management (CRM)
Definition
The process of identifying prospective buyers, understanding them intimately, and developing favorable long-term perceptions of the orqanization and its offerings so that buyers will choose them in the marketplace.
Term
Customer Value
Definition
The unique combination of benefits received by targeted buyers that includes quality, convenience, on-time delivery, and both before-sale and after-sale service at a specific price.
Term
Environmental forces
Definition
The uncontrollable forces in a marketing decision involving social, economic, technological, competitive, and regulatory forces.
Term
Exchange
Definition
The trade of things of value between buyer and seller so that each is better off after the trade
Term
Market
Definition
People with both the desire and the ability to buy a specific offering
Term
Market orientation
Definition
An organization that focuses its efforts on (1) Continuously collecting information about customers' needs, (2) sharing this information across departments, and (3) using it to create customer value
Term
Marketing
Definition
The activity for creating, communicating, delivering, and exchanging offerings that benefit the organization, its stakeholders, and society at large.
Term
Marketing concept
Definition
The idea that an organization should (1) strive to satisfy the needs of consumers (2) while also trying to achieve the organization's goals.
Term
Marketing mix
Definition
The marketing manager's controllable factors -- product, price, promotion, and place -- that can be used to solve a marketing problem.
Term
Marketing program
Definition
A plan that integrates the marketing mix to provide a good, service, or idea to prospective buyers.
Term
Organizational buyers
Definition
Those manufacturers, wholesalers, retailers, and government agencies that buy goods and services for their own use of for resale.
Term
Relationship Marketing
Definition
Linkw the organization to its individual customers, employees, suppliers, and other partners for their mutual long-term benefits.
Term
Societal marketing concept
Definition
The view that organizations should satisfy the needs of consumers in a way that provides for society's well-being
Term
Target Market
Definition
One or more specific groups of potential consumers toward which an organization directs its marketing program.
Term
Ultimate Consumers
Definition
The people who use the goods and services purchased for a household. Also called consumers, buyers or customers.
Term
Utility
Definition
The benefits or customer value received by users of the product
Term
Business
Definition
The clear, broad, underlying industry or market sector of an organization's offering.
Term
Business Portfolio Analysis
Definition
A technique that managers use to quantify performance measures and growth targets to analyze its clients' strategic business units (SBUs) as though they were a collection of separate investments.
Term
Competitive advantage
Definition
A unique strength relative to competitors that provides superior returns, often based on quality, time, cost, or innovation
Term
Core Values
Definition
The fundamental, passionate, and enduring principles of an organization that guide its conduct over time.
Term
Corporate level
Definition
The level in an organization where top management directs overall strategy for the entire organization
Term
Cross-functional teams
Definition
A small number of people from different departments in an organization who are mutually accountable to accomplish a task or common set of performance goals.
Term
Diversification Analysis
Definition
A tool that helps a firm search for growth opportunities from among current and new markets as well as current and new products
Term
Functional level
Definition
The level in an organization where groups of specialists actually create value for the organization
Term
Goals
Definition
Statements of an accomplishment if a task to be achieved, often by a specific time. also called "Objectives"
Term
Market segmentation
Definition
Involves aggregating prospective buyers into groups, or segments, that (1) have common needs and (2) will respond similarly to a marketing action.
Term
Market share
Definition
The ratio of sales revenue of the firm to the total sales revenue of all firms in the industry, including the firm itself/
Term
Marketing dashboard
Definition
The visual computer display of the essential information related to achieving a marketing objective.
Term
Marketing metric
Definition
A measure of the quantitative value or trend of a marketing activity or result.
Term
Marketing plan
Definition
A road map for the marketing activities of an organization for a specified future time period, such as one year or five years
Term
Marketing strategy
Definition
The means by which a marketing goal is to be achieved, usually characterized by a specified target market and a marketing program to reach it.
