Terms for Exam 4 Chapter 15 Affordable budgeting method sets the communication budget by determining what money is available after operating costs and profits are subtracted Brand distinguishing name or symbol such as a logo that identifies the products or services offered by a seller and differentiates those products and services from the offerings of competitors Brand associations anything linked to or connected with the brand name in a customer s memory For example some of the associations that consumers might have with Apple are its innovative products such as iPhone and Mac computers Brand awareness refers to a potential customer s ability to recognize or recall that the brand name is a particular type of retailer or product service Brand image the impression of a product held by real or potential consumers Brand loyalty consumers commitment to repurchase a brand instead of others in the same product category Break even analysis determines on the basis of a consideration of fixed and variable costs how much merchandise needs to be sold to achieve a break even zero profit Cooperative advertising a promotional program undertaken by a vendor and a retailer working together The vendor pays for part of the retailer s advertising but dictates some conditions For example Best Buy may pay for only half of its expenses for ads including Sony digital TVs In addition to lowering costs co op advertising enables a retailer to associate its name with well known national brands and use attractive artwork created by the national brands Integrated marketing communication program program that integrates all the communication elements to deliver a comprehensive consistent message to all customers over time across all elements of their retail mix and across all delivery channels For example the retailer s televised advertising campaign might attempt to build an image of exceptional customer service but the firms sales promotions might all emphasize low prices If communication methods aren t used consistently customers may become confused about the retailer s image and therefore not patronize the store 12 9 12 Marginal analysis based on the economic principle that firms should increase communication expenditures as long as each additional dollar spent generates more than a dollar of additional contribution Methods of Communication Mobile marketing marketing through wireless handheld devices such as cell phones Retailers success w mobile marketing rests on using fun or useful apps that are consistent with consumer attitudes Objective and Task method determines the budget required to undertake specific tasks to accomplish communication objectives To use this method the retailer first establishes a set of communication objectives and then determines the necessary tasks and their costs The total of all costs incurred to undertake the tasks is the communication budget Percentage of sales method sets the communication budget as a fixed percentage of forecast sales Retailers use this method to determine the communication budget by forecasting sales during the budget period and then applying a predetermined percentage to set the budget Pop up store temporary stores that exist only for a limited time and generally focus on a new product or limited group of products offered by a retailer 12 9 12 Premiums offers an item for free or at a bargain price to reward some type of behavior such as buying sampling or testing Such rewards build goodwill among customers who often perceive high value in them Public relations PR involves managing communications and relationships to achieve various objectives such as building and maintaining a positive image of the retailer handling or heading off unfavorable stories or events and maintaining positive relationships with the media Support goodwill Social media media content distributed through social interactions Three major online facilitators of social media are Facebook YouTube and Twitter Special event is a sales promotion program compromising a number of sales promotion techniques built around a seasonal cultural sporting musical or some other event Top of mind awareness the highest level of awareness which occurs when consumers mention a specific brand name first when they are asked about the type of retailer a merchandise category or a type of service For example Best Buy has a high top of mind awareness if most consumers respond Best Buy when asked about retailers that sell consumer electronics Chapter 16 Autocratic leader make all the decisions on their own and then announce them to the employees They use the authority of their position to tell employees what to do For example an autocratic store manager determines who will work in each area of the store when they ll take breaks and what days they ll have off Equal Employment Opportunity Commission allows employees to sue employers that violate the law Extrinsic reward rewards provided by either the employees amanger or the firm such as compensation promotion or recognition Incentive compensation plan reward employees on the basis of their productivity Many retailers now use incentives to motivate greater sales productivity by their employees 12 9 12 Intrinsic reward are rewards employees get personally from doing their job well For example salespeople often like to sell because they think its challenging and fun Of course they want to be paid but they also find it rewarding to help customers and make sales Job analysis identifies essential activities and is used to determine the qualifications of potential employees For example retail sales peoples responsibilities vary from company to company and department to department within a store Job application contain information about the applicants employment history previous compensation reasons for leabing his or her previous employment education and training personal health and references This information enables the manager to determine the applicants qualifications and it also provides information that is useful when the manager interviews the applicant Job description includes 1 activities the employee needs to perform and 2 the performance expectations expressed in quantitative terms The job description is a guideline for recruiting selecting training and eventually evaluating employees Labor costs costs of wages paid to workers during an accounting period on a certain basis plus payroll and taxes and benefits if necessary On the job training employees are