An explanation of varied marketing terms

is the utilization of consumer-direct channels to attain and deliver goods and services to customers without needing marketing middlemen. "Direct Marketing" is the utilization of consumer-direct channels to reach and deliver goods and services to customers without using marketing middlemen.

Direct marketing suggests marketing to the consumers immediately without secondary press such as Tv set commercials. Direct Marketing includes the distribution of fliers, exhibiting signs or symptoms such as "weekly specials" inside the store. It is used to target customers who cannot avoid a good deal or great deal. Some Direct marketers use their customer database to contact them for special deals. They tailor their marketing offers and communications to the needs of individual potential buyers. Direct Marketing is normally employed by small to medium size companies that don't have the budget for expensive commercial.

There are extensive forms of direct marketing. The major types are as follows

Direct mail - the advertiser contact prospective customers by sending some form of advert through the email. Music and reserve clubs, mag clearing house, and credit card companies use direct mail.

Catalogue marketing - companies mail catalogues to consumers also to businesses or make them available at shops, and consumers make their purchase from the catalogues. For instance, Sears and Canadian Tire's catalogue shopping. Catalogue stores appear suitable to operating on the internet as they gets the systems and distribution experience necessary for such an executing.

Telemarketing - using the telephone and call centers to sell directly to potential customers and existing consumers. Companies use call centers for Inbound (receiving cell phone calls from customers) and outbound (initiating phone calls to potential customers and customers) telemarketing.

Direct marketing is a major progress area in retailing. Its advantages related particularly to its capability to lead the marketing effort to the people consumers who are likely to respond positively. In addition, it offers products and services in a way that is most convenient for the buyer.

2. _____ consist(s) of a collection of motivation tools, mostly short term, designed to stimulate quicker or greater purchase of particular products by consumers or the trade.

"Sales marketing promotions" consist of a assortment of incentive tools, generally short term, made to activate quicker or higher purchase of particular products or services by consumers or the trade.

Sales advertising as tools and techniques used to stimulate demand, encourage purchase or sales of something or services, compensation royal customers and get switchers from competition, . Advertising provides home elevators a product or promote a brand. Sale promotion offers reasons to buy now.

Here are a few types of sales special offers: Coupons shipped in the newspapers offering discount on your most liked espresso. An e-mail from Amazon. ca offers free delivery on the next purchase over $35. Sales promotion uses different mixture of promotional tools designed to stimulate customers to buy a product.

There are two categories of sales advertising tools

The consumer offers tools - aimed at consumers immediately such as; price discount or same price for the double the quantity of the product, discounts, cash refund from the maker, patronage rewards such as doubling the amount of air miles, sweepstakes such as is possible chance to win a vacation to Disneyland and free present, getting something from the purchase.

A trade special offers tools - This is utilized by the manufacturers to focus on the stores and wholesalers somewhat than consumers. Trade campaigns encourage the sellers to provide more shelf space to its own brand by providing a level discount or buy-back guarantees to the retailer if the product is not sold within a particular time period following the promotion. This is to ensure the vendors and wholesalers to get products on the shelf and visible to the consumers.

There are several factors to be considered when deciding which particular incentive to use; level of the incentive, conditions for involvement, timing and duration of the campaign, method of syndication, & budget for the sales-promotion.

3. Some companies arranged their advertising budget to achieve share-of-voice parity with rivals. That is called the _____ method.

Some companies placed their promotion budget to achieve share-of-voice parity with opponents. This is called the "Competitive Parity" Method.

After deciding company's advertising objectives, the next steps are setting up its advertising budget for every single product and market. "Competitive Parity" is one of the adverting budget environment methods used to ascertain campaign budget that complements rivals' outlays.

Company gather home elevators competitor marketing objective and activities to set their own marketing finances.

There are two arguments support this technique (Kotler, 13/e, chapter 17)

Competitors' budgets provide as a benchmarking of the industry.

