Chapter 14

Question 1

promotion mix (or marketing communications mix)

Answer 1

the specific blend of promotion tools that the company uses to persuasively communicate customer value and build customer relationships

Question 2

advertising

Answer 2

any paid form of nonpersonal presentation and promotion of ideas, goods or services by an identified sponsor

Question 3

sales promotion

Answer 3

short-term incentives to encourage the purchase or sale of a product or service

Question 4

personal selling

Answer 4

personal presentation by the firm’s sales force for the purpose of making sales and building customer relationships

Question 5

public relations

Answer 5

building good realtions 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

Question 6

direct marketing

Answer 6

direct connections with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting customers relationships

Question 7

integrated marketing communications (IMC)

Answer 7

carefully integrating and coordinating the company’s many communications channels to deliver a clearn, consistant, and compelling message about the organization and its products

Question 8

buyer-readiness stages

Answer 8

the stages consumers normally pass through on their way to purchse, including awareness, knowledge, liking, perference, conviction and purchase

Question 9

personal communication channels

Answer 9

channels through which two or more people communicate directly with each other, including face to face, on the phone, through mail or email, or even through an internet chat

Question 10

word-of-mouth influence

Answer 10

personal communication about a product between target buyers and neighbors, friends, family members, or associates

Question 11

buzz marketing

Answer 11

cultivating opinion leaders and getting them to spread information about a product or service to others in their comunities

Question 12

nonpersonal communicaton channels

Answer 12

media that carry messages without personal contact or feedback, including major media, atmospheres, and events

Question 13

affordable method

Answer 13

setting the prmotion budget at the level management thinks the company can afford

Question 14

percentage-of-sales method

Answer 14

setting the promotion budget at a certain percentage of current or forecasted sales or as a percentage of teh unit sales price

Question 15

competitive-parity method

Answer 15

setting the promotion budget to match competitor’s outlays

Question 16

objective-and-task method

Answer 16

developing the promotion budget by:

1. defining specific objectives
2. determining the tasks that must be performed to acheive these objectives
3. estimating the costs of performing such tasks
   - the sum of these costs is the proposed promotion budget

Question 17

push strategy

Answer 17

a promotion strategy that calls for using the sales force and trade promotion to push the product through channels. The producer promotes the product to channel members who in turn promote it to final consumers

Question 18

pull strategy

Answer 18

a promotion strategy that calls for spending a lot on advertising and consumer promotion to induce final consumers to buy the product, creating a demand vacuum that “pulls” the product through the channel