Final Vocab BUSML 3250 Piletz- Principles of Marketing OSU

Situation Analysis (5Cs)

1. Company2. Customers3. Collaborators4. Competitors5. Context

Company

A business or association usually formed to manufacture or supply products or services for profit.

Context

the circumstances surrounding a user's interaction with a brand

Customer

someone who pays for goods or services

Competitors

companies in the same industry that sell similar products or services to customers

Collaborators

firms that facilitate or provide one or more of the marketing functions other than buying or selling

SWOT Analysis

a planning tool used to analyze an organization's strengths, weaknesses, opportunities, and threats

Market Research

The activity of gathering information about consumers' needs and preferences.

Primary Research

your own research

Secondary Research

public research others have done

Insights

frustration with a situation led to a personal idea that solves the problem; observations you can make from collected datasets that businesses use to inform their marketing strategy

Segmentation

Involves aggregating prospective buyers into groups, or segments, that (1) have common needs and (2) will respond similarly to a marketing action

Geographic Segementation

based on where prospective customers live or work (region, city size)

Demographic Segmentation

based on some objective physical (gender, race), measurable (age, income), or other classification attribute (birth era, occupation) of prospective customers

Psychographic Segmentation

based on some subjective mental or emotional attributes (personality), aspirations (lifestyle), or needs of prospective customers

Behavioral Segmentation

based on some observable actions or attitudes by prospective customers—such as where they buy, what benefits they seek, how frequently they buy, and why they buy

Targeting

A strategy in which marketers evaluate the attractiveness of each potential segment and decide in which of these groups they will invest resources to try to turn them into customers.

1. size of prize

2. right to win

(market size, expected growth, competitive position, cost of reaching, company compatibility)

Positioning

how you want to be perceived

Positioning Statement

a statement that summarizes company or brand positioning using this form:

For (target market), brand X is the only brand among all (competitive set) that (benefit/unique selling proposition) because (reasons to believe).

Perceptual Map

a means of displaying in two dimensions the location of products or brands in the minds of consumers to enable a manager to see how they perceive competing products or brands, as well as the firm's own product or brand

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

intermediaries who represent sellers but do not actually take title to products-- their role is to bring a seller and buyer together

Wholesaler

A type of business that buys goods in large amounts and resells them to other businesses in smaller lots.

Transactional Functions

intermediaries perform this when they buy and sell products or services

Logistical Functions

gathering, sorting, and dispersing products

Facilitating Functions

functions of channel intermediaries that make the purchase process easier for customers and manufacturers

Direct Channel

a distribution channel in which producers sell directly to consumers

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

Multi-channel/Omni-channel 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 Systems

the combination of successive stages of production and distribution under a single ownership

Intensive Distribution

a firm tries to place its products and services in as many outlets as possible

Exclusive Distribution

only one retailer in a specified geographical area carries the firm's products

Selective Distribution

a firm selects a few retailers in a specific geographical area to carry its products

Buyer Requirements (four categories)

1. information

2. convenience

3. variety

4. 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 Conflict

channel conflict that occurs between different levels of the same channel

Disintermediation

when a channel member bypasses another member and sells or buys products direct

Horizontal Conflict

a channel conflict that occurs among channel members on the same level

Channel Captain

a channel member that coordinates, directs, and supports other channel members

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 consumers

Consumer Utilities

Utilities provided by retailers create value for consumers (time, place, form and possession); Form utility refers to the value of a product's design and features, time utility is the value added by making a product available when customers need it, place utility is the value of making a product accessible where customers want it, and possession utility is the value of transferring ownership to the consumer

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

form of ownership that involves an independent business owned by an individual

Corporate Chain

A form of ownership that involves multiple outlets under common ownership

Franchising

selling to a foreign organization the rights to use a brand name and operating know-how in return for a lump-sum payment and a share of the profits

Self Service

requires that customers perform many functions during the purchase process (gas station, Costco, redbox)

Limited Service

provide some services, such as credit and merchandise return, but not others, such as clothing alterations (Walmart, Target, general merch)

Full Service

provide many services to their customers (Nordstrom, Saks Fifth Ave)

Depth of Product Line

the store carries a large assortment of each item, such as a shoe store that offers running shoes, dress shoes, and children's shoes

Supercenter

combines a typical merchandise store with a full size grocery store

Breadth of Product Line

the variety of different items a store carries

Automatic Vending

the use of machines to dispense products

Direct Mail and Catalogs

"the store that comes to the door"

Television Home Shopping

a form of selling in which products are presented to television viewers, who can buy them by calling a toll-free number and paying with a credit card

Online Retailing

allows consumers to search for, evaluate, and order products through the internet

Telemarketing

using the telephone to sell directly to customers

Direct Selling

selling to consumers in their homes or where they work

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 includes 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

occurs when the product does not sell at the original price and an adjustment is necessary

Everyday Low Pricing (EDLP)

A strategy companies use to emphasize the continuity of their retail prices at a level somewhere between the regular, nonsale price and the deep-discount sale prices their competitors may offer.

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 the 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 for directing 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

online consumers who shop online but buy offline, or shop offline but buy 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

the combination of one or more of the communication tools used to inform, persuade, or remind prospective buyers

Advertising

any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor

Personal Selling

The two-way flow of communication between a buyer and a seller that is designed to influence the buyer'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

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—to inform; Growth—to persuade; Maturity—to remind; and Decline—to phase out.

Product Characteristics

The proper blend of elements in the promotional mix also depends on the type of product. Three specific characteristics should be considered: complexity, risk, and ancillary services.

Stages of the Consumer Journey

1. pre-purchase

2. purchase

3. post-purchase

Push Strategy

directing the promotional mix to channel members to gain their cooperation in ordering and stocking the product