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.
Choiceboards
An interactive, digitally enabled system that allows individual customers to design their own products and services by answering a few questions and choosing from a menu of product or service attributes (or components), prices, and delivery options.
Personalization
The consumer-initiated practice of generating content on a marketer’s website that is custom tailored to an individual’s specific needs and preferences.
Permission Marketing
The solicitation of a consumer’s consent (called “opt-in”) to receive e-mail and advertising based on personal data supplied by the consumer.
Customer Experience
The sum total of interactions that a customer has with a company’s website, from the initial look at a home page through the entire purchase decision process.
Eight-Second Rule
A view that customers will abandon their efforts to enter and navigate a website if download time exceeds eight seconds.
Customerization
The growing practice of not only customizing a product or service but also personalizing the marketing and overall shopping and buying interaction for each customer.
Viral Marketing
A digitally enabled promotional strategy that encourages individuals to forward marketer-initiated messages to others via e-mail, social networking websites, and blogs.
Cookies
Computer files that a marketer can download onto the computer and mobile phone of an online shopper who visits the marketer’s website.
Behavioral Targeting
Uses information provided by cookies to direct online advertising from marketers to those online shoppers whose behavioral profiles suggest they would be interested in such advertising.
Social Commerce
The use of social networks for browsing and buying.
Cross-Channel Consumers
An online consumer who shops online but buys offline, or shops offline but buys online.
Showrooming
The practice of examining products in a store and then buying them online for a cheaper price.
Webrooming
The practice of examining products online and then buying them in a store.
Marketing Attribution
The practice and techniques used to credit or value a particular channel and consumer touchpoint.
Promotional Mix definition and components
The combination of one or more communication tools used to: (1) inform prospective buyers about the benefits of the product, (2) persuade them to try it, and (3) remind them later about the benefits they enjoyed by using the product.
Advertising
Sales Promotion
Public Relations
Direct Marketing
Personal Selling
Advertising
Any paid form of nonpersonal communication about an organization, product, service, or idea by an identified sponsor.
Personal Selling
The two-way flow of communication between a buyer and seller, often in a face-to-face encounter, designed to influence a person’s or group’s purchase decision.
Public Relations
A form of communication management that seeks to influence the feelings, opinions, or beliefs held by customers, prospective customers, stockholders, suppliers, employees, and other publics about a company and its products or services.
Sales Promotion
A short-term inducement of value offered to arouse interest in buying a product or service.
Direct Marketing
A promotional alternative that uses direct communication with consumers to generate a response in the form of an order, a request for further information, or a visit to a retail outlet.
Product Life Cycle and Promotion Strategy
Introduction > Growth > Maturity > Decline
Inform > persuade > Remind > Phase out
Product Characteristics
Complexity, Risk, and Ancillary Services (Degree of service or support required after the sale)
Stages of the Consumer Journey:
-Prepurchase stage
-Purchase Stage
-Postpurchase stage
Push Strategy
Directing the promotional mix to channel members to gain their cooperation in ordering and stocking the product.
Pull Strategy
Directing the promotional mix at ultimate consumers to encourage them to ask the retailer for a product.
Promotion Decision Process
Process divided into developing, executing. and assessing the promotion program
Percentage of Sales Budgeting
Allocating funds to promotion as a percentage of past or anticipated sales, in terms of either dollars or units sold.
Competitive Parity Budgeting
Allocating funds to promotion by matching the competitor’s absolute level of spending or the proportion per point of market share. Also called matching competitors or share of market.
All-You-Can-Afford Budgeting
Allocating funds to promotion only after all other budget items are covered.
Objective and Task Budgeting
Allocating funds to promotion whereby the company: (1) determines its promotion objectives; (2) outlines the tasks to accomplish those objectives; and (3) determines the promotion cost of performing those tasks.
Direct Orders
The result of direct marketing offers that contain all the information necessary for a prospective buyer to make a decision to purchase and complete the transaction.
Lead Generation
The result of a direct marketing offer designed to generate interest in a product or service and a request for additional information.
