Crash Course Flashcards
What are the key retailer marketing decisions that need to be addressed?
- Target Market: Identify the ideal customer base for the retail store.
- Product Assortment: Decide on the variety and quality of goods to offer.
- Store Atmosphere: Create a physical environment that attracts customers.
- Pricing Strategy: Set competitive prices based on market conditions.
- Promotion Strategy: Implement advertising, in-store displays, and events.
- Location Decision: Select a store location with high traffic or accessibility.
What are the characteristics of market leaders, and what tactics do they employ?
Characteristics: Largest market share, high visibility, and brand loyalty.
Tactics: Expand market demand, defend market share, and innovate.
Examples: Coca-Cola maintaining dominance by introducing healthier drink options.
What strategies do market challengers use to compete?
Tactics:
* Frontal Attack – Compete directly with pricing or product features.
* Flanking – Target weaknesses in the leader’s offerings.
* Encirclement – Diversify to capture niche markets.
Example: PepsiCo challenging Coca-Cola with Gatorade in sports drinks.
What is the importance of location decisions in retail success?
Determines accessibility, foot traffic, and proximity to the target market.
Options include:
1. High-traffic areas (e.g., malls).
2. Residential zones for niche services.
What are market followers, and how do they operate?
Types:
Cloner – Directly copy the leader.
Imitator – Adapt features with minor differences.
Adapter – Innovate based on the leader’s product.
Example: Telepizza imitates Domino’s in Spain.
What are the key advantages and tactics of market nichers?
Advantages: High profitability, customer loyalty, and lower competition.
Tactics: Specialize in underserved segments, offer unique customization.
Example: Rolex targeting the luxury watch niche.
Why is store atmosphere important for retail success?
Store design influences customer behavior and experience.
Layout options:
* Grid layout: Efficient for large product selections.
* Free flow layout: Promotes browsing and impulse purchases.
What are the 8 steps in developing effective communications?
- Identify the target audience: Who needs to receive the message?
- Determine communication objectives: Inform, persuade, or remind?
- Design the message: What to say and how to say it (content and format).
- Select communication channels: Personal (e.g., sales) or non-personal (e.g., media).
- Decide on the budget: Allocate resources for communication efforts.
- Choose the message source: Use credible endorsers or spokespeople.
- Measure results: Assess the effectiveness of the campaign.
- Make necessary adjustments: Refine the strategy based on results.
What are the promotional strategies for retailers?
- Sales promotions – Discounts, loyalty programs, and events.
- Advertising – Social media, local ads, and flyers.
- In-store promotions – Displays to promote seasonal items.
Why is a Situation Analysis critical in a marketing plan?
- Provides insights into market trends, customer needs, and competitor actions.
- Helps identify opportunities and threats.
- Example: SWOT analysis of a medium-sized supermarket’s location and product offerings.
Why is message design critical in IMC?
- The message must be clear, engaging, and relevant.
- Focus on AIDA (Awareness, Interest, Desire, Action).
What are personal and non-personal communication channels?
- Personal: Sales calls, word-of-mouth recommendations.
- Non-Personal: TV, radio, social media, and PR campaigns.
What are the key steps in setting a price?
- Define pricing objectives: E.g., survival, profit maximization, or market share growth.
- Analyze demand: Understand price elasticity and customer willingness to pay.
- Estimate costs: Determine fixed and variable costs.
- Examine competitors’ pricing: Benchmark against market leaders.
- Choose a pricing strategy: Penetration, skimming, or value-based.
- Set the final price: Consider psychological and promotional pricing.
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What is price elasticity, and why does it matter?
- Definition: Measures how demand changes with price variations.
- Elastic Demand: A small price change leads to significant demand change.
- Example: Luxury goods like designer bags often have inelastic demand.
What are the eight steps in developing effective communications?
- Identify the target audience.
- Set communication objectives (inform, persuade, remind).
- Design the message (content, structure, and format).
- Choose communication channels (personal or mass media).
- Establish the budget.
- Select the message source (spokesperson or brand voice).
- Measure communication results.
- Adjust strategies based on feedback.
What are the four major differences between goods and services?
- Intangibility – Services cannot be seen, touched, or tested before purchase.
- Inseparability – Services are produced and consumed simultaneously.
- Variability – Service quality depends on who delivers it and when.
- Perishability – Services cannot be stored for future use.
What is an example of designing an effective message?
Use the AIDA model:
* Attention: Catch the audience’s eye with visuals or catchy slogans.
* Interest: Highlight benefits or features.
* Desire: Use emotional appeals or testimonials.
* Action: Include a clear call to action (CTA).
* Example: “Switch to Green-Power Appliances and save 30% on energy bills today!”
How does inseparability affect service marketing?
Service quality is dependent on both the provider and the customer’s involvement.
What does variability mean in service delivery?
Service quality can vary due to:
* Staff skill differences.
* External factors (e.g., weather delays for outdoor services).
How does variability affect service marketing?
- Service quality depends on the provider’s mood, skills, and conditions.
- Solutions: Standardize processes, invest in employee training.
- Example: A restaurant ensuring consistent food quality across locations.
What is perishability, and how does it challenge service providers?
Services cannot be stored for future sales. If time passes, revenue is lost.
