impersonal, one-way mass communication about a product or organization that is paid for by a marketer
advertising`
a model that outlines the process for achieving promotional goals in terms of stages of consumer involvement with the message; the acronym stands for attention, interest, desire, and action
AIDA concept
a medium of communication?such as a voice, radio, or newspaper?for transmitting a message
channel
the process by which we exchange or share meaning through a common set of symbols
communication
one or more unique aspects of an organization that cause target consumers to patronize that firm rather than competitors
competitive advantage
interpretation of the language and symbols sent by the source through a channel
decoding
a category of promotional tactic based on a public relations or publicity model that gets customers talking about products or services
earned media
the conversion of a sender’s ideas and thoughts into a message, usually in the form of words or signs
encoding
the receiver’s response to a message
feedback
the careful coordination of all promotional messages for a product or a service to ensure the consistency of messages at every contact point at which a company meets the consumer
integrated marketing communications (IMC)
direct, face-to-face communication between two or more people
interpersonal communication
the communication of a concept or message to large audiences
mass communication
anything that interferes with, distorts, or slows down the transmission of information
noise
a new category of promotional tactic based on brands becoming publishers of their own content in order to maximize the brands’ value to customers
owned media
a category of promotional tactic based on the traditional advertising model, whereby a brand pays for media space
paid media
a purchase situation involving a personal, paid-for communication between two people in an attempt to influence each other
personal selling
communication by marketers that informs, persuades, and reminds potential buyers of a product in order to influence an opinion or elicit a response
promotion
the combination of promotional tools?including advertising, public relations, personal selling, sales promotion, and social media?used to reach the target market and fulfill the organization’s overall goals
promotional mix
a plan for the optimal use of the elements of promotion: advertising, public relations, personal selling, sales promotion, and social media
promotional strategy
the marketing function that evaluates public attitudes, identifies areas within the organization the public may be interested in, and executes a program of action to earn public understanding and acceptance
public relations
public information about a company, product, service, or issue appearing in the mass media as a news item
publicity
a marketing strategy that stimulates consumer demand to obtain product distribution
pull strategy
a marketing strategy that uses aggressive personal selling and trade advertising to convince a wholesaler or a retailer to carry and sell particular merchandise
push strategy
the person who decodes a message
receiver
marketing activities?other than personal selling, advertising, and public relations?that stimulate consumer buying and dealer effectiveness
sales promotion
the originator of the message in the communication process
sender
placing advertising messages in Web-based or video games to advertise or promote a product, service, organization, or issue
advergaming
a reason for a person to buy a product
advertising appeal
a series of related advertisements focusing on a common theme, slogan, and set of advertising appeals
advertising campaign
a specific communication task that a campaign should accomplish for a specified target audience during a specified period
advertising objective
a phenomenon in which spending for advertising and sales promotion increases sales or market share up to a certain level but then produces diminishing returns
advertising response function
a form of advertising in which an organization expresses its views on controversial issues or responds to media attacks
advocacy advertising
the ability of an advertising medium to reach a precisely defined market
audience selectivity
a form of advertising that compares two or more specifically named or shown competing brands on one or more specific attributes
comparative advertising
a form of advertising designed to influence demand for a specific brand
competitive advertising
promotion activities targeted to the ultimate consumer market
consumer sales promotion
a media scheduling strategy in which advertising is run steadily throughout the advertising period; used for products in the later stages of the product life cycle
continuous media schedule
an arrangement in which the manufacturer and the retailer split the costs of advertising the manufacturer’s brand
cooperative advertising
the cost associated with a consumer clicking on a display or banner ad
cost per click
the cost of reaching one member of the target market
cost per contact (cost per thousand or CPM)
a certificate that entitles consumers to an immediate price reduction when the product is purchased
coupon
a coordinated effort to handle all the effects of unfavorable publicity or another unexpected unfavorable event
crisis management
a media scheduling strategy in which ads are run heavily every other month or every two weeks to achieve a greater impact with an increased frequency and reach at those times
flighted media schedule
the number of times an individual is exposed to a given message during a specific period
frequency
a loyalty program in which loyal consumers are rewarded for making multiple purchases of a particular good or service
frequent buyer program
a thirty-minute or longer advertisement that looks more like a television talk show than a sales pitch
infomercial
a form of advertising designed to enhance a company’s image rather than promote a particular product
institutional advertising
a promotional program designed to build long-term, mutually beneficial relationships between a company and its key customers
