Exam 4 Review

Question 1

Promotion Mix

Answer 1

the specific blend of advertising, public relations, personal selling, and direct marketing tools that the company uses to persuasively communicate customer value and build customer relationships

Question 2

New Marketing Communications Model

Answer 2

consumers are better informed, more communication, less mass marketing, changing communications technology

Question 3

Integrated Marketing Communications

Answer 3

the integration by the company of its communication channels to delicer a clear, consistent, and compelling message about the organization and its brands

Question 4

Rational Appeal

Answer 4

• cognitive- relates to the audience’s self-interest

Question 5

Emotional Appeal

Answer 5

•Affective- is an attempt to stir up positive or negative emotions to motivate a purchase

Question 6

Advertising Objective

Answer 6

a specific communication task to be accomplished with a specific target audience during a specific time

(informative, persuasive, reminder advertising)

Question 7

Advertising Strategy

Answer 7

the strategy by which the company accomplishes its advertising objectives and consists of: creating advertising messages, selecting advertising media

Question 8

Creating Advertising Message

Answer 8

Gain attention, Communicate well

Question 9

Message Strategy

Answer 9

the general message that will be communicated to consumers

Question 10

Creative Concept

Answer 10

the idea that will bring the message strategy to life and guide specific appeals to be used in an advertising campaign

Question 11

Message Execution

Answer 11

when an advertiser turns the big idea into an actual ad (tone/attention-getting words/format)

Deciding on reach-frequency-impact, selecting media Vehicles, deciding on media timing

Question 12

Narrowcasting

Answer 12

focuses the message on selected market segments lowers cost, targets more effectivly, engages customers better

Question 13

Return on advertising investment

Answer 13

the net return on advertising investment divided by the costs of advertising investment

Question 14

Communication Effects

Answer 14

indicate whether the ad and media are communicating the ad message well and should be tested before or after the ad runs

Question 15

Sales and Profit Effects

Answer 15

compare past sales and profits with past expenditures or through experiments

Question 16

Personal Selling

Answer 16

the interpersonal part of the promotion mix and can include: face-to-face, telephone, video or web conferenceing

Question 17

Sales Force Management

Answer 17

the analysis, planning, implementation, and control of sales force activities

Question 18

Sales Promotion

Answer 18

short-term incentives

tools are targeted toward final buyers (consumer promotions), retailers and wholesalers (trade promotions), business customers (business promotions), and members of the sales force (sales force promotions).

Question 19

Direct Marketing

Answer 19

marketing channel without intermediaries is an element of the promotion mix and fastest-growing form of marketing due to interactive and immediate convenience, ready acess to many products, comparitive information about companies, products, and competitors, low-cost, efficient, fast alternative to reach markets, flexible, access to buyers not reachable through other channels

Question 20

Online Marketing

Answer 20

banners interstitials and pop-ups rich media SEO and search-related ads, content sponsorships, viral marketing, social networks, and what makes for effective marketing

Question 21

Competitor Analysis Identifying Competitors

Answer 21

all firms make the same products or class of products, firms making products that supply the same serivce, firms competing for the same consumer dollars

Question 22

Porters 5 Competitive Forces- Competition in an industry, and thus potential profit and attractiveness

Answer 22

1. Current Sellers competing in the market typically, the strongest force
2. Threat of new competitors’ market entry (barriers to entry and expected response of current competitors)
3. Substitute products stealing market share (price attractiveness, quality comparison by buyers, and relative ease of substituting)
4. Competitive pressures resulting from supplier- seller relationships (supplier power, potential collaberative relationships)
5. competitive relationships resulting from seller- buyer relationships, unit analysisis firm-level buying (volume buying, switching costs, and potential backward integration threat)

Question 23

General Rule

Answer 23

greater collective forces means less collective profitability of industry firms & lower industry attractivness

Question 24

Overall Cost Leadership Strategy

Answer 24

when a company achieves the lowest production and distribution costs and allows it to lower its prices and gain market share.

Question 25

Differentiation Strategy

Answer 25

when a company concentrates on creating a highly differentiated product line and marketing program so it comes across as an industry class leader.

Question 26

Focus Strategy

Answer 26

when a company focuses its effort on serving few market segments well rather than going after the whole market.

Question 27

Operational Excellence

Answer 27

a company providing value by leading its industry in price and convenience by reducing costs and creating a lean and efficient value delivery system

Question 28

Customer Intimacy

Answer 28

refers to a company providing superior value by segmenting markets and tailoring products or services to match the needs of the targeted customers

Question 29

Product Leadership

Answer 29

refers to a company providing superior value by offering a continuous stream of leading-edge products or services. Product leaders are open to new ideas and solutions and bring them quickly to the market.

Question 30

Middle-of-the-road

Answer 30

The company tries to be good on all strategic counts, but ends up being not very good at anything.