Term
Marketing Tactics
Definition
Detailed day-to-day operational decisions essential to the overall success of marketing strategies
Term
Mission
Definition
A statement of the organization's function in society, often identifying its customers, markets, products, and technologies. Often used interchangeably with "vision"
Term
Objectives
Definition
Statements of an accomplishment of a task to b achieved, often by a specific time. Also called "goals"
Term
Organizational Culture
Definition
The set of values, ideas, attitudes, and norms of behavior that is learned and shared among the members of an organization.
Term
Points of Difference
Definition
Those characteristics of a product that make it superior to competitive substitutes.
Term
Profit
Definition
The money left after a business firm's total expenses are subtracted from its total revenues and is the reward for the risk it undertakes in marketing its offerings
Term
Profit
Definition
The money left after a business firm's total expenses are subtracted from its total revenues and is the reward for the risk it undertakes in marketing its offerings
Term
Situation Analysis
Definition
Taking stock of where the firm or product hes been recently, where it is now, and where it is headed in terms of the organization's marketing plans and the external forces and trends affecting it.
Term
Strategic Business Unit (SBU)
Definition
A subsidiary, division, or unit of an organization that markets a set of related offerings to a clearly defined group of customers
Term
Strategic Marketing Process
Definition
The approach whereby an organization allocates its marketing mix resources to reach its target markets
Term
Strategy
Definition
An organization's long-term course of action designed to deliver a unique customer experience while achieving its goals
Term
SWOT analysis
Definition
An acronym describing an organization's appraisal of its internal Strengths Weaknesses and its external Opportunities and Threats
Term
Bidder's list
Definition
A list of firms believed to be qualified to supply a given time
Term
Business marketing
Definition
The marketing of goods and services to companies, governments, pr not-for-profit organizations for use in the creation of goods and services that they can produce and market to others.
Term
Buy classes
Definition
Consists of three types of organizations buy that assist in providing other products for resale. Also called "B2B products", or "industrial products"
Term
Buying center
Definition
The group of people in an organization who participate in the buying process and share common goals, risks, and knowledge important to a purchase decision.
Term
Derived demand
Definition
The demand for industrial products and services is driven by, or derived from, demand for consumer products and services
Term
e-marketplaces
Definition
Online trading communities that bring together buyers and supplier organizations to make possible the real time exchange of information, money, products and services. also called "B2B exchanges" or "e-hubs"
Term
ISO 9000
Definition
Standards for registration and certification of a manufacturer's quality management and assurance system based on an on-site audit of practices and procedures developed by the International Standards Organization (ISO)
Term
Make-buy decisions
Definition
An evaluation of whether components and assemblies will be purchased from outside suppliers or built by the company itself.
Term
North American Industry Classification System (NAICS)
Definition
Provides common industry definitions for Canada, Mexico, and the United States, which makes it easier to measure economic activity in the three member countries of the North American Free Trade Agreement (NAFTA)
Term
Organizational Buyers
Definition
Those manufacturers, wholesalers. retailers, and government agencies that buy goods and services for their own use or for resale.
Term
Organizational buying behavior
Definition
The decision-making process that organizations use to establish the need for products and services and identify, evaluate, and choose among alternative brands and suppliers
Term
Organizational buying criteria
Definition
The objective attributes of the supplier's products and services and the capabilities of the supplier itself
Term
Reciprocity
Definition
An industrial buying practice in which two organizations agree to purchase each others' products and services
Term
Reverse Auction
Definition
In an e-marketplace, it is an online auction in which a buyer communicates a need for a product or service and would-be suppliers are invited to bid in competition with each other.
Term
Supplier development
Definition
The deliberate effort by organizational buyers to build relationships that shape suppliers' products, services, and capabilities to fit a buyer's needs and those of its customers
Term
Supply partnership
Definition
A relationship that exists when a buyer and its supplier adopt mutually beneficial objectives, policies, and procedures for the purpose of lowering the cost or increasing the value of products and services delivered to the ultimate consumer
Term
Traditional auction
Definition
In an e-marketplace, it is an online auction in which a seller puts an item up for sale and would-be buyers are invited to bid in competition with each other.
Term
Value analysis
Definition
A systematic appraisal of the design, quality, and performance of a product to reduce purchasing costs
Term
Attitude
Definition
A learned predisposition to respond to an object or class of objects in a consistently favorable or unfavorable way.
