Term
|
Definition
- amount of money charged for a product or service
- only element in marketing mix that generates revenue; all other's represent cost
|
|
|
Term
| customer value-based pricing |
|
Definition
- Setting price based on buyer's perceptions of value rather than on the seller's costs
- opposite of cost-based pricing (value-based asseses customer needs, then sets price target and begins designing product
|
|
|
Term
|
Definition
- offering the right combination of quality and good service at a fair price
- ex: McDonald's offering a value menu
|
|
|
Term
|
Definition
- no temp. discounts, same price everyday
- ex: Walmart, Costco
|
|
|
Term
|
Definition
- charging higher prices on an everyday basis, but running frequent promotions
- ex: Kohl's and Macy's
|
|
|
Term
|
Definition
- rather than cutting prices to match competitors, they attatch value-added features and services to differentitate their offers and support higher prices
- ex: umbrellas in India coming with features like flashlights, sound system
|
|
|
Term
|
Definition
- setting prices based on the costs for producing, distributing, and selling the product plus a fair rate of return for its effort and risk
|
|
|
Term
|
Definition
- the drop in average per-unit production cost that comes with accumulated production experience
|
|
|
Term
| cost-plus pricing (markup) |
|
Definition
- adding a standard markup to the cost of the product
|
|
|
Term
| competition-based pricing |
|
Definition
- setting prices based on competitor's strategies, costs, prices, and market offerings
|
|
|
Term
|
Definition
| reverses the usual process of first designing a new product, determining its cost, and then asking "can we sell it for that" |
|
|
Term
|
Definition
- the market consists of many buyers and sellers trading in uniform commodity (wheat, copper, stocks)
- no single buyer or seller has much effect on the going market price
|
|
|
Term
|
Definition
- market consists of many buyers and sellers who trade over a range of prices rather than a single market place
- range of prices occurs b/c sellers can differentiate their offerings
|
|
|
Term
| oligopolistic competition |
|
Definition
- market consists of a few selles who are highly sensitive of each other's pricing strategies and marketing strategies
|
|
|
Term
|
Definition
| market consists of one seller |
|
|
Term
|
Definition
| the number of units the market will buy in a given time period at different prices that might be charged |
|
|
Term
|
Definition
| setting high initial prices to "skim" revenues layer by layer from the market |
|
|
Term
| market penetration pricing |
|
Definition
| setting a low initial price to penetrate the market quickly and deeply--to attract a large number of buyers quickly and win a large market share |
|
|
Term
|
Definition
| management must determine the price steps to set between the various product lines |
|
|
Term
|
Definition
offering to sell optional or accessory products along witht he main product
(ex: warranties) |
|
|
Term
|
Definition
companies that make products that must be used along with a main product
ex: printer ink sold with printer, video games developed for PS3/Xbox |
|
|
Term
|
Definition
company seeks a market for these by-products to help offset the costs of disposing of them and help makethe price of the main product more competitive
ex: Woodland Park Zoo sells animal poop |
|
|
Term
|
Definition
combining several products and offer the bundle at a reduced rate
ex: Fast-food meals; bundle TV, phone and internet |
|
|
Term
segmented pricing
(includes customer-segment, product-form, location-based, time-based) |
|
Definition
| company sells a prodct or service at 2 or more prices, even though the difference in prices is not based on differences in costs |
|
|
Term
|
Definition
different customers pay different prices for the same product or service
ex: Movie theaters charging matinee prices |
|
|
Term
|
Definition
| different versions of the product are priced differently, but not according to differences in costs |
|
|
Term
|
Definition
company charges different prices for different locations even though the cost of offering each location is the same
ex: Universities charging out-of-state tuition |
|
|
Term
|
Definition
a firm varies its price by season, month, the day, and even the hour
ex: resorts give weekend and seasonal discounts |
|
|
Term
|
Definition
sellers consider the psychology of prices, not simply the economics
ex: higher price perceived as higher quality |
