Term
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Definition
| All activities involved in selling goods or services directly to final consumers for their personal, nonbusiness use. |
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Term
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Definition
| A business whose sales come primarily from retailing |
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Term
| Major Store Retailer Types |
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Definition
Specialty stores
Department Stores
Supermarkets
Convenience Stores
Discount Stores
Off-price Retailers
Superstores |
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Term
| Wheel-of-retailing concept |
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Definition
| A concept that states that new types of retailers usually begin as low-margin, low-price, low-status operations but later evolve into higher-priced, higher-service operations, eventually becoming like the conventional retailers they replaced |
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Term
| Promotion Mix (Marketing Communication Mix) |
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Definition
| The specific blend of promotion tools that the company uses to persuasively communicate customer value and build customer relationships |
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Term
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Definition
| Paid form of non-personal presentation and promotion of ideas, goods, or services by a sponsor (e.g., broadcast, print, online, outdoor) |
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Term
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Definition
| Short-term incentives to encourage the purchase or sale of a product or service (e.g., discounts, coupons, displays, demonstrations) |
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Term
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Definition
| Personal presentation by sales force to make sales and build customer relationships (e.g., sales presentations, trade shows, incentive programs) |
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Term
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Definition
| Build relations with the community/consumers through publicity, managing rumors, stories, and events (e.g., press releases, sponsorships, special events) |
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Term
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Definition
| Direct connections with individual consumers to get behavioral response (through mail, telephone, direct-response television, e-mail, online; e.g., catalog, spam, kiosks) |
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Term
| Integrated Marketing Communications |
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Definition
| Carefully integrating and coordinating the company's many communications channels to deliver a clear, consistent, and compelling message about the organization and its products |
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Term
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Definition
| The stages consumers normally pass through on their way to purchase, including awareness, knowledge, liking, preference, conviction, and purchase. |
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Term
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Definition
| get Attention, hold Interest, arouse Desire, and obtain Action |
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Term
| Three Ways to Structure a Ad Message |
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Definition
1) Draw conclusion or leave it to the audience
2) Present the strongest argument first or last.
3) Present a one or two-sided argument. |
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Term
| Personal Communication Channels |
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Definition
| Channels through which two or more people communicate directly with each other, including face to face, on the phone, through mail or e-mail, or even through the internet "chat". |
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Term
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Definition
| Personal communication about a product between target buyers and neighbors, friends, family members, and associates |
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Term
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Definition
| Cultivating opinion leaders and getting them to spread information about a product or service to others in their communities |
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Term
| Nonpersonal Communication Channels |
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Definition
| Media that carry messages without personal contact or feedback, including major media, atmospheres, and events |
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Term
| Affordable Method - Promotion Budgets |
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Definition
| Setting the promotional budget at the level management thinks the company can afford |
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Term
| Percentage-of-Sales Method - Promotion Budgets |
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Definition
| Setting the promotion budget at a certain percentage of current or forecasted sales or as a percentage of the unit sales price. |
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Term
| Competitive-Parity Method - Promotional Budgets |
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Definition
| Setting the promotion budget to match competitor's outlays. |
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Term
| Objective-and-Task Method - Promotional Budgets |
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Definition
| Developing the promotion budget by (1) defining specific objectives, (2) determining the tasks that must be performed to achieve these objectives, and (3) estimating the costs of performing these tasks. The sum of these costs is the proposed promotion budget. |
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Term
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Definition
| 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 customers. |
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Term
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Definition
| 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. |
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Term
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Definition
| A specific communication task to be accomplished with a specific target audience during a specific period of time |
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Term
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Definition
| The strategy by which the company accomplishes its advertising objectives. It consists of two major elements: creating advertising messages and selecting advertising media |
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Term
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Definition
| A term that has come to represent the merging of advertising and entertainment in an effort to break through the clutter and create new avenues for reaching consumers with more engaging messages |
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Term
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Definition
| The compelling "big idea" that will bring the advertising message strategy to life in a distinctive and memorable way |
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Term
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Definition
| The approach, style, tone, words, and format used for executing an advertising message |
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Term
| List the different execution styles: |
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Definition
1) Slice of life
2) Lifestyle
3) Fantasty
4) Mood or image
5) Musical
6) Personality Symbol
7) Technical Expertise
8) Scientific Expertise
9) Testimonial Evidence or Endorsement |
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Term
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Definition
| Television, Internet, Newspapers, Direct mail, magazines, radio, outdoor |
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Term
| Return on Advertising Investment |
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Definition
| The net return on advertising investment divided by the cost of the advertising investment |
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Term