Term
Beliefs
Definition
A consumer's subjective perception of how a product or brand performs on different attributes based on personal experience, advertising, and discussions with other people
Term
Brand loyalty
Definition
A favorable attitude toward and consistent purchase of a single brand over time
Term
Cognitive dissonance
Definition
The feeling of post-purchase psychological tension or anxiety consumers may experience when faced with two or more highly attractive alternatives
Term
Consideration set
Definition
The group of brands that a consumer would consider acceptable from among all the brands in the product class of which he or she is aware in the product class
Term
Consumer behavior
Definition
The actions a person takes in purchasing and using products and services, including the mental and social processes that come before and after these actions
Term
Consumer socialization
Definition
The process by which people acquire the skills, knowledge, and attitudes necessary to function as consumers
Term
Evaluative criteria
Definition
Factors that represent both the objective attributes of a brand and the subjective ones a consumer uses to compare different products and brands
Term
Family life cycle
Definition
The distinct phases that a family progresses through from formation to retirement, each phase bringing with it identifiable purchasing behaviors.
Term
Involvement
Definition
The personal, social, and economic significance of the purchase to the consumer
Term
Learning
Definition
Those behaviors that result from (1) repeated experience and (2) reasoning
Term
Lifestyle
Definition
A mode of living that is identified by how people spend their time and resources, what they consider important in their environment, and what they think of themselves and the world around them
Term
Motivation
Definition
The energizing force that stimulates behavior to satisfy a need
Term
Opinion leaders
Definition
Individuals who exert direct or indirect social influence over others
Term
Perceived risk
Definition
The anxiety felt because the consumer cannot anticipate the outcomes of a purchase but believes that there may be negative consequences.
Term
Perception
Definition
The process by which an individual selects, organizes, and interprets information to create a meaningful picture of the world
Term
Personality
Definition
A person's consistent behaviors or responses to recurring situations
Term
Purchase decision process
Definition
The 5 stages a buyer passes through in making choices about which products and services to buy: (1) problem recognition (2) information search (3) alternative evaluation (4) purchase decision and (5) post-purchase behavior
Term
Reference groups
Definition
People to whom an individual looks as a basis for self-appraisal
Term
Self-concept
Definition
The way people see themselves and the way they believe others see them
Term
Situational influences
Definition
The 5 aspects of the purchase situation that impacts the consumer's purchase decision process: (1) the purchase task (2) social surroundings (3) physical surroundings (4) temporal effects and (5) antecedent states
Term
Social class
Definition
The relatively permanent, homogeneous divisions in a society into which people sharing similar values, interests, and behavior can be grouped
Term
Subcultures
Definition
Subgroups within the larger, or national, culture with unique values, ideas, and attitudes
Term
Subliminal perception
Definition
Seeing or hearing messages without being aware of them
Term
Word of mouth
Definition
The influencing of people during conversations
Term
Bidder's list
Definition
A list of firms believed to be qualified to supply a given item
Term
Business marketing
Definition
The marketing of goods and services to companies, governments, or not-for-profit organizations for use in the creation of goods and services that they can produce and market to others
Term
baby boomers
Definition
The generation of children born between 1946 and 1964
Term
Barriers to entry
Definition
Business practices or conditions that make it difficult for new firms to enter the market
Term
Blended family
Definition
A family formed by merging two previously separated units into a single household
Term
Competition
Definition
The alternative firms that could provide a product to satisfy a specific markets' needs
Term
Consumerism
Definition
A grassroots movement started in the 1960s to increase the influence, power, and rights of consumers in dealing with insitiutions
Term
Culture
Definition
The set of values, ideas, and attitudes that are learned and shared among the members of a group
Term
Demographics
Definition
Describing a population according to selected characteristics such as age, gender, ethnicity, income, and occupation
Term
Discretionary income
Definition
The money that remains after paying for taxes and necessities
Term
Economy
Definition
Pertains to the income, expenditures, and resources that affect the cost of running a business and household
Term
Electronic commerce
Definition
Any activity that uses some form of electronic communication in the inventory, exchange, advertisement, distribution, and payment of goods and services
Term
Environmental scanning
Definition