|
|
Term
|
Definition
prices that buyers carry throught their minds and refer to when looking at a given product
ex: putting a store brand of cereal next to Kellog's cereal |
|
|
Term
|
Definition
companies will temporarily price their products below list price and sometimes even below cost to create buying excitement and urgency
adverse effects like consumers waiting only until promotions are going on (JC Penney) |
|
|
Term
|
Definition
| includes: fob-origin, uniformed-delivered, zone pricing, basing-point, and freight absorption pricing |
|
|
Term
|
Definition
adjusting prices to continually meet the characteristics and needs of the individual customers and situations
ex: online companies can constantly respond to price changes |
|
|
Term
|
Definition
| consists of the specific blend of advertising, public relations, personal selling, sales promotion, and direct-marketing tools that the company uses to persuasively communicate customer value and build customer relationships |
|
|
Term
|
Definition
| any paid form of nonpersonal presentation promotion of ideas, goods, or services by an identified sponsor |
|
|
Term
|
Definition
| short-term incentives to encourage the purchase or sale of a product or service |
|
|
Term
|
Definition
| personal presentation by the firm's sales force for the purpose of making sales and building customer relationships |
|
|
Term
|
Definition
| building good relations with the company's various publics by obtaining favorable publicity, building up a good coporate image, and handling or heading off unfavorable rumors, stories, or events |
|
|
Term
|
Definition
| direct connections with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationships |
|
|
Term
| The new marketing communications model |
|
Definition
| companies are focusing less on broadcasting and more on narrowcasting |
|
|
Term
| integrated marketing communications (IMC) |
|
Definition
| the company carefully integrates its many communications channels to deliver a clear, consistentm, and compelling message about the organization and its brands |
|
|
Term
|
Definition
| the party sending the message to another party |
|
|
Term
|
Definition
process of putting thought into symbolic form
ex: McDonald's using words, sounds, and visuals |
|
|
Term
|
Definition
set of symbols that the sender transmits
ex: the actual ad by McDonald's |
|
|
Term
|
Definition
communication channels through which the messages moves from the sender to the receiver
ex: specific tv stations McDonald's chooses |
|
|
Term
|
Definition
process by which the receiver assigns meaning to the symbols encoded by the sender
ex: consumer interprets McDonald's ad and the words/visuals in it |
|
|
Term
|
Definition
party receiving the message sent by another party
ex: the customer who watches the ad |
|
|
Term
|
Definition
reactions of the receiver after being exposed to the message
ex: customer likes McDonald's more after viewing ad |
|
|
Term
|
Definition
part of the receiver's response communicated back to the sender
ex: McDonald's research shows consumers were struck by the ad and remember it, or they write and complain about it |
|
|
Term
|
Definition
| unplanned static or distortion during the communication process, which results in the receiver getting a different message than the one the sender sent--the consumer is distracted while watching the commercial and misses the key points |
|
|
Term
| identifying the target audience |
|
Definition
| what will be said, how it will be said, when it will be said, whether it will be said, and who will say it |
|
|
Term
|
Definition
| the stages the consumers normally pass through on their way to making a purchase (awareness, knowledge, liking, preference, conviction, and purchase) |
|
|
Term
| personal communication channels |
|
Definition
| two or more people communicate directly with each other |
|
|
Term
|
Definition
| talking to friends, family, neighbors, reading reviews |
|
|
Term
|
Definition
| cultivating opinion leaders and getting them to spread information about a product or service to others in their communities |
|
|
Term
| non personal communication channels |
|
Definition
| media that carry messages without personal contact or feedback |
|
|
Term
|
Definition
| set the promotion budget at the level they think the company can afford (usually used by small businesses) |
|
|
Term
| percentage-of-sales method |
|
Definition
budget set at a certain percentage of current or forecasted sales
