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Chapter 15Chapter 16Chapter 17Chapter 18Company Names:CTE3806 Terms for Exam #4Test is Tues, Dec. 11 at 5:30 in DIF128Chapter 15 *Affordable budgeting method – retailer first sets a budget for every element of the retail mix except promotion and then allocates the leftover funds to a promotional budget*Brand – distinguishing name or symbol, such as a logo, the identifies the products or services offered by a seller and differentiates those products and services from those offered by competitors*brand promise – when you know what to expect; Publix is laid out a certain way and you know where to find milk and eggs; Chili’s menu is always the same*brand extension: Gap  GapKids and Old Navy*Brand associations – anything linked with the brand name in the customer’s memory*Brand awareness – a potential customer’s ability to recall the brand name is a particular type of retailer/product/service (know that Starbucks is a coffee place)*Brand image – set of associations organized around some meaningful themes*Brand loyalty – when a customer likes consistently buying a certain brand, they are reluctant to switch to other brands if their brand isn’t available*Break even analysis – the technique that evaluates the relationship between total revenue and total cost to determine profitability at various sales levels*Cooperative advertising – For national brands, the vendor/manufacturer pays to advertise, not the retailer (ex. Ralph Lauren commercial, products available at Macy’s)*Forms of Communication: ---DIRECT: communicates with the consumer to generate a response or transaction (mail, catalogs, email, mobile)---INDIRECT*Integrated marketing communication program – a program that integrates all of the communication elements to deliver a comprehensive, consistent message; can be hard for multichannel retailers, plan your communication (Store Design, Advertising, Web Site, Magalog)*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: ---ONLINE (websites, blogs, social media)---OFFLINE---INTERACTIVE---PASSIVE*Mobile marketing: m-commerce: communicatin with and even selling to customers through wireless handheld devices, such as cellular telephones and personal digital assistants12/11/12*Objective and Task method: a method for setting a promotion budget in which the retailer first establishes a set of communication objectives and then determines the necessary tasks and their costs*Percentage-of-sales method: a method for setting a promotion budget based on a fixed percentage of forecast sales*Pop-up store: stores in temporary locations that focus on new products of a limited group of products*Premiums: a type of sales promotion whereby and item is offered free of charge or at a bargain price to reward some type of behavior, such as buying, sampling, or testing*Public relations: a retail communications tool for 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 relationships with the media.*Social media: media content distributed through social interactions. Three major online facilitators or social media are YouTube, Facebook, and Twitter.*Special event: sales promotion program comprising a number of sales promotion techniques built around a seasonal, cultural, sporting, musical, or other event.*Top-of-mind awareness: memorable name, repeated exposure, event sponsorship, symbols (ex. Starbucks, Home Depot, Best Buy, Macy’s) The highest level of awareness of a retailer/brand, like when people are asked where to go for home improvement, they say Home Depot, which is more memorable than the name Lowe’s because it has “home” in it (p.402)Other Notes from class*know there are several ways of determining the communication budget: marginal analysis and objective-and-task method (see definitions above)*know the rule of thumb methods:--affordable budget method – determining the amount of money available after operating costs/profits are budgeted, drawback is that communication expenses don’t simulate sales/profits--percentage of sales method – a fixed percentage of forecasted sales (drawback is that it is based on past performance)--competitive party method (of your compeditor, Abercrombie, does a billboard, you do a billboard)promotion advantages disadvantagescoupons stimulate demand; allow for direct tracing of saleshave low redemption rates; have high costrebates stimulate demand; increase value perceptionare easily copied by competitors; may just advance future salespremiums (prize or award)build goodwill; increase perception of valueconsumers buy for premium, not product; have to be carefully managedsamples encourage trial; offer direct involvementhave high cost to the firm12/11/12POP displays provide high visibility; encourage brand trialcan be difficult to get a good location in the store; can be costly to the firmspecial events generate excitement and trafficcan be costly; can distract customers from purchasing during the eventpop-up stores generate customer interest; open up new markets and market segmentshave high cost; must hire store personnel; may take sales away from other company-owned storesChapter 16 *Autocratic leader - a manager who makes all decisions on his or her own and then announces them to all employees*Equal Employment Opportunity Commission EEOC – a federal commission that was established for the purpose of taking legal action against employers that violate the Title VII (7) pf the Civil Rights Act. Title VII (7) prohibits discrimination in company personnel practices.*Extrinsic reward – reward (such as money, promotion, or recognition) given to employees by the manager of the firm.*Incentive compensation plan – a compensation plan that rewards employees on the basis of their productivity*Intrinsic reward – nonmonetary rewards employees get for doing their jobs*Job analysis – identifying essential activities and determining the qualifications employees need to perform them effectively*Job application – a form the applicant completes about their employment history, previous compensation, reasons for leaving previous employment, education and training, personal health, and references*Job

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FSU CTE 3806 - Terms for Exam #4

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