Marketing test 4

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Marketing test 4
2014-04-13 20:27:38
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Marketing study cards
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  1. What is personal selling?
    An individual communication reaching one customer at a time
  2. What is Advertising as a method of promotion?
    Mass communication uses a mass media, a way to communicate with a lot of people at once
  3. What is publicity?
    This can be positive or negative because there is no control because it is not paid for, "news"
  4. What is Public relations?
    Paid promotion not using advertising , example paying Dr. Phil to plug your product on his show
  5. What is Viral Promotion?
    People that share your message without control, word of mouth can be on-line
  6. What is Sales Promotion?
    Everything else, all other types of promotion, example, premiums, gifts or special offer given in exchange for the purchase, contests or sweepstakes, coupons
  7. What is the inform goal of the promotion?
    Tell people about the product or business
  8. What is the persuade goal of the promotion?
    Usually buy the product
  9. What is the remind goal of a promotion?
    Keep the brand in people's minds
  10. What is the Economic impact of the promotion?
    Shifts demand curve outward, because it makes demand higher at every price
  11. How is the promotional mix determined?
    the mix decision is whether to use advertising more or personal selling more
  12. What is the geographic size of the market factor?
    Larger geographic market = more advertising
  13. What is the types of customer in the market factor?
    for business customer use more personal selling, for consumers use more advertising
  14. What is the number of customers in the market factors?
    more customers use more advertising
  15. What is the unit value, price, of the product factors?
    The more expensive the product the more personal selling
  16. What is the degree of customization within the Product Factors?
    The more customized, the more personal selling?
  17. What is the presale and postsale service of the product factors?
    The more service the more personal selling?
  18. What are the funds available?
    Advertising is cheaper per contact even though total cost of advertising could be high
  19. What is the push promotional strategies?
    To promote to next level in distribution chain, a producer promotes to retailer
  20. What is the Pull in the promotional strategy?
    The producer promotes to the consumer to get the consumer to ask the retailer to carry the product
  21. What is the promotional allocation?
    Deciding how much money to spend on promotion
  22. How is the percentage of sales used in promotions?
    Spend some percentage of sales on promotion, logic, if sales increase so does promotional spending, means you have great control over the amount spent on promotion, drawback is no strategy
  23. What is the Use of All available funds in the promotions?
    Any money not needed for anything else is spent on promotion, this will maximize your promotional allocation, only makes sense for new products or new companies
  24. What is the competitive parity in promotions?
    Copy the competition, problem is no control.
  25. What are the three steps of the Objective and Task of the promotion?
    • 1. Determine the objective of the promotion, example, promote to increase brand awarness by 20%
    • 2. Determine the task to reach the objective, example, running 20 TV ad spots would increase brand awareness by 20%
    • 3. set cost of task to equal promotional allocation
  26. What are the advantages and disadvantages of the objective and task?
    Advantage, very logicial, strategic, no waste so called zero base budget.  The Disadvantage, step two is very difficult to figure out
  27. What is the judgemental of the promotions?
    A guess
  28. What is the direct action of a product in advertising?
    Expect a quick response from the audience, immediate effect
  29. What is the indirect action of the product in advertising?
    Try to convince the audience over time to buy the product, comulative effect, use with higher risk purchases like a car.
  30. What is the patronage form of institutional advertising?
    the ad gives reasons for buying from the business, example "We're rolling back prices" ad campaign from walmart
  31. What is the public relations of institutional advertising?
    try to build goodwill by saying something good the company does, bragging
  32. What is the public service institutional advertising?
    ad itself is the benefit to the community, like Ford with the buckle up to get people to wear seatbelts, or breweries running ads, don't drink and drive
  33. What are National Advertising?
    Ad from the producer of the product
  34. What is the Retail or Local?
    Ad from the a retailer
  35. What is Primary demand?
    Also known as Pioneering advertising, it is an ad for a product not a brand like, got milk
  36. What is Secondary Demand?
    Also known as selective demand and differential advertising, it is an ad for a brand like an ad for rutter's milk
  37. What is Cooperative advertising?
    2 or more companies get together to run an ad
  38. What is vertical cooperative advertising?
    The companies are at different levels in the distribution channel, usually a producer and a retailer, like coca cola and walmart message is buy this  product a this store
  39. What is advertising allowance?
    Money given  to a retailer by a producer to advertise the product as being available at the store
  40. What is horizontal cooperative advertising?
    The companies are at the same level of the distribution channel, lake an ad for a shopping center paid for by the stores in the shopping center, or got milk, paid for by dairies
  41. What are the two rate cards for newspapers?
    A price list for national advertisers and another for retailers, which is cheaper
  42. Are newspaper ads, expensive or in expensive?
  43. How long is the lead time?
  44. What is a free standing insert in newspapers?
    Ads circulated like the supermarket ads int eh Sunday paper?
  45. Is Television expensive or in expensive?
  46. What do you get when you buy advertising from an advertiser?
    buy ad time from NBC, ESPN, MTV, probably a national distribution
  47. What is an advertising spot?
    ad time from a local station or cable company, a local distribution
  48. What is a clutter?
    lots of ads on TV which makes it hard for your ad to stand out
  49. What is zapping?
    people watch TV program but not the ads, DVR, channel surfing, netflix, leave room
  50. What is the lead time on television ads?
    Long, several days
  51. What is demonstration potential of television ads?
    can show how the product works
  52. what is censoring?