disadv: uses sales as the cause of promotion rather than as the result |
|
|
Term
| competitive-parity method |
|
Definition
| setting their promotion budget to match competitor's outlays |
|
|
Term
| objective-and-task method |
|
Definition
budget is set based on what it wants to accomplish with promotion (most logical budget method)
1) defining specific promotion objectives 2) determining the tasks needed to achieve these objectives 3) estimating the costs of performing these tasks |
|
|
Term
|
Definition
-can reach masses of geographically dispersed buyers
-consumers tend to view advertised products as more legit
-impersonal
-one way communication and expensive |
|
|
Term
|
Definition
-most effective tool in certain stages (buyer's preferences, convictions, and actions)
-buyer feels a need to listen and respond
-costs of sale force
-most expensive promotional tool |
|
|
Term
|
Definition
-coupons, contests, cents-off deals, premiums
-attract consumer attention, strong incentives to buy
-quick boost in sales
-not a great long-term strategy for customer value |
|
|
Term
|
Definition
-direct mail, catalogs, telemarketing
-immediate and customizable |
|
|
Term
|
Definition
| "pushing" the product through marketing channels to final customers; producer directs its marketing activities (primarily personal selling and trade promotion) toward channel members to induce them to carry the product and promote it to final customers (ex: John Deere letting Lowe's promote products) |
|
|
Term
|
Definition
producer directs its marketing activities toward final consumers to induce them to buy the product
ex: Unilever promotes Axe to young males, then consumers demand CVS/Walmart to sell it and then retailers demand it from the producer |
|
|
Term
CH. 15
4 important decisions when developing an advertising program |
|
Definition
1) setting advertising objectives
2) setting the advertising budget
3) developing advertising strategy (message decisions and media decisions)
4) evaluating advertising campaigns |
|
|
Term
|
Definition
a specific communication task to be accomplished with a specific target audience during a specific period of time
classified by primary purpose (inform, persuade, or remind) |
|
|
Term
|
Definition
used heavily when introducing a new-product category; objective is to build primary demand
ex: producers of DVDs had to build demand at first |
|
|
Term
|
Definition
more important as competition increases; company's objective is to build selective demand
ex: Once DVD players became popular, Sony persuaded consumers that their's had the best quality |
|
|
Term
|
Definition
| company directly or indirectly compares its brand with one or more other brands |
|
|
Term
|
Definition
important for mature products; it helps to maintain customer relationships and keep consumers thinking about the product
ex: Coke ads build and maintain relationships |
|
|
Term
|
Definition
| 2 major elements: creating advertising messages and selecting advertising media |
|
|
Term
|
Definition
| term representing merging of advertising and entertainment in an effort to break through the clutter and create new avenues for reaching consumers with more engaging messages |
|
|
Term
|
Definition
|
|
Term
|
Definition
| the approach, style, tone, words, and format used for executing an advertising message |
|
|
Term
|
Definition
this style shows one or more "typical" people using the product in a normal setting
ex: 5 hour energy using business people |
|
|
Term
|
Definition
this style shows how a product fits in with a particular lifestyle
ex: Polo living the active lifestyle |
|
|
Term
|
Definition
this style creates a fantasy around the product or its use
ex: Kia using the Sandman commercial |
|
|
Term
|
Definition
this style builds a mood or image around the product or service, such as beauty, love, intrigue, or serenity
ex: McDonald's "I'm lovin' it" |
|
|
Term
|
Definition
this style shows people or cartoon characters singing about the product
ex: Free credit report.com |
|
|
Term
|
Definition
this style creates a character that represents the product
ex: Geico gecko |
|
|
Term
|
Definition
this style shows the company's expertise in making the product
ex: Owner of Sam Adams showing how they brew beer |
|
|
Term
|
Definition
this style presents survey or scientific evidence that the brand is better or better liked than one or more other brands
ex: Crest using science to convince buyers |
|
|
Term
| testimonial evidence or endorsement |
|
Definition