Avoid promotion warfare by spending the particular competitors spend.

In reality, there is no evidence indicating all competitors are equal and competitive parity will discourage promotional conflict. Each company's dynamic, goals and goals will vary.

This is one of the many marketing strategies. It is very difficult to see whether this method of promotional budgeting actually maintain equivalent market show or avoid promotional warfare as company reputations, resources, opportunities, and objectives different much that competition advertising costs are hardly helpful information. For instance, if the total marketing advertising for the automotive industry is 500 millions, will advertising by Ford with 50 million us dollars will record 10% of the market share?

4. A program made to promote or protect a company's image or its individual products is named _____.

A program made to promote or protect a company's image or its specific products is called "public relation".

Public relations is a wide communications effort designed to build or maintain a favourable image for a business and favourable romantic relationship using its various general public - customers, potential clients, shareholders, employees, labour unions, the neighborhood community, and authorities.

The functions of pr are the following

Press relations management

Product publicity

Manage corporate interior and external communications


Provide counselling regarding general population issues, company positions to management

Unlike advertising, public relations needs not use the advertising to talk its subject matter. Good pr can be achieved in many ways. Take for example the handling of cyanide laced Tylenol case. Johnson and Johnson made a decision to make public announcement on the product recalled. J&J removed over 100 million bottles of contaminated Tylenol, Motrin, and Benadryl. J&J than substituted them with better designed tamper free product to gain public confident. Not merely is the merchandise safer, they gain significant good public relation and market share for handling of the recall. On the flip side, certain model of Ford cars have the tendency to "explode" when it's rear ended. It had been a poor engineering design. However, Ford adamantly refused to acknowledge its fault resulting in poor public relationship with consumers and loosing market share to its competitors. Proper handling of crisis by the general public relation can change a poor situation to positive.

Company can also gain good general public relationship in participating in community service situations, sponsoring athletic groups, funding the arts exhibitions or music program in neighborhood. Major companies often sponsor open public occasions or special programs on television as part of their public relations efforts. For instance, the Labatt hot-air balloon is a familiar example of a public relations device. Many large companies, such as Royal Loan provider of Canada and Air Canada, gain countrywide attention through their sponsorship of organizations and situations such as symphony orchestras and the Special Olympics. Culture organizations would not survive without major corporations' support.

5. _____ is/are any paid form of non-personal display and advertising of ideas, goods, or services by an determined sponsor.

"Advertising" is any paid form of non-personal presentation and campaign of ideas, goods, or services by an determined sponsor.

Advertising is a medium of mass communication that facilitates much larger scale of marketing.

Manufacturers supply information through advertising about services. Companies spend lots of money through TV, radio and magazines advertising to gain sales campaign benefits. Using the progress of internet, a new media is now open to reach huge section of the population. Advertising is at the scope of advertising which is one component in the marketing blend. It is getting popularity in the present highly competitive and consumer oriented marketing. All products old or new, consumable or durable, cheap or costly need advertising to promotion their sales. New communication techniques are actually used to make advertising attractive and agreeable. The core reason for advertising is to provide information, to appeal to customer attention, to produce awareness and lastly to influence the consumer buying behavior. Advertising is obviously needed in marketing but is similarly important and essential in communal, cultural and politics areas of our life.


1. Describe the eight major settings of communication in the communications mix.

Communications mix contains the explicit mixture of advertising, sales campaign, events and activities, pr and publicity, direct / interactive / word of mouth marketing, and personal offering that the company adopts to attain its advertising and marketing objectives

Advertising - A non-personal related presentation and ideas of good /service promotion that are paid by specific sponsor.

Sales campaign - Activities, including contests for salespeople, trade shows, in store shows, samples, payments, and coupons that are created to accomplish program /advertising campaign, and supplment personal selling of goods and services.

Events and experiences - Activities and programs that are sponsored by the company, specially designed to create customer / brand interactions and links.