The process of continually acquiring information on events occurring outside the organization to identify and interpret potential trends
Term
Generation X
Definition
Includes the 15% of the population born between 1965 and 1975
Term
Generation Y
Definition
Includes the 72 million Americans born between 1977 and 1994
Term
Gross income
Definition
The total amount of money made in one year by a person, household, or family unit. Also known as "money income" by the census bureau
Term
Marketspace
Definition
Information--and communication-- based on electronic exchange environment mostly occupied by sophisticated computer and telecommunication technologies and digitized offerings
Term
Multicultural marketing
Definition
Combinations of the marketing mix that reflect the unique attitudes, ancestry, communication preferences, and lifestyles of different races
Term
Regulation
Definition
Restrictions state and federal laws place on business with regard to the conduct of its activities
Term
Self-regulation
Definition
An alternative to government control where an industry attempts to police itself
Term
Social forces
Definition
The demographic characteristics of the population and its values
Term
Technology
Definition
Inventions or innovations from applied science or engineering research
Term
Value consciousness
Definition
The concern for obtaining the best quality, features, and performance of a product to reduce purchasing costs
Term
Constraints
Definition
In a decision, the restrictions placed on potential solutions to a problem
Term
Data
Definition
The facts and figures related to the problem that are divided into two main parts: secondary data and primary data
Term
Constraints
Definition
In a decision, the restrictions placed on potential solutions to a problem
Term
Data mining
Definition
The extraction of hidden predictive information from large databases to find statistical links between consumer purchasing patterns and marketing actions
Term
Decision
Definition
A conscious choice from among 2 or more alternatives
Term
Information technology
Definition
Involves operating computer networks that can store and process data
Term
Marketing research
Definition
The process of defining a marketing problem and opportunity, systematically collecting and analyzing information, and recommending actions
Term
Measures of success
Definition
Criteria or standards used in evaluating proposed solutions to the problem
Term
Observational data
Definition
Facts and figures obtained by watching, either mechanically or in person, how people actually behave
Term
Primary data
Definition
Facts and figures that are newly collected for the project
Term
Questionnaire data
Definition
Facts and figures obtained by asking people about their attitudes, awareness, intentions, and behaviors
Term
Sales forecast
Definition
The total sales of a product that a firm expects to sell during a specified time period under specified environmental conditions and its won marketing efforts. Also called a "company forecast"
Term
Secondary data
Definition
Facts and figures that have already been recorded before the project at hand
Term
80/20 rule
Definition
A concept that suggests 80% of a firm's sales are obtained from 20% of its customers
Term
Market-product grid
Definition
A framework to relate the market segments of potential buyers to products offered or potential marketing actions by an organization
Term
Market segments
Definition
The relatively homogeneous groups of prospective buyers that result from the market segmentation process
Term
Perceptual map
Definition
A means of displaying or graphing in 2D the location of products or brands in the minds of consumers to enable a manager to see how consumers perceive competing products or brands, as well as its own product or brand to develop marketing actions to move its product or brand to an ideal position
Term
Product differentiation
Definition
A marketing strategy that involves a firm using different marketing mix activities to help consumers perceive the product as being different and better than competing products
Term
Product positioning
Definition
The place a product occupies in consumers' minds on important attributes relative to competitive products
Term
Product repositioning
Definition
Changing the place a product occupies in a consumers' mind relative to competitive products
Term
Usage rate
Definition
The quantity consumed or patronage (store visits) during a specific period. also called "frequency marketing"
Term
Cause marketing
Definition
occurs when the charitable contributions of a firm are tied directly to the customer revenues produced through the promotion of one of its products
Term
caveat emptor
Definition
The legal concept of "let the buyer beware" that was pervasive in the American business culture prior to the 1960s
Term
code of ethics
Definition
A formal statement of ethical principles and rules of conduct
Term
Consumer Bill of Rights
Definition
A law that codified the ethics of exchange between buyers and sellers, including the rights to safety, to be informed to choose, and to be heard
Term
economic espionage
Definition
The clandestine collection of trade secrets for proprietary information about a company's competitors
Term
ethics
Definition
the moral principles and values that govern the actions and decisions of an individual or group.
