Marketing Strategy, Product Development, and Communication Practice Flashcards

Flashcards covering marketing strategy, product development, distribution channels, retailing, IMC, advertising, personal selling, and digital marketing as per lecture notes.

Customer Value-Driven Marketing Strategy

A plan used by a company to create value for customers and build strong customer relationships.

Market Segmentation

Dividing a large market into smaller groups of customers who have similar needs, characteristics, or behaviors.

Market Targeting

Choosing one or more market segments to serve.

Differentiation

Making a product different from competitors.

Positioning

Creating a clear image of the product in customers' minds.

Geographic Segmentation

Dividing the market according to location, such as countries, regions, states, cities, or neighborhoods.

Demographic Segmentation

Dividing customers based on population characteristics such as age, gender, income, occupation, education, religion, ethnicity, or generation.

Psychographic Segmentation

Dividing customers according to lifestyle, social class, or personality.

Behavioral Segmentation

Dividing customers according to knowledge, attitudes, usage, or responses; believed by many to be the best segmentation method.

Occasion Segmentation

Segmenting customers based on when they buy or use a product, such as Christmas sales or winter soup advertisements.

Benefit Segmentation

Grouping customers according to the specific benefits they seek from a product.

Hyperlocal Social Marketing

Targeting people in a very specific location using digital tools.

Intermarket Segmentation

Grouping consumers with similar needs even though they live in different countries.

M-A-S-D-A

The requirements for effective segmentation: Measurable, Accessible, Substantial, Differentiable, and Actionable.

Undifferentiated Marketing (Mass Marketing)

A strategy using one product and one marketing program for everyone, focusing on common needs.

Differentiated Marketing

Targeting several segments with different products for each.

Concentrated Marketing (Niche Marketing)

Focusing on one small segment to build strong expertise and efficiency.

Micromarketing

Tailoring products to individual people or locations, including local and individual marketing.

Individual Marketing

Customizing products for one customer, also called One-to-One Marketing or Mass Customization.

Competitive Advantage

An advantage gained by offering customers more value than competitors through lower prices or better benefits.

Value Proposition

The complete mix of benefits offered to customers that explains why they should buy a brand.

More for More

A value proposition offering higher benefits for a higher price, typical of luxury brands like Mercedes or Rolex.

Positioning Statement

A statement explaining how a brand wants customers to see it, using the formula: To (target market), our (brand) is (category) that (point of difference).

Acquisition

Buying another company, patent, or license to obtain a new product.

New Product Development (NPD)

Creating new products using a company's own research and ideas.

Crowdsourcing

Asking a large group of people, such as customers, to contribute new product ideas.

R-W-W Framework

A screening framework used to evaluate if an idea is Real, if the company can Win, and if it is Worth doing.

Product Concept

A detailed version of a product idea explained in customer language.

Concept Testing

Testing product concepts with target customers to get feedback and find problems.

Marketing Strategy Statement

A plan containing the target market, value proposition, and sales/profit goals for a new product.

Test Marketing

Testing the product and marketing plan in realistic market conditions before a full launch.

Product Life Cycle (PLC)

The stages a product passes through from creation until decline: Development, Introduction, Growth, Maturity, and Decline.

Style

A basic and unique way of expression that can last many years and may come back repeatedly.

Fashion

A currently accepted style that grows and declines gradually over a medium duration.

Fad

A product or trend that becomes popular quickly and disappears quickly.

Product Steward

A person responsible for protecting customers and preventing product-related problems.

Standardization

Selling nearly identical products worldwide to lower costs and maintain a consistent global image.

Customization (Adaptation)

Changing products to fit local preferences, customs, and laws in international markets.

Marketing Channel (Distribution Channel)

A group of organizations that help move a product or service from the producer to the final customer.

Upstream Partners

Companies that provide resources, raw materials, parts, and information needed to make products.

Downstream Partners

Partners closer to customers, like retailers and wholesalers, who help sell and distribute products.

Value Delivery Network

The team consisting of the company, suppliers, distributors, and customers working together to create value.

Channel Level

A layer of intermediaries that helps move products to buyers.

Direct Marketing Channel

A channel with no intermediaries where the producer sells directly to the consumer.