Public relationships and promotion - A broad communications effort designed to build and keep maintaining a positive image for an organization and its products. Aswell a non-paid advertising presentation in regards to a product or corporation.

Direct marketing - A form of non-store retailing that uses non-personal multimedia to get hold of customers, for example, email, cell phone, fax, e-mail, or the web to acquire specific and potential customers' response or dialogue that, subsequently purchase products without going to shops.

Interactive marketing - Online activities and program designed to engage consumers.

Word of Mouth marketing - people-to-people dental, written, or electronic communications.

Personal selling - sales team representing the business; making personally connection with a number of potential purchasers, and building customer interactions.

2. Name four common criticisms of direct marketing.

There are few intense immediate marketers with sometimes questionable practices could create the unpleasant experience for the consumers. Such irritable experience could range between simple excesses of information to unfair routines, to completely deception and fraud. The four most popular criticisms of direct marketing will be the following

Irritation - as most of us dislike Television commercials that are too long and insistent. Especially bothersome are the dinner time or night time phone calls.

Unfairness - some immediate market taking unfair features of impulsive or fewer sophisticated buyers, Television set shopping shows and program-long "infomercial" offering smooth-talking hosts, elaborately staged demonstrations, says of drastic price reductions, "while they last" time limitations, and unequalled simple purchase to inflame purchasers who have low sales level of resistance.

Deception and fraud - some merchant design mailers and write copy designed to mislead clients. Sweepstake promoter Publishers Clearing House just lately paid $52M to settle accusations that its high pressure mailings confused or misled consumers, especially older people, into thinking that that they had gained prizes or would get if they bought the business's magazines. (THE BRAND NEW York Times, June 2001 - Sweepstakes Group Settles with State governments)

Invasion of privacy - One of the most bothersome issues facing marketers pertains to the behavior that threatens the customer's right to privacy. Today, companies are collecting information on customers from lots of options and storing the data on databases to be used for marketing purposes. Some consumers subject to businesses getting the information in the first place also to their use from it to sell them things. The point is that the technology is open to permit the integration of databases, making information gathering about the characteristics of consumers and their households, and to match the information with the info about purchases, credit-based card utilization, and other ingestion patterns accessible.

3. List and discuss three elements that clarify how many exposures, E, will create a level of audience recognition, A.

The major steps involved with selecting the exact multimedia vehicles to be used to promote are

Deciding on reach, consistency, and impact,

Selecting among major advertising types,

Choose specific media vehicles, and

Determine media timing

The effect of exposures on audience awareness is determined by three elements, i. e. reach, consistency and impact.

Reach (R) - is a way of measuring the ratio of households or concentrate on group who will come in contact with the advertising at least one time during a specific period of time. For example, if a media plan focuses on the roughly 2 million of the teenager between the years of 15-18 yrs. old, a reach of 50 means that 50% or 1 million of the prospective audience will come in contact with a few of the media vehicles in the media plan. Second, reach measures the build up of the audience over time. As the reach is obviously described for a certain time frame, the amount of audience members subjected to the mass media vehicles in a media plan increases over time.

Frequency (F) - is the measure of how many times a person in the target group is subjected to the concept in the advertising period. For instance, the advertising company may want a person in the target group to start to see the advertising at least 3 x in the advertising period to get the required impact.

Impact (I) - The qualitative value of a message. This is a way of measuring the way the advertising affects the targeted audience. In the event the audience cannot keep in mind the key message or the product being publicized, the impact is negligible. In case the audience can bear in mind or have the urge to buy or use the service being marketed, than the impact is very high. Sometime a catchy melody or word leaves a permanent image in the audience. For instance, for products that need to be exhibited, messages on Television set may contain the more impact than text messages on radio because Tv set ads use aesthetic and reasonable.