loyalty marketing program
the combination of media to be used for a promotional campaign
media mix
the series of decisions advertisers make regarding the selection and use of media, allowing the marketer to optimally and cost-effectively communicate the message to the target audience
media planning
designation of the media, the specific publications or programs, and the insertion dates of advertising
media schedule
the channel used to convey a message to a target market
medium
a form of advertising designed to stimulate primary demand for a new product or product category
pioneering advertising
a promotional display set up at the retailer’s location to build traffic, advertise the product, or induce impulse buying
point of purchase (P-O-P) display
an extra item offered to the consumer, usually in exchange for some proof of purchase of the promoted product
premium
a form of advertising that touts the benefits of a specific good or service
product advertising
a public relations strategy that involves getting a product, service, or company name to appear in a movie, television show, radio program, magazine, newspaper, video game, video or audio clip, book, or commercial for another product; on the Internet; or at special events
product placement
the element in the promotional mix that evaluates public attitudes, identifies issues that may elicit public concern, and executes programs to gain public understanding and acceptance
public relations
an effort to capture media attention, often initiated through press releases that further a corporation’s public relations plans
publicity
a media scheduling strategy that uses continuous scheduling throughout the year coupled with a flighted schedule during the best sales periods
pulsing media schedule
money offered to channel intermediaries to encourage them to ?push? products?that is, to encourage other members of the channel to sell the products
push money
the number of target consumers exposed to a commercial at least once during a specific period, usually four weeks
reach
a cash refund given for the purchase of a product during a specific period
rebate
the marketing communication activities, other than advertising, personal selling, and public relations, in which a short-term incentive motivates consumers or members of the distribution channel to purchase a good or service immediately, either by lowering the price or by adding value
sales promotion
a promotional program that allows the consumer the opportunity to try a product or service for free
sampling
a media scheduling strategy that runs advertising only during times of the year when the product is most likely to be used
seasonal media schedule
a public relations strategy in which a company spends money to support an issue, cause, or event that is consistent with corporate objectives, such as improving brand awareness or enhancing corporate image
sponsorship
a price reduction offered by manufacturers to intermediaries such as wholesalers and retailers
trade allowance
promotion activities directed to members of the marketing channel, such as wholesalers and retailers
trade sales promotion
a desirable, exclusive, and believable advertising appeal selected as the theme for a campaign
unique selling proposition
developing product or service offerings customized for the appropriate customer segment and then pricing and communicating these offerings for the purpose of enhancing customer relationships
campaign management
a form of lead generation in which the salesperson approaches potential buyers without any prior knowledge of the prospects’ needs or financial status
cold calling
a philosophy under which the company customizes its product and service offering based on data generated through interactions between the customer and the company
customer-centric
the final step of the selling process, in which the salesperson ensures delivery schedules are met, goods or services perform as promised, and the buyers’ employees are properly trained to use the products
follow-up
the point at which a customer and a company representative exchange information and develop learning relationships
interaction
the process by which customer information is centralized and shared in order to enhance the relationship between customers and the organization
knowledge management
identification of those firms and people most likely to buy the seller’s offerings
lead generation (prospecting)
determination of a sales prospect’s (1) recognized need, (2) buying power, and (3) receptivity and accessibility
lead qualification
an informal process of collecting customer data through customer comments and feedback on product or service performance
learning
a determination of the customer’s specific needs and wants and the range of options the customer has for satisfying them
needs assessment
the process during which both the salesperson and the prospect offer special concessions in an attempt to arrive at a sales agreement
negotiation
a process of finding out about potential clients from friends, business contacts, coworkers, acquaintances, and fellow members in professional and civic organizations
networking
a touch point in stores or information kiosks that use software to enable customers to easily provide information about themselves without feeling violated
point-of-sale interactions
a process that describes the ?homework? that must be done by a salesperson before he or she contacts a prospect
preapproach
a statement of the salesperson’s sales goals, usually based on sales volume
quota
a recommendation to a salesperson from a customer or business associate
referral
a sales practice that involves building, maintaining, and enhancing interactions with customers in order to develop long-term satisfaction through mutually beneficial partnerships
relationship selling (consultative selling)
a formal meeting in which the salesperson presents a sales proposal to a prospective buyer
sales presentation
the set of steps a salesperson goes through in a particular organization to sell a particular product or service