Channel Conflict

Disagreements between channel members; can be horizontal (same level) or vertical (different levels).

Vertical Marketing System (VMS)

A distribution system where producers, wholesalers, and retailers act together as one unified system.

Corporate VMS

A system where different stages of production and distribution are owned by one single company.

Franchise Organization

A contractual VMS where a franchisor licenses businesses to operate using its brand and format.

Disintermediation

The removal of intermediaries from a channel, such as ride-sharing apps replacing traditional taxi systems.

Intensive Distribution

A strategy where a product is made available in as many outlets as possible.

Exclusive Distribution

A strategy where only a few selected dealers are given the right to sell the product.

Selective Distribution

A strategy using more than one but fewer than all dealers who are willing to carry the product.

Marketing Logistics

Planning, implementing, and controlling the movement of goods, services, and information from producer to consumer.

Sustainable Supply Chain

A supply chain designed to be environmentally friendly while remaining profitable.

Retailing

All activities involved in selling goods and services directly to final consumers for personal use.

Shopper Marketing

Marketing focused on influencing customers at the store or online point of sale to turn them into buyers.

Omni-channel Retailing

Creating a seamless shopping experience across all platforms, including stores, websites, and mobile apps.

Category Killers

Huge stores focused on one specific category, such as Best Buy or Home Depot.

Wholesaling

Selling goods to retailers or businesses rather than to final consumers.

Merchant Wholesalers

The largest group of wholesalers who buy and own the goods they sell.

Integrated Marketing Communications (IMC)

Carefully combining all promotion tools to deliver a clear, consistent, and strong brand message.

Promotion Mix

The tools used for marketing communication: Advertising, Personal Selling, Sales Promotion, Public Relations, and Direct & Digital Marketing.

The 5 A's

The steps of customer communication objectives: Awareness, Appeal, Ask, Act, and Advocacy.

Push Strategy

A strategy that focuses on pushing products through retailers via salespeople and trade promotions.

Pull Strategy

A strategy that uses advertising to pull customers into stores to demand the product.

Services

Non-ownership economic activities that provide value through time, skills, or facilities.

Intangibility

A service characteristic meaning they cannot be seen or touched before purchase.

Inseparability

A service characteristic where services are produced and consumed at the same time.

Variability

A service characteristic where quality depends on who provides the service and when.

Perishability

A service characteristic meaning they cannot be stored for later sale or use.

Servicescape

The physical environment where a service is delivered, such as building design and lighting.

Service–Profit Chain

The chain linking internal quality and happy employees to customer loyalty and business profit.

Informative Advertising

Advertising used to build awareness and explain products when introducing something new.

Persuasive Advertising

Advertising used to convince customers to choose a specific brand over competitors.

Reminder Advertising

Advertising used for mature products to keep the brand in the customer's mind.

Return on Advertising Investment (ROI)

The net profit from advertisements divided by the cost of the ads.

Public Relations (PR)

Building good relationships with public groups to create a positive image and manage reputation without paying for media space.

Personal Selling

The interpersonal part of the promotion mix where salespeople communicate directly with customers to build relationships and make sales.

Territorial Sales Force Structure

An organization where each salesperson is assigned a specific geographic area and sells all company products there.

Sales Quota

A standard that states how much a salesperson should sell over a set period.

Social Selling

Using online, mobile, and social media tools to engage customers and improve sales performance.

Prospecting

The first step in the personal selling process: finding qualified potential customers.

Value Selling

Presenting products based on their value and benefits rather than focusing only on price.

Sales Promotion

Short-term incentives, like coupons or samples, that encourage immediate purchase.

Direct Marketing

Engaging directly with targeted customers to obtain an immediate response instead of using retailers.

Search Engine Optimization (SEO)

Improving website rankings in search engine results naturally without direct payment.

Search Engine Marketing (SEM)

Using paid search advertising to improve visibility on search engines.

User-Generated Content

Content like reviews, photos, or videos created by consumers rather than the company.

Location-Based Marketing

Sending marketing messages to customers based on their specific geographic location.

GDPR

General Data Protection Regulation; a law designed to protect personal data and privacy.

COPPA

Children's Online Privacy Protection Act; a law that protects children's personal information online.