Koofers

chapter 14 - Flashcards

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Class:MKT 320F - FOUNDATIONS OF MARKETING
Subject:Marketing
University:University of Texas - Austin
Term:Fall 2011
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promotion

communication information between the seller ad potential buyer or others in the channel to influence attitudes and behavior (involves telling target consumers the right Product is at the right Place at the right Price) 

it must fit with other variables of the marketing mix and reinforce the strategy differentiation and positioning. 

personal selling  
  • involves direct spoken communication between sellers and potential customers (immediate feedback, but can be expensive) 

mass selling
  • communicating with large numbers of potential customers at the same time (less flexible than personal selling)

    can be less expensive  

advertising
  •  any paid form of nonpersonal presentation of ideas, goods, or services by an identified sponsor (includes traditional media such as magazines, newspapers, radio, TV, sign, & direct mail as well as media) 

Generated by Koofers.com
publicity
  • any unpaid form of nonpersonal presentation of ideas, goods, or services (publicity people try to attract attention to the firm without having to pay media costs) 

sales promotion
  • promotion activities that stimulate interest, trial, or purchase by final customers or others in the channel

    - maybe be aimed at consumers, at intermediaries or at firm's own employees  

    they are there to produce immediate results 

sales managers
  • concerned with managing personal selling, building good distribution channels, and implementing Place policies (smaller companies..they’re sometimes marketing managers too)

    in smaller companies, they may also act as the marketing manager and be responsible for advertising and sales promotions  

advertising manager
  • manage their company’s mass-selling efforts in traditional and new media (may be in-house or choose outside adv agencies) 

    may handle publicity too 

Generated by Koofers.com
public relations
  • communication with noncustomers, including labor, public interest groups, stockholders, and the government 

sales promotion managers manage their company's sales promotion effort. In some companies, they have independent status and reports directly to the marketing manger.  
sales promotion activites vary so much that many firms use both inside and outside specialists 
marketing manager they must weight the pros and cons of the various promotion method and then devise an effective promotion blend, fitting in the various promotion methods and then device an effective promotion blend, fitting in the various departments and personalities and coordinating their efforts. 
integrated marketing communications
  • the intentional coordination of every

    communication from a firm to a target customer to convery a consistent and complete message 

Generated by Koofers.com
Aida
  • consists of 4 promotion jobs 1. to get attention 2. to hold interest 3.

    to arouse desire 4. to obtain action 

communication process a source trying to reach a receiver with a message    
source: the sender of a message    
receiver: a potential customer    
Generated by Koofers.com
noise any distraction that reduces the effectiveness of the communication process    
encoding
  • the source deciding what it wants to say and translating it into words or

    symbols that will have the same meaning to the receiver 

decoding the receiver translating the message, can be very tricky    
message channel the carrier of the message   
adveritisment on tV compared to advertising coming in the mail 
Generated by Koofers.com
Integrated Direct-Response Promotion is Very Targeted
  •   designed to prompt immediate response

  •   carefully selected mailing lists

  •   relies on a CRM (customer relationship management) database

  •   useful for business customers too

  •   must be careful not to spam 

The Customer May Initiate the Communication Process receiver (customer)searchmessage channelselect a topicsource’s message    
pulling
  • getting customers to ask intermediaries for the product

  •   promotion to final customers: sales promotion (coupons, contests, free samples)

    focuses on building interest and short-term sales 

pushing
  • a product through a channel): using normal promotion effort personal

    selling, advertising, and sales promotion to help sell the whole marketing mix to

    possible channel members emphasizes important of wholehearted coopration

  •   salespeople handle most of the important communication with wholesales and

    retailers 

Generated by Koofers.com
adoption curve
  • shows when different groups accept ideas (emphasizes relations among groups and shows individuals becoming “leaders”) 

innovators
  • he first to adopt (eager to try a new idea and willing to take risks; usually young & educated; tend to rely on impersonal & scientific information sources rather than sales people) 

early adopters
  • well respected by their peers and often are opinion leaders (younger, more mobile and creative than later adopters; fewer contacts outside their own social group or community; greatest contact with salespeople; word-of- mouth promotion) 

early majority
  • avoid risk and wait to consider a new idea after many early adopters have tried it (and like it); great deal of contact with mass media, salespeople, and early adopter opinion leaders 