Term
green marketing
Definition
marketing efforts to produce, promote, and reclaim environmentally sensitive products
Term
laws
Definition
society's values and standards that are enforceable in the courts
Term
moral idealism
Definition
a personal moral philosophy that considers certain individual rights or duties as universal, regardless of the outcome
Term
social audit
Definition
a systematic assessment of a firm's objectives, strategies, and performance in terms of social responsibility
Term
social responsibility
Definition
the idea that organizations are part of a larger society and are accountable to that society for their actions
Term
sustainable development
Definition
conducting business in a way that protects the natural environment while making economic progress
Term
triple-bottom line
Definition
the recognition of the need for organizations to improve the state of people, the planet, and profit simultaneously if they are to achieve sustainable, long term growth
Term
utilitarianism
Definition
a personal moral philosophy tht focuses on "the greatest good for the greatest number" by assessing the costs and benefits of the consequences of ethical behavior
Term
whistle-blowers
Definition
employees who report unethical or illegal actions of their employers
Term
back translation
Definition
the practice where a translated word or phrase is retranslated into the original language by a different interpreter to catch errors
Term
balance of trade
Definition
the difference between the monetary value of a nation's exports and imports
Term
bottom of the pyramid
Definition
the largest but poorest socioeconomic group of people in the world
Term
consumer ethnocentrism
Definition
the tendency to believe that it is inappropriate, indeed immoral, to purchase foreign-made products
Term
countertrade
Definition
the practice of using barter rather that money for making global sales
Term
cross-cultural analysis
Definition
the study of similarities and differences among consumers in two or more nations or societies
Term
cultural symbols
Definition
things that represent ideas and concepts
Term
currency exchange rate
Definition
the price of one country's currency expressed in terms of another country's currency
Term
customs
Definition
what is considered normal and expected about the way people do things in a specific country
Term
direct investment
Definition
a global market-entry strategy that entails a domestic firm actually investing in and owning a foreign subsidiary or division
Term
dumping
Definition
when a firm sells a product in a foreign country below its domestic price or below its actual cost
Term
Economic Espionage Act(1996)
Definition
A law that makes the theft off trade secrets by foreign entities a federal crime in the United States
Term
exporting
Definition
a global market-entry strategy in which a company produces goods in one country and sells them in another country
Term
Foreign Corrupt Practices Act(1977)
Definition
A law, amended by the international Anti-dumping and fair competition Act (1998), that makes it a crime for US corporations to bribe an official of a foreign government or political party to obtain or retain business in a foreign country
Term
global brand
Definition
A brand marketed under the same name in multiple countries with similar and centrally coordinated marketing programs
Term
global competition
Definition
Exists when firms originate, produce, and market their products and services worldwide.
Term
global consumers
Definition
consumer groups living in many countries or regions of the world who have similar needs or seek similar features and benefits from products or services.