this style features a highly believable or likable source endorsing the product
ex: Jared from Subway endorsing healthy eating |
|
|
Term
|
Definition
| 1) determining on reach, frequency, and impact 2) choosing among major media types 3) selecting specific media vehicles 4) choosing media timing |
|
|
Term
|
Definition
| a measure of the percentage of people in the target market who are exposed to the ad campaign during a given period of time (ex: 70 percent reach) |
|
|
Term
|
Definition
| the measure of how many times the average person in the target market is exposed to the message |
|
|
Term
| return on advertisement investment |
|
Definition
| net return on advertising investment divided by the costs of the advertising investment |
|
|
Term
|
Definition
| building good relations with the company's various publics by obtaining favorable publicity, building up a good corporate image, and handling or heading off unfavorable rumors, stories, and events |
|
|
Term
| press relations or press agency |
|
Definition
| creating a placing newsworthy information in the news media to attract attention to a person, product, or service |
|
|
Term
|
Definition
| publicizing specific products |
|
|
Term
|
Definition
| building and maintaining national or local community relationships |
|
|
Term
|
Definition
| building and maintaining relationships with legislators and government officials to influence legislation and regulation |
|
|
Term
CH. 16
sales force management |
|
Definition
| analyzing, planning, implementing, and controlling a sales force activities |
|
|
Term
| territorial sales force structure |
|
Definition
| each salesperson is assigned to an exclusive geographic area and sells the company's full line or products or service to all customers in that territory |
|
|
Term
| product sales force structure |
|
Definition
the sales force sells along product lines
ex: GE has sales people for turbines, fridges, air conditioners, healthcare equipment |
|
|
Term
| customer sales force structure |
|
Definition
organizing the sales force along customer or industry lines
ex: major accounts vs. regular accounts |
|
|
Term
| complex sales force structure |
|
Definition
sales people can be specialized by customer and territory; product and territory; product and customer; or territory , product, and customer
ex: Microsoft dedicated just to government customers |
|
|
Term
|
Definition
| using teams of people from sales, marketing, engineering, finance, technical, support, or even upper management to service large, complex accounts |
|
|
Term
|
Definition
| the merging of innovative sales practices with Web 2.0 technologies to improve sales force effectiveness and efficiency |
|
|
Term
|
Definition
| a standard that states the amount a salesperson should sell and how sales should be divided among the company's products |
|
|
Term
|
Definition
| the steps sales people follow when selling, which include prospecting and qualifying, pre approach, approach, presentation and demonstration, handling, objections, closing, and follow-up |
|
|
Term
|
Definition
| a salesperson or company identifies qualified potential customers |
|
|
Term
|
Definition
| a salesperson learns as much as possible about a prospective customer before making a sales call |
|
|
Term
|
Definition
| a salesperson learns as much as possible about a prospective customer before making a sales call |
|
|
Term
|
Definition
| a salesperson learns as much as possible about a prospective customer before making a sales call |
|
|
Term
|
Definition
| a salesperson meets the customer for the first time |
|
|
Term
|
Definition
| a salesperson tells the "value story" to the buyer, showing how the company's offer solves the customer's problems |
|
|
Term
|
Definition
| a salesperson seeks out, clarifies, and overcomes any customer objections to buying |
|
|
Term
|
Definition
| a salesperson asks the customer for an order |
|
|
Term
|
Definition
a salesperson follows up after the sale to ensure customer satisfaction and repeat business
also, goal is to reduce cognitive dissonance |
|
|
Term
|
Definition
| sales promotion tools used to boost short-term customer buying and involvement or enhance long-term customer relationships |
|
|
Term
|
Definition
| sales promotion tools used to persuade resellers to carry a brand, give it shelf space, promote it in advertising, and push it to consumers |
|
|
Term
|
Definition
| used to generate business leads, stimulate purchases, reward customers, and motivate sales people |
|
|