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Definition
| Building good relations 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. |
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Term
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Definition
| o Understand market, design a strategy, construct a marketing program, build relationships, capture value. |
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Term
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Definition
| Core competence is a skill - not a result of the skill. |
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Term
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Definition
o Time Bound
o Realistic
o Integrated
o Measurable
o Specific |
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Term
| SWOT - What are the axises |
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Definition
| o Top is: Positive/Negative, Left is: Internal External |
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Term
| Market Research Goals and Objectives |
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Definition
Objectives should focus on what information you need
Chuck Norris – You collect, process, analyze, and IMPLEMENT with ACTION |
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Term
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Definition
| need recognition, information search, evaluation of alternatives, purchase decision, postpurchase behavior |
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Term
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Definition
RIPRS
1) Identifiable
2) Substantial
3) Reachable
4) Responsive
5) Profitable |
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Term
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Definition
PICSP
Product, Services, Channels, People, or Image |
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Term
| Differences you want to promote |
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Definition
CAPSID
1. Important
2. Distinctive
a. Unique
3. Superior
4. Communicable
a.You should be able to display the difference and have customers notice the difference
5. Affordable
6. Profitable |
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Term
| 5 Box Positioning Statement |
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Definition
| o Current DO, Current Believe, Consumer Proposition, Desired Belief, Desired Do |
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Term
| What are the qualifications of a good brand name? |
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Definition
- Suggest benefits and qualities
- Easy to pronounce, recognize, and remember
- Distinctive
- Extendable
- Translatable for the global economy
- Capable of registration and legal protection |
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Term
| New Product Development Flow(?) |
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Definition
o Idea generation
o Idea screening
o Concept development and testing
Concept: Detailed version of the new-product idea stated in meaningful consumer terms.
Concept Testing: Testing concepts with a group of target consumers to see if they have appeal
o Marketing Strategy development
Target Market, Value Proposition, and Sales Goals
o Business Analysis
Analysis of costs, profits, and sales projections…does it meet company objectives?
o Product Development
Make it a physical product
o Test Marketing
Put the product in testing environments
o Commercialization
Introduce it into the market |
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Term
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Definition
o Producer Surplus, Consumer Surplus, Unrealized Surplus
* Variable cost, price paid, perceived value, "true" value |
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Term
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Definition
| = (Selling Price - Unit VC)/ Selling Price |
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Term
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Definition
| Unit Variable Cost / (1-%margin) |
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Term
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Definition
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Term
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Definition
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Term
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Definition
| = (FC + Profit) / (Price-VC) |
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Term
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Definition
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Term
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Definition
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o Market Skimming
§ Innovators/First movers – High Prices
o Market penetration
§ Low prices, designed to keep out competition
o Product-Line Pricing
§ Setting prices across a product line
o Optional Product Pricing
§ Start with basic product, charge for extra options
o Captive Product Pricing
§ Low price for original, charge lots to use it…Razors, video games consoles, printers, etc.)
o Product Bundle Pricing
§ Cheaper per item to buy whole package. Adobe CS5
o Segmented Pricing
§ Selling same product at multiple prices
o Psychological Pricing
§ Price can be a signal for quality
§ Reference prices
§ Odd pricing
§ “Sale” signs
o Promotional Pricing
§ Coupons, special events, rebates, discounts
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Term
| Brand Development Strategy |
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Definition
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Product
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Existing
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New
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Brand
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Existing
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Line Extension
Koby Bryant line for Nike shoes
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Brand Extension
Nike started with shoes, moved to shirts and everything else
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New
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Multibrand
Jordan shoes, they are Nike, but not the same brand
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New Brand
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Term
| Product Market Expansion Grid |
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Definition
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Existing Products
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New Products
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Existing Markets
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Market penetration (lower the MSRP price, advertising, etc.) Work the 4Ps. New colors for Crocs
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Product development
Creating new products and new extensions (iCloud)
Crocs create athletic shoes (new styles)
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New Markets
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Market development
How do we get consumers to
Use our product in different ways?
CROCS creates a kids shoe line, old people line.
DEMOGRAPHIC AND GEOGRPAHICS
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Diversification
(Crocs purchased a company which they use to sell hockey gloves using the crocs material)
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Term
| What to do when a competitor changes price |
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Definition
Reduce price
Raise perceived value
Improve quality (increase price maybe)
Launch low-price “fighting brand” |
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Term
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Definition
Sender --> Encoding --> Message --> Decoding --> Receiver --> Response --> Feedback --> Sender
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Term
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Definition
| % of people who have seen the ad |
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Term
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Definition
| # of times a person sees the ad |
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Term
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Definition
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Term
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Definition
| Qualitative Value - How will my ad work in Vogue vs. The Economist? |
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