    In the US this is done by the stations and networks
  53. What is direct mail?
    junk mail, use the mail as an ad media, best targeting potential
  54. What is a list broker?
    A business that sells mailing lists
  55. What is the positives of radio?
    Inexpensive, short lead time, can be next day
  56. What is a drawback of radio advertising?
    Shrinking audience
  57. What are the positives of magazine advertising?
    Excellent color reproduction, good targeting
  58. What are the outdoor advertising ways?
    Billboards and transit
  59. What are the ways to advertise on the internet?
    Own website and ads on other websites
  60. What are ads on other websites?
    banner ads, ad on the page of another website, and popups, ads that opens as a new window
  61. What is a production cost of an ad?
    The cost of making an ad
  62. What are the media buying costs of an ad?
    costs of the media like airtime for TV or space in a magazine, or per click for internet
  63. What are the per exposure costs for advertising?
    The cost of the media per audience member, cost per thousand, or the cost of the ad divided by the number of thousands in the audience
  64. What is the reach of an ad?
    How many people are in the audience
  65. What is the frequency of an ad?
    How often the average audience member is exposed to the ad, so a frequency of 3.7 means the average person exposed to the ad was exposed 3.7 times
  66. What are ad agencies?
    a business that creates or produces ads
  67. What is the differential of an ad?
    Unique benefit of the brand, key to successful advertising is to stress the differential, could be tangible, physical like price or organic, or could be intangible, image like a lot of fashion advertising
  68. What is the three techniques to writing ads?
    • 1. formula
    • 2. testimonial
    • 3. vignette
  69. Define a formula technique for writing an ad
    Predicament + Solution = happiness
  70. Define a testimonial for writing an ad?
    have an outsider talk about your product, improves credibility, types of outsiders: celebrity, experts, satisfied customer
  71. What is a vignette technique for writing an ad
    Uses a series of ads to advance a plot line
  72. What is the POP sales promotion?
    Point of Purchase, ads or promotional material at the point of purchase, in store
  73. What is the premiums sales promotion?
    Gift or special offer for customers, like a toy in a box of cereal
  74. What is the coupon sales promotion?
    Price reduction at the time of purchase, cents off coupons
  75. What is the rebate sales promotion?
    Return of part of purchase price after purchase.
  76. What is the cost and details of cost of personal selling?
    It is a high cost per customer or per contact, because it is a personal communication so there is a labor cost
  77. What is the flexibility of personal selling?
    can make the presentation specific to the prospect
  78. What are the closes of personal selling?
    Can result directly in the purchase decision?
  79. What is the feedback in personal selling?
    the prospects, potential buyer, and customers respond to the sales person
  80. What is a driver salesperson?
    Delivery is part of the job, sales person actually has the product with them, capital meats
  81. What is the inside order taker?
    Sells at their employer's place of business, in store sales people
  82. What is an outside order taker?
    Sells at their customers place, traveling sales people
  83. What is a detail sales person?
    Also known as a missionary sales person or detailer, a sales person who doesn't sell, provide information about the product and promote the product but don't actually take orders
  84. What is the sales engineer?
    A sales person who cusomizes or designs the product for the constomer
  85. What is the creative sales person?
    Demonstrates the need for the product
  86. What is the Prospecting step of the sales process?
    looking for potential customers
  87. What is the qualifying of the sales process?
    deciding how likely the prospect is to buy, based on need, ability to pay, can they afford it, and authority to buy, B2B only, make sure you are talking to the correct person
  88. What is the approach in the sales process?
    Open communication, like Hi can I help you?
  89. What is the presentation and demonstration of the product in the sales process?
    Describing the product and show the product
  90. What is a canned presentation and demonstration?
    scripted and either read or memorized, used with new sales people and sales people who want a safety net, to provide consistent information, telemarketing
  91. What is the AIDA model?
    Awareness, Interest, Desire, and Action
  92. What to do if the competition is mentioned?
    Don't say negative things about the competition because it can hurt your credibility and could lead to an escalation, you also don't know the customer's prior relationship with the competition
  93. How do you handle objections?
    best way to handle is to turn it into a question in your ind and then answer the question, avoids an argument, you can win an argument with a customer but you won't get the sale
  94. Allowing the customer to handle the product.
    by handling the product the customer can visualize ownership
  95. What is the on secondary point technique for closing a sale?
    Give the prospect two choices, either choice is a sale, prospect stops thinking about the big decision, should I buy this and instead think about your choices
  96. What is the emotional close?
    Having an ethical issue with this, uses fear to close the sale
  97. What is the assume the order close?
    Act like the decision is already made.
  98. What is the standing room only close?
    It is an ethical close, use limited quantity or limited time to force a quick decision
  99. What is the motivation in sales management?
    try to get the sales people to sell more
  100. What is the contest motivation of sales?
    Have a prize or recognition for sales person who sells the most
  101. What is the sales quotas motivation?
    set minimum amount the sales person must sell to keep their job
  102. What is the compensation motivation of sales?
    Base pay on sales like commission
  103. What is the personality testing of recruitment?
    Actual multiple choice test and the answers are supposed to indicate a personality, looking for, aggressive outgoing, money motivated, honest
  104. What is the interviewing of the recruitment?
    If the person can sell themselves they can sell the product
  105. What is the evaluation of the recruitment?
    Call report, after the sales presentation, and work plan, before the sales presentation
  106. What is the territory structure of recruitment?
    Geographic, type of product, type of customer
  107. What is the commission compensation of recruitment?
    most common pay is based on quantity sold
  108. What is the salary compensation?
    pay is set per time period like $4,000 per month
  109. What is wage compensation?
    Pay is based on hours worked.
  110. What is combination compensation?
    Should be used if job involves non-selling duties.
  111. What is the drawing account compensation?
    A commission with a guaranteed minimum called the draw
  112. What is the bonus compensation?
    Lump sum for reaching some goal