Term
global marketing strategy
Definition
transnational firms that employ the practice of standardizing marketing activities when there are cultural similarities and adapting them when culture differ
Term
gray market
Definition
a situation where products are sold through unauthorized channels of distribution
Term
gross domestic product (GDP)
Definition
the monetary value of all goods and services produced in a country during one year
Term
joint venture
Definition
a global market-entry strategy in which a foreign company and a local firm invest together to create a local business in order to share ownership, control, and profits of the new company
Term
microfinance
Definition
the practice of offering small, collateral-free loans to individuals who otherwise would no have access to the capital necessary to begin small business or other income-generating activities
Term
multidomestic marketing strategy
Definition
multinational firms that have as many different product variations, brand names, and advertising programs as countries in which they do business
Term
protectionism
Definition
the practice of shielding one or more industries within a county's economy from foreign competition through the use of tariffs or quotas
Term
quota
Definition
a restriction placed on the amount of a product allowed to enter or leave a country
Term
semiotics
Definition
a field of study that examines the correspondence between symbols and their role in the assignment of meaning for people
Term
strategic alliances
Definition
Agreements among two or more independent firms to cooperate for the purpose of achieving common goals
Term
tariffs
Definition
Government taxes on goods or services entering a country that primarily serve to raise prices on imports
Term
values
Definition
a society's personally or socially preferable modes of conduct or states of existence that tend to persist over time
Term
World Trade Organization
Definition
A permanent institution that sets rules governing trade between its members through panels of trade experts who decide on trade disputes between members and issue binding decisions
Term
breadth of product line
Definition
The variety of different product items a store carries
Term
category management
Definition
an approach to managing the assortment of merchandise in which a manager is assigned the responsibility for selecting all products that consumers in a market segment might view as substitutes for each other, with the objective of maximizing sales and profits in the category.
Term
central business district
Definition
the oldest retail setting, usually located in the community's downtown area.
Term
community shopping center
Definition
a retail location that typically has one primary store (usually a department store branch) and often 20 to 40 smaller outlets, serving a population of consumers who are within a 10- to 20-minute drive
Term
depth of product line
Definition
the store carries a large assortment of each product item.
Term
form of ownership
Definition
distinguishes retail outlets based on whether individuals, corporate chains, or contractual systems own the outlet
Term
hypermarket
Definition
a form of scrambled merchandising, which consists of a large store (more than 200,000 square feet) that offers everything in a single outlet, eliminating the need for consumers to shop at more than one location.
Term
intertype competition
Definition
competition between very dissimilar types of retail outlets that results from a scrambled merchandising policy.
Term
level of service
Definition
the degree of service provided to the customer from three types of retailers: self-, limited-, and full service
Term
merchandise line
Definition
describes how many different types of products a store carries and in what assortment
Term
multichannel retailers
Definition
retailers that utilize and integrate a combination of traditional store formats and nonstore formats such as catalogs, television, and online retailing.
Term
off-price retailing
Definition
selling brand-name merchandise at lower than regular prices
Term
power center
Definition
a huge shopping strip with multiple anchor (or national) stores
Term
regional shopping centers
Definition
consist of 50 to 150 stores that typically attract customers who live or work within a 5- to 10- mile range, often containing two or three anchor stores.
Term
retail life cycle
Definition
the process of growth and decline that retail outlets, like products, experience. consists of the early growth, accelerated development, maturity, and decline stages.
Term
retail positioning matrix
Definition
a matrix that positions retail outlets on two dimensions: breadth of product line and value added, such as location, product reliability, or prestige
Term
retailing
Definition
all activities involved in selling, renting, and providing products and services to ultimate consumers for personal, family, or household use.
Term
retailing mix
Definition
the activities related to managing the store and the merchandise in the store, which includes retail pricing, store location, retail communication, and merchandise
Term
scrambled merchandising
Definition
offering several unrelated product lines in a single store
Term
strip mall
Definition
A cluster of neighborhood stores to serve people who are within a 5- to 10- minute drive
Term
telemarketing
Definition
using the telephone to interact with and sell directly to consumers
Term
wheel of retailing
Definition
a concept that describes how new forms of retail outlets enter the market
Term
advertising
Definition
any paid form of nonpersonal communication about an organization, good, service, or idea by an identified sponsor.
Term
all-you-can-afford budgeting
Definition
allocating funds to promotion only after all other budget items are covered
Term
channel of communication
Definition
the means (a salesperson, advertising media, or public relations tools) of conveying a message to receiver during the communication process.
Term
communication
Definition
the process of conveying a message to others that requires six elements: a source, a message, a channel of communication, a receiver, and the processes of encoding and decoding.
Term
competitive parity budgeting
Definition
allocating funds to promotion by matching the competitor's absolute level of spending or the proportion per point of market share.
Term
decoding
Definition
the process of having the receiver take a set of symbols, the message, and transform them back to an idea during the communication process
Term
direct marketing
Definition
a promotion alternative that uses direct communication with consumers to generate a response in the form of an order, a request for further information, or a visit to a retail outlet.