Question 31

Market Leader

Answer 31

the firm with the largest market share and leads the market price changes, product innovations, distribution coverage, and promotion spending.

Question 32

Market Followers

Answer 32

are firms that want to hold onto their market share

Question 33

Market Nichers

Answer 33

firms that serve small market segments not being pursued by other firms

Question 34

Second Mover Advantage

Question 35

competitor centeredr market

Answer 35

one that spends most of its time tracking competitors’ moves and market shares and trying to find strategies to counter them.

Question 36

Customer Centered Company

Answer 36

focuses more on customer developments in designing its strategies.
Clearly, the customer-centered company is in a better position to identify new opportunities and set long-run strategies that make sense.

Question 37

Customer Databse CRM

Answer 37

an organized collection of comprehensive data about individual customers or prospects, including geographic, demographic, psychographic, and behavioral data.

Question 38

Forms of Direct Marketing

Answer 38

online marketing

face to face selling

direct mail

catalogs

digital technologies

kiosks

telemarketing

direct Response tv

Question 39

Corporate or Brand Websites

Answer 39

sites are designed to build customer goodwill and to supplement other channels, rather than to sell the company’s products directly.

Question 40

Marketing Websites

Answer 40

designed to engage consumers in interaction that will move them closer to a direct purchase or other marketing outcome.

Question 41

Spam Based Marketing

Answer 41

has produced consumer irritation and frustration. According to one research company, spam now accounts for almost 90 percent of all e-mail sent. E-mail marketers walk a fine line between adding value for consumers and being intrusive.
To address these concerns, most legitimate marketers now practice permission-based e-mail marketing, sending e-mail pitches only to customers who “opt in.”

Question 42

Personal Selling Process

Answer 42

1. Prospect/ Qualify
2. Pre-approach
3. approach
4. salespresentation
5. handle objections
6. close the sale
7. followup

Question 43

Opinion Leaders

Answer 43

people whose opinions are sought by others

Question 44

Buzz marketing

Answer 44

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

Question 45

Affordable Budget MEthod

Answer 45

Some firms set the promotion budget at the level they think the company can afford. Small businesses often use this method, reasoning that the company cannot spend more on advertising than it has.
Unfortunately, this method of setting budgets completely ignores the effects of promotion on sales. It tends to place advertising last among spending priorities, even in situations in which advertising is critical to the firm’s success.

Question 46

Percentage-of-Sales Method

Answer 46

Other companies use the percentage-of-sales method, setting their promotion budget at a certain percentage of current or forecasted sales. The percentage-of-sales is simple to use but it wrongly views sales as the cause of promotion rather than as the result.

Question 47

Competitive-Parity Method

Answer 47

Other companies use the competitive-parity method, setting their promotion budgets to match competitors’ outlays.
They monitor competitors’ advertising or get industry promotion spending estimates from publications or trade associations, and then set their budgets based on the industry average.
Unfortunately, there are no grounds for believing that the competition has a better idea of what the company should be spending on promotion than does the company itself.

Question 48

Objective-and-Task Method

Answer 48

The most logical budget-setting method is the objective-and-task method, whereby the company sets its promotion budget based on what it wants to accomplish with promotion.
The advantage of the objective-and-task method is that it forces management to spell out its assumptions about the relationship between dollars spent and promotion results. But it also is the most difficult method to use. Often, it is hard to figure out which specific tasks will achieve stated objectives.

Question 49

Deciding on Reach, Frequency, and Impact
Reach

Answer 49

a measure of the percentage of people in the target market who are exposed to the ad campaign during a given period of time. Frequency is a measure of how many times the average person in the target market is exposed to the message.
The advertiser must decide on the desired media impact—the qualitative value of message exposure through a given medium.
Typically, the advertiser wants to choose media that will engage consumers rather than simply reach them.

Question 50

Selecting Specific Media Vehicles.

Answer 50

The media planner now must choose the best media vehicles—specific options within each general media type.
Media planners must compute the cost per thousand persons reached by a vehicle.
The media planner must also consider the costs of producing ads for different media.
The media planner must balance media costs against several media effectiveness factors:
• Audience quality.
• Audience engagement.
• Editorial quality.

Question 51

Deciding on Media Timing

Answer 51

The advertiser must decide how to schedule the advertising over the course of a year.

Question 52

Consumer promotions:

Answer 52

Urge short-term customer buying or enhance customer brand involvement

Question 53

Trade promotions

Answer 53

persuade resellers to carry a brand, give it shelf space, promote it in advertising, and push it to consumers.
Manufacturers direct more sales promotion dollars toward retailers and wholesalers than to final consumers.

Question 54

Business promotions

Answer 54

are used to generate business leads, stimulate purchases, reward customers, and motivate salespeople.
One type of this promotion includes conventions and trade shows: Firms selling to the industry show their products at the trade show