Therefore, final number of exposures (E) is "reach times the common frequency"

E = R x F, indicated as a share which is also calle "Gross Ranking Points (GRP)"

GRP is a measure the total "Ranking Items" during an advertising campaign. A Rating Point is one percent of the actual audience. So if 10% of the targeted group see or notice the commercial throughout a TV or chat show than the Score Things is 10. If, another show has 50% of the targeted group tuned in, than the GRP is 60 (10 plus 50).

Advertiser uses each one of these measuring element talked about to evaluate the success or failing of a marketing campaign.

4. What are the five major decisions, known as "the five M's" that marketing professionals must make in developing an marketing campaign?

During the growing process of an advertisement program, marketing executives must always begin by determining the prospective segment and consumer motives. The five - Ms decisions model could assist through this technique

Mission: This refers to the purpose/goals of advertising strategy. The main purposes are to keeping customer up to date through sales campaign, establishing brand awareness and loyalty, effect handling market competition, and expose services or services efficiently. Other decisions should be adjusted according to the decided advertising mission.

Money: This refers to the advertising budget allocation created by the business. Budget constraints are normal running a business and marketing and advertising can sometimes be ignored because of the lack of the immediate result. However, some resources should be assigned to build a brand and image of business to be able to grow. To avoid losing market share, making marketing a priority and having an acceptable budget financing is an integral area of the process.

Message: The created slogans, pictures, words, topics and so on that try to lure the client is the message of advertising; they will be the creative result of the advertising process. Attractive and meaningful messages give positive results, and the advertising becomes result-oriented. Furthermore, so long as the information are consistent with what the business stands for, any types of theme could be applied.

For example, the advertising note should be basic and easy to understand as the buyers are mainly children for product like chocolate and candies. The concept is important. The purchasers are mainly children among others of lower age ranges or for the benefit (pleasure and satisfaction) of more youthful generation.

Media: That is about deciding which multimedia will be utilized to carry the message. For instance, radio broadcast, Television set advertisements, mail drops, the internet, , telemarketing and face-to-face (personally) contact. Most press have measurable metrics to access their efficiency and the costs' efficiency. Selecting the right advertising could possibly be the key to a successful or failing of the advertising program.

For example, the media for consumer items like chocolate; advertising in it children cartoon channel, advertising in children literature or paper supplements, giving out the test to children at the grocery stores, etc.

Measure: the business must gauge the effects of the program / campaign. This is accomplished by tracking and measuring sales or trying to access interest through research. Often, it is difficult to regulate how much advertising actually influenced by the eye of customer vs. other external factors that performed a component.

For example, post advertising deal can be use as the measuring efficiency of chocolate advertising. New demand in new market segments or in new consumer age groups could also be use for the measuring of advertising campaign effectiveness.

In short, the 5Ms being able to help business to meet its tactical goals; by develop and keep maintaining best-practice demand development programs that provide sustainable and measurable results.

5. What are the seven design elements that effective Web sites feature? Define each of these.

Consumers shop online because it is a convenience, , save time, easy price comparability, good selection and the allure of purchase control. So long as there's web connection, consumer can certainly shop from everywhere. This constitutes business to build an online site that will lead traffic to their website, and by developing a positive experience that will create coming back customers. The seven design elements that effective Internet site feature is

Context - The structure and overall visible design of the website have to be clear rather than overly crowded, easy to read and manage. The color scheme needs to be in lines with for the marketing creative.

Commerce - A made safe website for commercial transactions.

Connection - the links that immediate customers away to other websites.

Communication - website allows two way marketing communications (business and customer). For instance, a live speak to business representatives.

Content - website details such as the text, graphics, sound, music, and/or videos that are in-corporate and demonstrated on the web page.

Community - website with build-in live talk or message boards to allow connection between customers.

Customization - the site makes it possible for customers to personalize the site, or tailor itself to suit the individual consumer. For instance, using various backdrop colors and images to symbolize different dialect speaking customers throughout the world.

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