11.9 Key Terms

Key Terms

Action: A desired response. 11.4

Advertising: Is defined as promoting a product or service through the use of paid announcements (Dictionary.com, n.d.). 11.2

Advertising Allowance: One type of trade allowance to advertise a seller’s products in local newspapers. 11.7

Affordable Method: What you think you can afford, is a method used often by small businesses. 11.6

AIDA Model: Attention, interest, desire, and action. 11.5

Closed-Ended Message: Draws a logical conclusion. Most messages are one sided, stressing only the positive aspects, similar to what you include on your résumé. 11.5

Consumer Sales Promotions: Consist of short-term incentives such as coupons, contests, games, rebates, and mail-in offers that supplement the advertising and sales efforts. 11.2

Competitive Parity: Companies try to keep their promotional spending comparable to the competitors’ spending level. 11.6

Contests: Sales promotions people enter or participate in to have a chance to win a prize. 11.7

Conventions: Meetings, with groups of professionals also provide a way for sellers to show potential customers different products. 11.7

Coupons: An immediate price reduction off an item. 11.7

Direct Mail: Provide popular alternatives for many marketers, although the volume of mail sent may drop significantly in a weak economy. 11.4

Decodes: Interprets, the message. 11.3

Direct Marketing: Involves the delivery of personalized and often interactive promotional materials to individual consumers via channels such as mail, catalogues, Internet, e-mail, telephone, and direct-response advertising. 11.2

Direct Response Advertising: An offer and a call to action. 11.4

Do Not Call Registry: Prevents organizations from calling any numbers registered with the Federal Trade Commission. 11.4

Encodes: Translates, a message so that it’s appropriate for the message channel. 11.3

Feedback: Tells the seller that you saw information and wanted to try the product. 11.3

Free Merchandise: A tool, television, or other product produced by the manufacturer, can also be used to get retailers to sell products to consumers. 11.7

Frequency: How often people are exposed. 11.3

Out-of-Home Advertising: Billboards and movable promotions. 11.1

Integrated Marketing Communications (IMC): An approach designed to deliver one consistent message to buyers through an organization’s promotions that may span all different types of media such as TV, radio, magazines, the Internet, mobile phones, professional selling, and social media. 11.1

Interference: Noise, can distort marketing messages. 11.3

Loyalty programs: Sales promotions designed to get repeat business. 11.7

Mobile Marketing: Say, from stores on your cell phone as you walk by them or via a mobile gaming device that allows you to connect to the web. 11.1

Objective and Task Method: A more rational and ideal approach whereby marketing managers first determine what they want to accomplish (objectives) with their communication. 11.6

Open-Ended Message: Allows the consumer to draw his or her own conclusion, such as a commercial for perfume or cologne. 11.5

Percentage of Last Year’s Sales: The simplest method for determining the promotion budget is often merely using a percentage of last year’s sales or the projected sales for the next year. This method does not take into account any changes in the market or unexpected circumstances. However, many firms use this method because it is simple and straightforward. 11.5

Perceptual Process: Is how a person decides what to pay attention to and how to interpret and remember different things, including information in advertising. 11.3

Point-of-Purchase Displays: Coupon machines placed next to products in stores, encourage consumers to buy a brand or product immediately. 11.7

Premium: Something you get either for free or for a small shipping and handling charge with your proof of purchase (sales receipt or part of package). 11.7

Product Demonstrations: Show a channel partner’s customers how products work and answer any questions they might have. 11.7

Professional Selling: Is an interactive, paid approach to marketing that involves a buyer and a seller. 11.2

Primary demand: Demand for a product category, such as orange juice. 11.5

Promotion or Communication Mix: Consists of advertising, sales promotions, direct marketing, public relations and publicity, sponsorships (events and experiences), social media and interactive marketing, and professional selling. 11.2

Public Relations (PR): Involves communication designed to help improve and promote an organization’s image and products. 11.2

Pull Strategy: A company promotes its products and services to final consumers to pull consumers into the stores or get the consumers asking for the product. 11.7

Push Money: A cash incentive from the manufacturer to push a particular item. 11.7

Push Strategy: Promoting a product to businesses (middlemen), such as wholesalers and retailers, who then push the product through the channel promoting it to final consumers. 11.7

Reach: Number of people exposed to the message. 11.3

Rebates: These are popular with both consumers and the manufacturers that provide them. When you get a rebate, you are refunded part (or all) of the purchase price of a product back after completing a form and sending it to the manufacturer with your proof of purchase. 11.7

Sales Contests: Are often held by manufacturers or vendors, provide incentives for salespeople to increase their sales. 11.7

Sample: This allows consumers to try a small amount of a product so that hopefully they will purchase it. 11.7

Selective Demand: Demand for its specific brand(s), such as Tropicana orange juice. 11.5

Sponsorships: Financial support for events, venues, or experiences and provide the opportunity to target specific groups. 11.2

Social Media: Online communication among interdependent and interconnected networks of organizations, people, and communities. 11.1

Trade Allowances: Give channel partner different incentives to push a product. For example, a manufacturer’s wholesalers, distributors, retailers and so forth. 11.7

Trade Promotions: In business-to-business marketing, sales promotions. 11.2

Training: Help the salespeople understand how the manufacturers’ products work and how consumers can be enticed to buy them. 11.7

Telemarketing: Direct marketing by phone. 11.4

Trade Promotions: Trade shows, conventions, event marketing, trade allowances, training, and special incentives given to retailers to market particular products and services, such as extra money, in-store displays, and prizes. 11.7

Trade Show: An event in which firms in a particular industry display and demonstrate their offerings to other organizations they hope will buy them. 11.7

Unique Selling Proposition (USP): Specific benefit consumers will remember. 11.5

Vehicle: The specific means within a medium to reach a selected target market. 11.4


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