Chapter 16 Flashcards
Define Communication
process of conveying message to others
5 Promotional Elements
Advertising Personal Selling Public Relations Sales Promotion Direct Marketing
Define Advertising
paid form of non-personal communication about an organization, good or service
Advantages and Disadvantages of Advertising
Advantages: efficient means of reaching large # of people
Disadvantages: cost, low feedback
Define Personal Selling
two-way flow of communication between buyer and seller (usually face to face)
Advantages and disadvantages of Personal Selling
Advantages: feedback, persuasive, select audience, communicate complex information
Disadvantages: expensive, messages differ per salesperson
Define Public Relations in terms of the promotional elements
non-personal, indirectly paid presentation of an organization, good or service
Advantages and Disadvantages of Public Relations
Advantages: credible in consumer’s mind
Disadvantages: difficult to get media cooperation
Define Sales Promotion
short-term inducement of value to arouse interest in buying gold or service
Advantages and Disadvantages of Sales Promotion
Advantages: effective at changing behaviour in short-run, flexible
Disadvantages: easily abused, lead to promotion wars, easily duplicated
Define Direct Marketing
uses direct communication with consumer to generate a response in form of an order, request for further info, or visit to retailer
Advantages and Disadvantages of Direct Marketing
Advantages: messages prepared quickly, relationship with customer
Disadvantages: declining customer response, expensive data management
4 Types of Promotional Budgeting
- Percentage of Sales Budgeting
- Competitive Parity Budgeting
- All-You-Can-Afford Budgeting
- Objective and Task Budgeting
Define percentage of sales budgeting
based on percentage of past or anticipated sales (in units or dollars)
Define Competitive Parity Budgeting
matching competitors absolute level of spending, or spending proportionate to market share