Traffic Generation
The outcome of a direct marketing offer designed to motivate people to visit a business.
Product Advertising and forms
Advertisements that focus on selling a product or service and which take three forms: (1) pioneering (or informational), (2) competitive (or persuasive), and (3) reminder.
Institutional Advertisements
Advertisements designed to build goodwill or an image for an organization rather than promote a specific product or service.
Message Content
Basic information such as the product name, benefits, features, and price presented in a way that tries to attract attention and encourage purchase or use.
Message Creativity
The originality and appropriateness of the message used to inform and persuade, including visual or auditory presentation.
Message Appeals
Something that provides a reason for the consumer to act.
Reach
The number of different people or households exposed to an advertisement.
Frequency
The average number of times a person in the target audience is exposed to a message or an advertisement.
Gross Rating Points (GRPs)
A reference number used by advertisers that is obtained by multiplying reach (expressed as a percentage of the total market) by frequency.
Cost Per Thousand (CPM)
The cost of reaching 1,000 individuals or households with the advertising message in a given medium (M is the Roman numeral for 1,000).
Media Alternatives Pros and Cons
Depends on media (Ex. Television, Magazines, Radio)
Infomercials
Program-length (30-minute) advertisements that take an educational approach to communication with potential customers.
Rich Media
Interactive online ads that have drop-down menus, built-in games or search engines to engage viewers.
Mobile Marketing
The broad set of interactive messaging options that enable organizations to communicate and engage with consumers through any mobile device.
Buyer Turnover
How often new buyers enter the market to buy the product
Purchase Frequency
How often a product is purchased.
Forgetting Rate
The speed with which buyers forget the brand if advertising is not seen.
Pretests
Tests conducted before an advertisement is placed in any medium to determine whether it communicates the intended message or to select among alternative versions of the advertisement.
Full-Service Agency
An advertising agency that provides the most complete range of services, including marketing research, media selection, copy development, artwork, and production.
Limited-Service Agency
An advertising agency that specializes in one aspect of the advertising process, such as providing creative services to develop the advertising copy, buying previously unpurchased media space, or providing Internet services.
In-House Agency
Consists of the company’s own advertising staff, who may provide full services or a limited range of services.
Posttests
Tests conducted after an advertisement has been shown to the target audience to determine whether it accomplished its intended purpose.
Consumer-Oriented Sales Promotions
Sales tools used to support a company’s advertising and personal selling directed to ultimate consumers. Also called consumer promotions.
Sales Promotion Pros and Cons
Depends on sales promotion (Ex. Coupons, Sweepstakes, Loyalty Program)
Trade-Oriented Sales Promotions
Sales tools used to support a company’s advertising and personal selling directed to wholesalers, distributors, or retailers. Also called trade promotions.
Publicity Tools
Methods of obtaining nonpersonal presentation of an organization, product, or service without direct cost, such as news releases, news conferences, and public service announcements (PSAs).
New Release
An announcement regarding changes in the company or the product line
News Conference
Representatives of the media are all invited to an informational meeting, and advance materials regarding the content are sent.
Public Service Announcements (PSAs)
Free space or time donated by the media for nonprofit organizations
Sales Management
Planning the selling program and implementing and evaluating the personal selling effort of the firm.
Relationship Selling
The practice of building ties to customers based on a salesperson’s attention and commitment to customer needs over time.
Order Taker
Processes routine orders or reorders for products that were already sold by the company.
Order Getter
Sells in a conventional sense and identifies prospective customers, provides customers with information, persuades customers to buy, closes sales, and follows up on customers’ use of a product or service.
Team Selling
The practice of using an entire team of professionals in selling to and servicing major customers.
Personal Selling Process:
Sales activities occurring before, during, and after the sale itself, consisting of six stages: (1) prospecting, (2) preapproach, (3) approach, (4) presentation, (5) close, and (6) follow-up.
Lead
The name of a person who may be a possible customer
Prospect
A customer who wants or needs the product
Qualified Prospect
An individual that wants the product, can afford to buy it, and is the decision maker.