    - average sized business fit in this category 

Generated by Koofers.com
late majority
  • cautious about new ideas (often older; strong social pressure from their own peer group may be needed); make little use of marketing sources of information such as mass media and salespeople 

laggards
  • prefer to do things the way they’ve been done in the past and are very suspicious of new ideas (tend to be older and less well-educated); cling to the status quo and think it’s the safe way; main source of information is fellow laggards 

primary demand deamand for the general product idea, not just for the company's own brand. video phone serve and smart appliances are good examples of product concepts where primary demand is just beginning to grow. there may be a few potential innovators during the introduction state, and personal selling can help find them. sales promotion may be target. 
selective demand demand for a company's own brand. The main job is to persuade customers to buy, keep buying the company's product. 
Generated by Koofers.com
sales decline stage
  • he total amount spent on promotion deceases as firms cut

    costs (some increase promotion to try to close the cycle) 

task method
  • basing the budget on the job to be done (helps set priorities so that

    the money you spend produces specific results 

the communication process its an interactive dialog between the company and its consumers 
factors that influence the effectiveness of the communication process monopoly, receiver's existing opinions and beliefs, expertise of source, social context of reference group, periphery issues 
Generated by Koofers.com
the 5 stages of the communications process identify the target audience
determine the communications objective 
designing the message 
selecting communications channels
establishing the communications budget 
many types of appeals can be used to design a message rational, emotional, negative, humor, moral 
personal channels customer feedback, efficient in two situations, expensive, risky infrequently purchased item 
non personal channels media, print broadcast, electronic 
" packaged environment "
Generated by Koofers.com
integrated marketing communications recognize value of a comprehensive plan 
multiple vehicle, multiple campaign 
communication companies vs. advertising
Generated by Koofers.com

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 promotion

communication information between the seller ad potential buyer or others in the channel to influence attitudes and behavior (involves telling target consumers the right Product is at the right Place at the right Price) 

it must fit with other variables of the marketing mix and reinforce the strategy differentiation and positioning. 

 personal selling 
  • involves direct spoken communication between sellers and potential customers (immediate feedback, but can be expensive) 

 mass selling
  • communicating with large numbers of potential customers at the same time (less flexible than personal selling)

    can be less expensive  

 advertising
  •  any paid form of nonpersonal presentation of ideas, goods, or services by an identified sponsor (includes traditional media such as magazines, newspapers, radio, TV, sign, & direct mail as well as media) 

 publicity
  • any unpaid form of nonpersonal presentation of ideas, goods, or services (publicity people try to attract attention to the firm without having to pay media costs) 

 sales promotion
  • promotion activities that stimulate interest, trial, or purchase by final customers or others in the channel

    - maybe be aimed at consumers, at intermediaries or at firm's own employees  

    they are there to produce immediate results 

 sales managers
  • concerned with managing personal selling, building good distribution channels, and implementing Place policies (smaller companies..they’re sometimes marketing managers too)

    in smaller companies, they may also act as the marketing manager and be responsible for advertising and sales promotions  

 advertising manager
  • manage their company’s mass-selling efforts in traditional and new media (may be in-house or choose outside adv agencies) 

    may handle publicity too 

 public relations
  • communication with noncustomers, including labor, public interest groups, stockholders, and the government 

 sales promotion managersmanage their company's sales promotion effort. In some companies, they have independent status and reports directly to the marketing manger.  
sales promotion activites vary so much that many firms use both inside and outside specialists 
 marketing managerthey must weight the pros and cons of the various promotion method and then devise an effective promotion blend, fitting in the various promotion methods and then device an effective promotion blend, fitting in the various departments and personalities and coordinating their efforts. 
 integrated marketing communications
  • the intentional coordination of every

    communication from a firm to a target customer to convery a consistent and complete message 

