Chapter 17 Packet Notes

Question 1

Marketing communications that inform and persuade consumers.

• Personal selling
• Advertising
• Sales promotional tools

Answer 1

Marketing Communications: Getting the Message Across

Question 2

• Source
• Message
• Channel
• Receiver

Answer 2

Communication Process Components

Question 3

The message sender.

Answer 3

Source

Question 4

The content being sent.

Answer 4

Message

Question 5

The path the message travels.

Answer 5

Channel

Question 6

The recipient of the message.

Answer 6

Receiver

Question 7

• Nonpersonal advertising- advertising
• Personal- personal selling
• Special forms- sales promotion

Answer 7

Forms of Promotional Communication

Question 8

A blend of nonpersonal, personal, and special forms for communication techniques aimed at a target market.

Answer 8

Promotional Mix

Question 9

• Geographical nature of target market
• Size of promotional budget
• Product’s characteristics

Answer 9

Makeup of the Promotional Mix is Determined by:

Question 10

• Allocating a percentage of sales.
• Deciding how much can be spared.
• Spending as much as the competition.
• Determining what it takes to do the job.

Answer 10

How Much Should a Small Business Spend on Promotion?

Question 11

• WTDJ: What it takes to do the job
• APS: A Percentage of sales
• WCS: What can be spared
• ACS: As much as the competition spends

Answer 11

Key Terms

Question 12

A sales presentation (promotion) delivered in a one-on-one manner.

Answer 12

Personal Selling

Question 13

• Product knowledge
• Well-prepared sales presentation
• Ability to build good will

Answer 13

Personal Selling Requires:

Question 14

• Successfully educate customers about the product’s advantages, uses, and limitations.
• Answer customer questions and counter customer objections.

Answer 14

Salespersons use Product Knowlege to:

Question 15

Personal selling becomes order-taking when a salesperson lacks ____ ______.

Answer 15

Product Knowledge

Question 16

A systematic process of continually looking for new customers.

Answer 16

Prospecting

Question 17

• Personal referrals
• Impersonal referrals
• Marketer-initiated contacts
• Customer-initiated contacts

Answer 17

Prospecting Techniques

Question 18

Salesperson initiates customer contact through referral by another party known to the customer.

Answer 18

Personal Referrals

Question 19

Information on potential new customers developed from public records and published sources.

Answer 19

Impersonal Referrals

Question 20

Market surveys are used to identify prospects.

Answer 20

Marketer-Initiated Contacts

Question 21

Potential customers are identified through their contacts with the firm.

Answer 21

Customer-Initiated Contacts

Question 22

• Nonfinancial rewards
• Financial rewards

Answer 22

Compensation for Salespeople

Question 23

• Personal recognition of employees by the firm.
  
  • Plaques and “Employee of the Month” awards
  • Providing “perks” to superior performers
• Personal satisfaction drawn by salespersons from doing their work well.

Answer 23

Nonfinancial Rewards

Question 24

• Commissions
• Straight salary
• Combination of commissions and salary

Answer 24

Financial Rewards

Question 25

* Compensation paid as precentage of sales productivity. * Strong sales motivator

Answer 25

Commissions

Question 26

Compensation paid regardless of sales made.

Answer 26

Straight Salary

Question 27

Balance of two compensation forms is adjusted to provide an increasing proportion of commission as salesperson gains experience.

Answer 27

Combination of Commissions and Salary

Question 28

The impersonal presentation of a business idea through mass media.

Answer 28

Advertising

Question 29

* To sell by informing, persuading, and reminding. * To serve as complement to product quality and efficient service. * To properly reflect changes in customer needs and preferences.

Answer 29

Advertising Objectives

Question 30

1. Product advertising 2. Institutional advertising

Answer 30

Two Basic Types of Advertising

Question 31

The presentation of a business idea designed to make potential customers aware of a specific product or service and create a desire for it.

Answer 31

Product Advertising

Question 32

The presentation fo information about a particular firm, designed to enhance the firm's image.

Answer 32

Institutional Advertising

Question 33

* Frequency of advertising * Where to advertise

Answer 33

Advertising Decision Factors

Question 34

With regularity for effectiveness and continuity. * Introduction of new uses for established products. * Introduction of new products and services.

Answer 34

Frequency of Advertising

Question 35

Appropriate media mix determined by: * Geographical area for target market coverage * Customer type targeted by advertising campaign * Advertising media customarily used by industry * Type of business * Advertising on the World Wide Web (Internet)

Answer 35

Where to Advertise

Question 36

* Sales promotion * Specialties * Trade show exhibits * Publicity * When to use sales promotion

Answer 36

Sales Promotional Tools

Question 37

An inclusive term for any promotional techniques that are neither personal selling or advertising. * Used in combination with personal selling and advertising.

Answer 37

Sales Promotion

Question 38

Tangible and enduring functional items of worth distributed personally to recipients that serve as reminders of the firm. * Pens, key chains, magnets, and clothing imprinted with the name, logo, or slogan of hte firm.

Answer 38

Specialties

Question 39

* Provide hands-on experience with products. * Are less costly than personal selling.

Answer 39

Trade Show Exhibits

Question 40

Information about a firm and its products or services that appears as a news item, usually free of charge. * Provides visibility for the firm * Requires regular contacts with the news media

Answer 40

Publicity

Question 41

* For manufacturers * For wholesalers * For retailers

Answer 41

When to use Sales Promotion

Question 42

To stimulate channel members- retailers and wholesalers- to market a firm's products.

Answer 42

For Manufacturers

Question 43

To induce retailers to buy inventories earlier than they normally would.

Answer 43

For Wholesalers

Question 44

To persuade customers to make a purchase.

Answer 44

For Retailers