Cold Calling
A salesperson may open a directory, pick a name, and contact that individual or business.
Need-Satisfaction Presentation
Emphasizes probing and listening by the salesperson to identify the needs and interests of prospective buyers.
Adaptive Selling
A need-satisfaction presentation format that involves adjusting the presentation to fit the selling situation, such as knowing when to offer solutions and when to ask for more information.
Consultative Selling
A need-satisfaction presentation format that focuses on problem identification, where the salesperson serves as an expert on problem recognition and resolution.
Upselling
The practice of introducing a higher-end product solution that the one in question
Cross-Selling
The practice of proposing related or complementary products and services
Objections
Excuses for not making a purchase commitment or decision
Geographical Sales Organization
The United States or the world are divided into regions and each region is divided into districts or territories. Salespeople are assigned to each district with defined geographical boundaries and call on all customers and represent all products sold by the company.
Customer Sales Organization
A different salesforce calls on each separate type of buyer or marketing channel. Used when different types of buyers have different needs
Product Sales Organization
Sales organization used when specific knowledge is required to sell certain types of products.
Customer Relationship Management (CRM)
Consolidate customer and sales information in a single database so that salespeople and sales managers can more easily access, analyze, and manage a company’s relationship with individual customer or accounts.
Salesforce Automation (SFA)
The use of various technologies to make the sales function more effective and efficient.
Marketing Automation
Applies systems and technologies, including AI algorithms, to provide insights to salespeople
Customer Service and Support Automation
Consists of processes and technologies that supply customers with information about postal activities, including installation, repair, replacement, replenishment, and technical expertise pertaining to products.
Logistics
Those activities that focus on getting the right amount of the right products to the right place at the right time at the lowest possible cost.
Supply Chain
The various firms involved in performing the activities required to create and deliver a product or service to consumers or industrial users.
Supply Chain Management
The integration and organization of information and logistics activities across firms in a supply chain for the purpose of creating and delivering products and services that provide value to the customers.
Channel Stewardship
How a company designs, manages, and evolves its channel strategy in light of changing competitive and customer environments
Distribution Channels
The venue a company uses to move its products or services to the world
Retailing
The final stop in the distribution channel in which organizations sell goods and services to consumers for their personal use
Store Retailing Examples
Convenience Stores, Supermarkets, Etc.
Non-Store Retailing
Online, Vending, Catalogs, Etc.
Retailing Strategy is the same as ________ but replace the 4Ps with:
The same as marketing strategy but replace the 4Ps with:
Pricing
Location
Communication
Merchandise
What is rapidly changing the retail environment?
Economic, Customer, Technological Evolutions.
What is a key tool in developing a seamless omnichannel approach
Customer Journey Map
Integrated Marketing Communications
Designing marketing communications programs that coordinate all promotional activities to provide a consistent message across all audiences.
How to Develop an Integrated Marketing Communications Approach:
-Planning
-Implementation
-Evaluation
The Advertising Process Steps:
- Client
- Creative Brief
- Agency
Creative Brief definition and components
The contract between client and agency
-The Challenge
-The Target Audience
-The Insight
-The Benefit
-The Reasons to Believe
-Relevant Background
The SUCCESs Framework definition and components:
The framework that advertising that sticks follows
-Simple
-Unexpected
-Concrete
-Credible
-Emotional
-Stories
What Sales is:
-Encouraging people to buy things that will add value
-Leveraging date to demonstrate the value
-Attentive listening
-Customer focused
-In-Step with marketing
Four elements of compensation:
Fixed
Variable
Expenses
Fringe Benefits
Four Forces Affecting Channel Strategy:
Customer / Consumer Needs
Channel Capabilities & Costs
Competitive Postures and Actions
Channel Power & Influence
Tabletop Review Process
A visual check-in to confirm that the individual advertising tactics both deliver their assigned objective AND communicate a consistent message
Four Business Practices that Lead to Success:
-Strategy
-Execution
-Structure
-Culture
