Final Flashcards
Situation Analysis (5Cs):
Company
Context
Customers
Collaborators
Competitors
SWOT Analysis
An acronym describing an organization’s appraisal of its internal Strengths and Weaknesses and its external Opportunities and Threats.
Market Research
The process of answering “why” and “what now”
Primary Research
Your own research
Secondary Research
3rd party research, already done
Insights
A deep truth, relevant to your brand and audience, that if solved has the power to move the customer to a desired future state.
Segmentation
Grouping customers based on similar needs/Profiling each segment
Geographic Segmentation
Segmentation by location
Demographic Segmentation
Segmentation by demographics (Age, Gender, Race)
Psychographic Segmentation
Most important segmentation. Segmentation by beliefs (Interests, Values, Goals)
Behavioral Segmentation
Segmentation by purchasing habits, customer loyalty, brand interactions.
Targeting
Assess attractiveness of each segment/Select segments to target
Positioning
Define value proposition for target segment/Develop an action plan
Positioning Statement and components
A strategic document that communicates the unique value the brand offers to a particular target segment.
-For who/when/where
-Relative to whom
-What benefit
-Reasons to believe (Why and how)
Perceptual Maps
A positioning tool that visualizes how consumers perceive brands across key attributes
Marketing Channel
Consists of individuals and firms involved in the process of making a product or service available for use or consumption by consumers or industrial users.
Agent or Broker
An intermediary with legal authority to act on behalf of the manufacturer
Wholesaler
An intermediary who sells to other intermediaries, usually to retailers; term usually applies to consumer markets.
Transactional Functions
Buying or Selling products or services while also assuming business risks in the ownership of inventory.
Logistical Functions
Gathering, sorting, and dispersing products.
Facilitating Functions
Make a transaction easier for buyers through financing, grading, and providing information to customers and suppliers.
Direct Channel
The producer and the ultimate consumer deal directly with each other
Indirect Channel
Intermediaries are inserted between the producer and consumers and perform numerous channel functions.
Direct to Consumer Marketing Channels
Allow consumers to buy products by interacting with various print or electronic media without a face-to-face meeting with a salesperson.
Multichannel/Omnichannel Marketing
The blending of different communication and delivery channels that are mutually reinforcing in attracting, retaining, and building relationships with consumers who shop and buy in traditional intermediaries and online.
Vertical Marketing Systems
Professionally managed and centrally coordinated marketing channels designed to achieve channel economies and maximum marketing impact.
Corporate vertical marketing system
The combination of successive stages of production and distribution under a single ownership
Intensive Distribution
A level of distribution density whereby a firm tries to place its products and services in as many outlets as possible.
Exclusive Distribution
A level of distribution density whereby only one retailer in a specific geographic area carries the firm’s products.
Selective Distribution
A level of distribution density whereby a firm selects a few retailers in a specific geographic area to carry its products.
Buyer Requirements (four categories):
-Information
-Convenience
-Variety
-Pre- or postsale services
Channel Conflict
Arises when one channel member believes another channel member is engaged in behavior that prevents it from achieving its goals.
Vertical Marketing System
Professionally managed and centrally coordinated marketing channels designed to achieve channel economies and maximum marketing impact.
Vertical Conflict
Occurs between different levels in a marketing channel
Disintermediation
A source of channel conflict that occurs when a channel member bypasses another member and sells or buys products direct.
Horizontal Conflict
Occurs between intermediaries at the same level in a marketing channel
Channel Captain
A channel member that coordinates, directs, and supports other channel members.
Consumer Utilities:
Time Utility
Place Utility
Form Utility
Possession Utility
Form of Ownership
Distinguishes retail outlets based on whether independent retailers, corporate chains, or contractual systems own the outlet.
Level of Service
Describes the degree of service provided to the customer from three types of retailers: self-, limited-, and full-service.
Merchandise Line
Describes how many different types of products a store carries and in what assortment.
Independent Retailer
An independent business owned by an individual
Corporate Chain
Multiple outlets under common ownership
Franchising
An individual or firm contracts with a franchisor to set up a business or retail outlet.
Self Service
Requires that customers perform many functions during the purchase process.
Limited Service
Some services are provided but the rest are left up to the customer.
Full Service
Provide many services to their customers.
Depth of Product Line
The store carries a large assortment of each product item.
Breadth of Product Line
The variety of different product items a store carries.
Supercenter
Combines a typical merchandise store with a full-sized grocery store.
Automatic Vending
A form of nonstore retailing in which an electronic device or technology dispenses, without direct human intervention in the process, commodity items such as stamps, combs, soft-drinks, chocolates and potato chips.
Direct Mail and Catalogs
A form of non store retailing through advertising sent through the mail to existing customers and prospects
Television Home Shopping
A form of non store retailing through offering products for sale through cable and broadcast television
Online Retailing
A form of non-store retailing through allowing consumers to search for, evaluate, and order products through the Internet.
Telemarketing
Using the telephone to interact with and sell directly to consumers.
Direct Selling
Direct sales of products and services to consumers through personal interactions and demonstrations in their home or office.
Retail Positioning Matrix
A matrix that positions retail outlets on two dimensions: breadth of product line and value added, such as location, product reliability, or prestige.
Retailing Mix
The activities related to managing the store and the merchandise in the store, which include retail pricing, store location, retail communication, and merchandise.
Markup
How much should be added to the cost the retailer paid for a product to reach the final selling price.
Markdown
When the product does not sell at the original price and an adjustment is necessary.
Everyday Low Pricing (EDLP)
Emphasizes consistently low prices and eliminates most markdowns.
Off-Price Retailing
Selling brand-name merchandise at lower than regular prices.
Retail Image
The way in which the store is defined in the shopper’s mind, partly by its functional qualities and partly by an aura of psychological attributes.
Shopper Marketing
The use of displays, coupons, product samples, and other brand communications to influence shopping behavior in a store.
Category Management
An approach to managing the assortment of merchandise in which a manager is assigned the responsibility for selecting all products that consumers in a market segment might view as substitutes for each other, with the objective of maximizing sales and profits in the category.
Retail Life Cycle
The process of growth and decline that retail outlets, like products, experience, consisting of the early growth, accelerated development, maturity, and decline stages.
Marketplace
Buyers and sellers engage in face-to-face exchange relationships in a material environment characterized by physical facilities and mostly tangible objects.
Digital Marketspace
A digitally enabled environment characterized by face-to-screen exchange relationships and electronic images and offerings.
Interactive Marketing
Two-way buyer–seller electronic communication in which the buyer controls the kind and amount of information received from the seller.