Marketing/ Product and Service Management Flashcards
]Why is marketing data important?
It helps businesses understand consumer needs and preferences.
It allows businesses to make informed decisions about products, pricing, and promotional strategies.
It aids in tracking trends and competitor activities to stay competitive.
How is marketing data collected and analyzed?
Data Collection: Surveys, focus groups, social media, website analytics, purchase history.
Data Analysis: Data mining, statistical tools, and interpreting trends to make decisions.
What are the different types of marketing data?
Primary Data: Data collected directly from customers (e.g., surveys, interviews).
Secondary Data: Data collected from existing sources (e.g., reports, research).
Quantitative Data: Numerical data used to measure market performance.
Qualitative Data: Descriptive data that gives insights into consumer behavior
What is a buying power index and what variables does it include?
A measure used to assess the purchasing potential of a market area.
Variables: Local income levels, employment rates, and cost of living.
What are the steps of the consumer decision-making process?
Problem Recognition: Realizing a need or desire.
Information Search: Gathering information about potential solutions.
Evaluation of Alternatives: Comparing different products or services.
Purchase Decision: Making the final decision to purchase.
Post-Purchase Behavior: Evaluating satisfaction after the purchase.
What psychographic attributes are involved in profiling a target customer?
Lifestyle: Activities, interests, and opinions.
Personality: Traits, values, and attitudes.
Social Class: Economic and social status.
What factors should be considered when choosing the quality of merchandise?
Target Market: Understanding the expectations of your customers.
Brand Reputation: Opting for trusted and quality brands.
Material and Durability: Ensuring long-lasting products.
Price Point: Balancing quality with affordable pricing for your market.
What are the types of merchandise assortment plans?
Broad Assortment: Offering a wide variety of products in many categories.
Narrow Assortment: Focusing on fewer categories but with deeper selection in each.
Deep Assortment: Offering many options within a particular category (e.g., several colors or sizes).
How do you calculate stock turnover rates?
Stock Turnover Rate = Cost of Goods Sold (COGS) / Average Inventory
A high turnover rate means that products are selling quickly, while a low rate indicates overstocking.
What factors should be considered when choosing suppliers/vendors?
Cost: Price competitiveness and terms of payment.
Quality: Supplier’s ability to meet product standards.
Reliability: On-time delivery and consistent product availability.
Reputation: The vendor’s reputation in the industry.
What are types of merchandise price reductions and reasons for planning them?
Markdowns: Temporary price reductions to stimulate sales or clear inventory.
Clearance Sales: Final reductions on outdated or discontinued items.
Discounts: Offered to increase short-term sales, attract customers, or compete with rivals.
Coupons: Incentives for customers to purchase at a lower price.
What are some types of pricing strategies used in retail?
Prestige Pricing: Setting a high price to reflect high quality.
Promotional Pricing: Temporary discounts to stimulate sales.
Odd-Even Pricing: Pricing items just below a round number (e.g., $9.99 instead of $10).
Cost-Plus Pricing: Adding a fixed markup to the cost of the product.
How do you manage stock turnover and markdown reductions?
Monitor inventory levels regularly to prevent overstocking.
Plan for markdowns based on inventory age and seasonal factors.
Aim for optimum stock turnover to ensure consistent sales and avoid obsolescence.
How do you decide what to buy/reorder for your store?
Review sales data and market trends to predict customer demand.
Monitor inventory levels to avoid stockouts or overstocking.
Seasonality: Order merchandise based on upcoming seasons or holidays
What are the components of a retail image?
Store Layout: Design and arrangement of the physical space.
Merchandise Display: How products are presented to attract customers.
Customer Service: The level of service provided to customers.
Branding: The overall image and reputation of the store.