 Aida
  • consists of 4 promotion jobs 1. to get attention 2. to hold interest 3.

    to arouse desire 4. to obtain action 

 communication processa source trying to reach a receiver with a message    
 source:the sender of a message    
 receiver:a potential customer    
 noiseany distraction that reduces the effectiveness of the communication process    
 encoding
  • the source deciding what it wants to say and translating it into words or

    symbols that will have the same meaning to the receiver 

 decodingthe receiver translating the message, can be very tricky    
 message channelthe carrier of the message   
adveritisment on tV compared to advertising coming in the mail 
 Integrated Direct-Response Promotion is Very Targeted
  •   designed to prompt immediate response

  •   carefully selected mailing lists

  •   relies on a CRM (customer relationship management) database

  •   useful for business customers too

  •   must be careful not to spam 

 The Customer May Initiate the Communication Processreceiver (customer)searchmessage channelselect a topicsource’s message    
 pulling
  • getting customers to ask intermediaries for the product

  •   promotion to final customers: sales promotion (coupons, contests, free samples)

    focuses on building interest and short-term sales 

 pushing
  • a product through a channel): using normal promotion effort personal

    selling, advertising, and sales promotion to help sell the whole marketing mix to

    possible channel members emphasizes important of wholehearted coopration

  •   salespeople handle most of the important communication with wholesales and

    retailers 

 adoption curve
  • shows when different groups accept ideas (emphasizes relations among groups and shows individuals becoming “leaders”) 

 innovators
  • he first to adopt (eager to try a new idea and willing to take risks; usually young & educated; tend to rely on impersonal & scientific information sources rather than sales people) 

 early adopters
  • well respected by their peers and often are opinion leaders (younger, more mobile and creative than later adopters; fewer contacts outside their own social group or community; greatest contact with salespeople; word-of- mouth promotion) 

 early majority
  • avoid risk and wait to consider a new idea after many early adopters have tried it (and like it); great deal of contact with mass media, salespeople, and early adopter opinion leaders 

    - average sized business fit in this category 

 late majority
  • cautious about new ideas (often older; strong social pressure from their own peer group may be needed); make little use of marketing sources of information such as mass media and salespeople 

 laggards
  • prefer to do things the way they’ve been done in the past and are very suspicious of new ideas (tend to be older and less well-educated); cling to the status quo and think it’s the safe way; main source of information is fellow laggards 

 primary demanddeamand for the general product idea, not just for the company's own brand. video phone serve and smart appliances are good examples of product concepts where primary demand is just beginning to grow. there may be a few potential innovators during the introduction state, and personal selling can help find them. sales promotion may be target. 
 selective demanddemand for a company's own brand. The main job is to persuade customers to buy, keep buying the company's product. 
 sales decline stage
  • he total amount spent on promotion deceases as firms cut

    costs (some increase promotion to try to close the cycle) 

 task method
  • basing the budget on the job to be done (helps set priorities so that

    the money you spend produces specific results 

 the communication processits an interactive dialog between the company and its consumers 
 factors that influence the effectiveness of the communication processmonopoly, receiver's existing opinions and beliefs, expertise of source, social context of reference group, periphery issues 
 the 5 stages of the communications processidentify the target audience
determine the communications objective 
designing the message 
selecting communications channels
establishing the communications budget 
 many types of appeals can be used to design a messagerational, emotional, negative, humor, moral 
 personal channelscustomer feedback, efficient in two situations, expensive, risky infrequently purchased item 
 non personal channelsmedia, print broadcast, electronic 
" packaged environment "
 integrated marketing communicationsrecognize value of a comprehensive plan 
multiple vehicle, multiple campaign 
communication companies vs. advertising
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