Term
direct orders
Definition
the result of direct marketing offers that contain all the information necessary for a prospective buyer to make a decision to putchase and complete the transaction.
Term
encoding
Definition
the process of having the sender transform an idea into a set of symbols during the communication process
Term
feedback
Definition
in the feedback loop, the sender's interpretation of the response, which indicates whether the message was decoded and understood as intended during the communication process.
Term
field of experience
Definition
a mutually shared understanding and knowledge that the sender and receiver apply to the message so that it can be communicated effectively during the communication process.
Term
hierarchy of effects
Definition
the sequence of stages a prospective buyer goes through from initial awareness of a product to eventual action (either trial or adoption of the product). the stages include awareness, interest, evaluation, trial, and adoption.
Term
integrated marketing communications
Definition
teh concept of designing marketing communications programs that coordinate all promotional activities-advertising, personal selling, sales promotion, public relations, and direct marketing - to provide a consistent message across all audiences.
Term
lead generation
Definition
the result of a direct marketing offer designed tp generate interest in a product or service and a request for additional information.
Term
message
Definition
the information sent by a source to a receiver during the communication process
Term
noise
Definition
extraneous factors that can work against effective communication by distorting a message or the feedback received during the communication process
Term
objective and task budgeting
Definition
allocating funds to promotion whereby the company: (1) determines its promotion objectives ; (2) outlines the tasks to accomplish these objectives; and (3) determines the promotion cost of performing these tasks
Term
percentage of sales budgeting
Definition
allocating funds to promotion as a percentage of past or anticipated sales, in terms of either dollars or units sold.
Term
personal selling
Definition
the two-way flow of communication between a buyer and seller, often in a face-to-face encounter, designed to influence a person's or group's purchase decision
Term
promotional mix
Definition
the combination of one or more communication tools used to: (1) inform prospective buyers about the benefits of the product, (2) persuade them o try it, and (3) remind them later about the benefits they enjoyed by using the product
Term
public relations
Definition
a form of communication management that seeks to influence the feelings, opinions, or beliefs held by customers, prospective customers, stockolders, suppliers, employees, and other publics about a company and its products or services
Term
publicity
Definition
a nonpersonal, indirectly paid presentation of an organization, good, or service
Term
pull strategy
Definition
directing the promotional mix at ultimate consumers to encourage them to ask the retailer for a product
Term
push strategy
Definition
directing the promotional mix to channel members to gain their cooperation in ordering and stocking the product
Term
receivers
Definition
consumers who read, hear, or see the message sent by a source during the communication process
Term
response
Definition
in the feedback loop, the impact the message had on the receiver's knowledge, attitudes, or behaviors during the communication process
Term
sales promotion
Definition
a short-term inducement of value offered to arouse interest in buying a good or service
Term
source
Definition
a company or person who has information to convey during the communication process
Term
traffic generation
Definition
the outcome of a direct marketing offer designed to motivate people to visit a business
Term
advertising
Definition
any paid form of nonpersonal communication about an organization, good, service, or idea by an identified sponsor
Term
consumer-oriented sales promotion
Definition
sales tools used to support a company's advertising and personal selling directed to ultimate consumers
Term
cooperative advertising
Definition
advertising programs by which a manufacturer pays a percentage of the retailer's local advertising expense for advertising the manufacturer's products
Term
cost per thousand
Definition
the cost of reaching 1,000 individuals or households with the advertising message in a given medium
Term
frequency
Definition
the average number of times a person in the target audience is exposed to a message or an advertisement
Term
full-service agency
Definition
an advertising agency that provides the most complete range of services, including market research, media selection, copy development, artwork, and production
Term
gross rating points
Definition
a reference number used by advertisers that is obtained by multiplying reach (expressed as a percentage of the total market) by frequency
Term
infomercials
Definition
program-length (30 minute) advertisements that take an educational approach to communication with potential customers
Term
in-house agencies
Definition
consist of the company's own advertising staff, who may provide full services or a limited range of services
Term
institutional advertisements
Definition