sales process (sales cycle)
a formal written document or professional presentation that outlines how the salesperson’s product or service will meet or exceed the prospect’s needs
sales proposal
areas of a business where customers have contact with the company and data might be gathered
touch points
the quantity of a product that will be sold in the market at various prices for a specified period
demand
a situation in which consumer demand is sensitive to changes in price
elastic demand
consumers’ responsiveness or sensitivity to changes in price
elasticity of demand
a private electronic network that links a company with its suppliers and customers
extranet
a cost that does not change as output is increased or decreased
fixed cost
a situation in which an increase or a decrease in price will not significantly affect demand for the product
inelastic demand
a company’s product sales as a percentage of total sales for that industry
market share
charging a high price to help promote a high-quality image
prestige pricing
that which is given up in an exchange to acquire a good or service
price
revenue minus expenses
profit
the price charged to customers multiplied by the number of units sold
revenue
stocking well-known branded items at high prices in order to sell store brands at discounted prices
selling against the brand
a pricing objective that maintains existing prices or meets the competition’s prices
status quo pricing
the quantity of a product that will be offered to the market by a supplier at various prices for a specified period
supply
a cost that varies with changes in the level of output
variable cost
a technique for adjusting prices that uses complex mathematical software to profitably fill unused capacity by discounting early purchases, limiting early sales at these discounted prices, and overbooking capacity
yield management systems (YMS)
a price tactic that tries to get consumers into a store through false or misleading price advertising and then uses high-pressure selling to persuade consumers to buy more expensive merchandise
bait pricing
the general price level at which the company expects to sell the good or service
base price
a price tactic that charges freight from a given (basing) point, regardless of the city from which the goods are shipped
basing-point pricing
a price reduction offered to a consumer, an industrial user, or a marketing intermediary in return for prompt payment of a bill
cash discount
an extra fee paid by the consumer for violating the terms of the purchase agreement
consumer penalty
a deduction from list price that applies to the buyer’s total purchases made during a specific period
cumulative quantity discount
a price tactic in which different customers pay different prices for essentially the same merchandise bought in equal quantities
flexible pricing (variable pricing)
a price tactic that requires the buyer to absorb the freight costs from the shipping point (?free on board?)
FOB origin pricing
a price tactic in which the seller pays all or part of the actual freight charges and does not pass them on to the buyer
freight absorption pricing
a discount to wholesalers and retailers for performing channel functions
functional discount (trade discount)
costs that are shared in the manufacturing and marketing of several products in a product line
joint costs
a price tactic in which a product is sold near or even below cost in the hope that shoppers will buy other items once they are in the store
leader pricing (loss-leader pricing)
a deduction from list price that applies to a single order rather than to the total volume of orders placed during a certain period
noncumulative quantity discount
a price tactic that uses odd-numbered prices to connote bargains and even-numbered prices to imply quality
odd?even pricing (psychological pricing)
a pricing policy whereby a firm charges a relatively low price for a product initially as a way to reach the mass market
penetration pricing
the practice of charging a very low price for a product with the intent of driving competitors out of business or out of a market
predatory pricing
marketing two or more products in a single package for a special price
price bundling
an agreement between two or more firms on the price they will charge for a product
price fixing
the practice of offering a product line with several items at specific price points
price lining
a pricing policy whereby a firm charges a high introductory price, often coupled with heavy promotion
price skimming
a basic, long-term pricing framework that establishes the initial price for a product and the intended direction for price movements over the product life cycle
price strategy
setting prices for an entire line of products
product line pricing
a payment to a dealer for promoting the manufacturer’s products
promotional allowance (trade allowance)
a price reduction offered to buyers buying in multiple units or above a specified dollar amount
quantity discount
a cash refund given for the purchase of a product during a specific period
rebate
a price reduction for buying merchandise out of season
seasonal discount
a price tactic that offers all goods and services at the same price (or perhaps two or three prices)
single-price tactic
charging a price identical to or very close to the competition’s price
status quo pricing
a price tactic that charges two separate amounts to consume a single good or service
two-part pricing
reducing the bundle of services that comes with the basic product
unbundling
laws that prohibit wholesalers and retailers from selling below cost
unfair trade practice acts
a price tactic in which the seller pays the actual freight charges and bills every purchaser an identical, flat freight charge
uniform delivered pricing
setting the price at a level that seems to the customer to be a good price compared to the prices of other options
value-based pricing
a modification of uniform delivered pricing that divides the United States (or the total market) into segments or zones and charges a flat freight rate to all customers in a given zone
zone pricing
