History Module Flashcards
(30 cards)
Name the (3) Profit Maximising strategies a firm can pursue
1) Sell low, sell bitchin’ boatloads.
2) Sell distinctive goods with high margin, sell less of them.
3) Niche strategy, high interaction, high service, high loyalty (ITSCOMPLICATEDMILANO)
What are the 4Ps?
Product, Place, Price, Promotion.
What are the 7Ps?
[Product, Place, Price, Promotion], Public Relations, People, Politics.
What is Relationship Marketing?
Interdependence & cooperation between firms and outside actors.
What (5) shifts does Economic Development Produce?
(1) Shift in output & demand (new demands, more food in cities for example)
(2) Urbanisation (More concentration & new attitudes like make less at home, buy more)
3) Population Growth (More demand)
4) Technological Improvements (More variety, lower prices!)
5) Transport improves
What (2) effects can Economic Growth have on demand?
1) Extensive Growth
GDP rises, so more demand
2) Intensive Growth
GDP Per Capita rises, economic development ensues
What are the (3) phases model of relationships between INDUSTRIAL STRUCTURE and MARKETING STRATEGIES
1) Fragmentation Phase
- Pre railroad, isolated markets spring up. Served by companies with high prices and high margins.
2) Unification Phase
National markets emerge, oligopolistic competition increases volume and depresses margin.
3) Segmentation Phase
Characterised by more complex demand patterns. This divergence drives firms to adopt specific Value-Prices, together with high volume.
Explain the role of Cultural Forces in Marketing Strategies
Direct influence on: Expectations, Utility, Patterns of Consumption.
NB: Firms can have a role in shaping cultures (Coke & Christmas)
What was Pre-industrial distribution like?
DONKEY!
Community markets, and traders that traveled from swamp to swamp.
Shopkeepers bought in bulk and repackaged for final customers. Also, provided credit.
What (2) impacts did the creation of national markets have, and why?
1) Lowered cost of goods (Railroads that created an American market reduced logistics costs compared to caravans, and stimulated account rather than commission sales, which allowed wholesalers to form)
2) Introduced new products (Feasible range of producers increased due to transport)
What were the (3) shifts in Britain post-1950?
1) Fixed shops replaced temporary ones
2) Producers began to brand, package and advertise (challenging existing channel relationship)
3) Mass retail (chain stores) appeared (lower prices, cash payment)
What is the role of a Regional Retailer?
Buy large quantities for cash payments, which they break up and sell to retailers on credit terms.
How did Mass Retailers create economies of scale?
They CUT OUT WHOLESALERS,
They INCREASED STOCK TURNS
Define: Stock Turn
Number of times entire stock was sold (KPI)
What are the (3) main characteristics of a department store?
1) Variety of merchandise
2) Methods of selling
3) Style of management
NB: these existed before, but Department Stores consolidated these traits
What are the (2) main (Socio-Economic) drivers of department store adoption in mid-19th century Europe?
1) The spread of the industrial revolution (mass product availability),
2) Changes in consumer behavior (Urbanisation, less self-made goods, etc)
What were the (5) revolutions in Supermarket Retail?
1) Birth of the Chain Store,
2) Introduction of the Supermarket formula,
3) Internationalisation of the Supermarket,
4) Diffusion of computerisation (barcodes, inv.mgmt),
5) The rise of Walmart: formation of truly national US chains.
What (2) factors did Atlantic & Pacific (A&P) introduce into food distribution?
1) Standardisation
2) Scale
What were the (6) novel elements of A&P’s business model that differed from the grocer or general store that dominated before it?
1) Bypassing middlemen
2) Producing Private Lables
3) Signing agreements with manufacturers to better capture benefits of scale
4) Footraffic studies
5) Experiment with store layouts
6) Invest in quality - & inventory management
What advantages did Chain Stores (like A&P) have over competing formats?
- Network externalities, mostly from increased data
- Could therefore forecast demand & correspondingly plan inventory
- Centralised key processes like finance, marketing, and accounting
What did Cullen’s Super Store set out to do (Mission)?
Operate on low margin, and low expenses, making up through volume.
What did the term Americanization describe?
It was a countermeasure to soviet influence. The process of acculturation by immigrants to American customs values and products (hotdogs)…
Its foreign influences were a massive transfer of technology & management practices to Western Europe which staved off “Red” influence
Which tech innovations to retail occurred in the 1980s?
UPC or Universal Product Code. Allowed stores to keep more SKUs.
NB: this shifted competitive advantage back to national chains (Walmart)
What (3) advantages did Walmart leverage when entering the grocery retailing market?
1) Experience sharing between stores (data)
2) Network effects of multiple stores
3) State of the Art(i) distribution system