advertisements designed to build goodwill or an image for an organization rather than promote a specific good or service
Term
limited service agencies
Definition
advertising agencies that specialize in one aspect of the advertising process, such as providing creative services to develop the advertising copy, buying previously unpurchased media space, or providing Internet service
Term
posttests
Definition
tests conducted after an advertisement has been shown to the target audience to determine whether it accomplished its intended purpose
Term
pretests
Definition
tests conducted before an advertisement is placed in any medium to determine whether it communicates the intended message or to select among alternative versions of the advertisement
Term
product advertisements
Definition
advertisements that focus on selling a good or service and which take three forms: (1) pioneering (informational) (2) competitive (persuasive) and (3) reminder
Term
product placements
Definition
a consumer sales promotion tool that uses a brand name product in a movie, television show, video game, or a commercial for another product
Term
publicity tools
Definition
methods of obtaining nonpersonal presentation of an organization, good, or service without direct cost, such as new releases, news conferences, and public service announcements
Term
rating
Definition
the percentage of households in a market that are tuned to a particular TV show or radio station
Term
reach
Definition
the number of different people or households exposed to an advertisements
Term
trade-oriented sales promotions
Definition
sales tools used to support a company's advertising and personal selling distributors, or retailers
Term
account management policies
Definition
specifies whom sales people should contact, what kinds of selling and customer service activities should be engaged in, and how these activities should be carried out
Term
adaptive selling
Definition
a need-satisfaction presentation format that involves adjusting the presentation to fit the selling situation, such as knowing when to offer solutions and when to ask for more information
Term
consultative selling
Definition
a need-satisfaction presentation format that focuses on problem identification, where the salesperson serves as an expert on problem recognition and resolution
Term
emotional intelligence
Definition
the ability to understand one's own emotions and the emotions of people with whom one interacts on a daily basis
Term
formula selling presentation
Definition
a presentation format that consists of information that must be provided in an accurate, thorough, and step-by-step manner to inform the prospect
Term
key account management
Definition
the practice of using team selling to focus on important customers so as to build mutually beneficial, long-term, cooperative relationships
Term
need-satisfaction presentation
Definition
a presentation format that emphasizes probing and listening by the salesperson to identify needs and interests of prospective buyers
Term
order getter
Definition
sells in a conventional sense and identifies prospective customers, provides customers with information, persuades customers to buy, closes sales, and follows up on customers' use of a product or service
Term
order taker
Definition
processes routine orders or reorders for products that were already sold by the company
Term
partnership selling
Definition
the practice whereby buyers and sellers combine their expertise and resources to create customized solutions, commit to joint planning, and share customer, competitive, and company information for their mutual benefit, and ultimately the customer
Term
personal selling
Definition
the two-way flow of communication between a buyer and seller, often in a face-to-face encounter, designed to influence a person's or group's purchase decision
Term
personal selling process
Definition
sales activities occurring before, during, and after the sale itself, consisting of six stages: (1) prospecting (2) preapproach (3) approach (4) presentation (5) close and (6) follow-up
Term
relationship selling
Definition
the practice of building ties to customers based on a salesperson's attention and commitment to customer needs over time
Term
sales management
Definition
planning the selling program and implementing and evaluating the personal selling effort of the firm
Term
sales plan
Definition
a statement describing what is to be achieved and where and how the selling effort of sales people is to be deployed
Term
sales quota
Definition
specific goals assigned to a salesperson, sales team, branch sales office, or sales district for a stated time period.
Term
salesforce automation
Definition
the use of computer, information, communication, and Internet technologies to make the sales function more effective and efficient
Term
stimulus-response presentation
Definition
a presentation format that assumes that given the appropriate stimulus by a salesperson, the prospect will buy
Term
team selling
Definition
the practice of using an entire team of professionals in selling to and servicing major customers
Term
workload method
Definition
a formula-based method for determining the size of a salesforce that integrates the number of customers served, call frequency, call length, and available selling time to arrive at a figure for the salesforce size
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