Number of flashcards in this category: 65.
1.	multi-attribute model		The attitude towards a brand is the weighted sum of: (importance of an attribute)*(brand's performance in that attribute)
2.	evolution of retailing		General stores, department stores, supermarkets, catalogs/showrooms, warehouses, home shopping, e-commerce and finally m-commerce.
3.	plc curve: sales & profits		plc curve
4.	double marginization		Concept that at each level of supply chain, a margin is added on. Leads to higher end prices and lower gains at each level. (Private brands try to avoid this)
5.	channel conflict: horizontal		Multiple outlets on the same level (like selling through grocery, versus warehouse/clubhouse.) Problem with maintaining business & margins.
6.	media trends		tv - falling radio - stable magazine - stable internet - shooting up newspaper - dropping slightly
7.	ethnography		form of research involving fieldwork. Actually become the customer, or work in a field where can observe and work with subjects directly.
8.	process (5)		1. define the problem 2. analyze the situation 3. gather problem-specific data 4. interpret data 5. create a solution
9.	4. pricing environment		Look at context: - inflation/recession - competition: monopoly? many other companies? - channel concerns (collaborators, shipping costs) - consumer trends - gov't concerns (laws)
10.	1. pricing objectives		- gain sales/market share (not necessarily profit) - profit (ex. Steinway's priced for profit, not mkt share) - competitive effect (disrupt competition by price slashing) - gain customer satisfaction - enhance image (high price = high quality)
11.	2. promotion budget		10% of soap only 1.2% of computers Varies on product. Strategically, spend as much as your competitors (parity)
12.	intermediaries (4)		1. agents/brokers: negotiate sales between two companies (never actually takes the goods) 2. wholesaler: takes good and resells 3. retailers: sell to end users 4. facilitators: FedEx, UPS, never own the goods but plays a role in transporting them
13.	breaking bulk		Sell large amount to a distributor (not end user, b/c end user doesn't need that much), so the distributor can break into smaller chunks and sell it where it needs to go.
14.	positioning		influences how segment perceives a product in comparison to the competition. Your mktg mix much make your product fit better than competitor's.
15.	role of distribution intermediary		Instead of three companies each having three customer contacts, each company has ONE intermediary who knows the three customers. One both ends, have to deal with fewer links and the intermediary handles them all. Pares down from 81 mil to 100,000 links.
16.	Walmart philosophy		Tight control of distribution channels; uses a lot of "just in time" distribution to avoid warehousing and high degree of automation. - Squeeze highest margin from distributors (else we won't sell your product). - Bad for Hersheys, diapers (hersheys sells 30% of product at Walmart)
17.	basic needs (4)		1. esteem - feel good about self 2. control - bring about own outcomes 3. belonging - connect w/ other people, social acceptance 4. meaningfulness - do things that will last, be significant mktg plays on these: e.g. you can't control your weight due to genes/ fast food but we can help you control it! You don't have control over earthquakes, but insurance can help you feel more in control of it.
18.	3. determining costs		(see mktg math)
19.	plc: introduction		- Mostly market pioneers. Risky and costly. - Little competition. - Often unprofitable (need to be the first one to promote this new product) - Aimed towards early adopters: often highly innovative customers who keep up with new tech - Intro strategies: skim or penetrate
20.	research criteria (4)		1) needs to be current data (segments move, preferences change) 2) needs to have validity (something can be reliable in that the same result keeps on coming up, but it's not valid b/c might be measuring wrong thing in the first place!) 3) reliable (consistent) 4) representative of the market
21.	plc: growth		- rapid increase in sales - many entrant competitors - many new customers (intro companies can reap repeat sales from early adopters) - gains in profitability - increasing product differentiation due to competitors
22.	evolution of mktg (4)		1. product oriented: build it and they'll come. 2. sales oriented: advertise to make them want it 3. consumer oriented: research and make what they want 4. customer relationship management: maintain an ongoing relationship with the customer, extract lifetime value
23.	brand image		Can be built by identificational markers of the product (e.g. bottle shape, or text fontface), associations with the actual product (high quality, refreshing), gender (Dove vs. Zest), age, social class, place.
24.	entering PLC market		Your product may not follow curve, because you're entering the market mid-curve. (ex. entering @ maturity phase will result in different profits than entering in growth phase)
25.	targeting		Consider: - segment size - segment growth - segment value - stability - easy of entry - ability to reach and serve segment - competitors that might be/want to enter segment PLC: if skimming, highly segmented. If penetrating, then more broad segments.
26.	channel		A path that takes the product from producer to end user. Goal: efficiency
27.	intensive coverage		- distribution through as many reasonable outlets as possible - low selling effort - easy to stock
28.	private labels		Stores create own brands. e.g. Trader Joe's
29.	information search		- internal searches: come from memory, short list of brands that could satisfy need, VERY HIGH CHANGE that final purchase will be from initial consideration set. So, companies try very hard to make sure brand is well-known and in mind. Build high awareness. - external search: word of mouth/ ask other people/ look it up on web or in stores
30.	inferior goods strategy		Provide generics, lesser quality AND lower price. - The bad quality gets people. Out of favor now.
31.	brand relationships		Consumers have a contract with a brand. They buy, expect value and what they see the brand as standing for. Brand gets their loyalty.
32.	evaluation of alternatives		- Can use multi-attribute model to determine how to better serve customers. - High effort vs. low effort.
33.	qualitative research		- depth interviews - focus groups - ask about brands and metaphoric meanings (ZMET) ex: Cheerios and family
34.	various plc shapes
35.	why retailers want to be brands		1. Greater profit opportunity 2. Provide a unique offering, and only at their store 3. Allows you to bargain w/ nat'l suppliers (I'm putting my __ on the shelf, less room for you.) 4. Reduces more players in the game, which lowers your margin.
36.	Fixing a well-created product		1) availability good? (right distribution, enough units) 2) awareness high? (relative advertising) 3) perceptions good? (might be good on main important attributes, but not on the ones that matter)* 4) history? (past history of company) 5) is competition outdoing us? (market is always *relative*)
37.	plc: decline		- sales and profits decreasing - no new customers, more competitors dropping out - often caused by replacement technology (e.g. CDs to mp3s) - use one of four basic strategies
38.	% of selling that is advertising		Averages out to 5-7%. (Varies based on item)
39.	1. promotion objectives		Vary based on PLC. A new product, might be to try to inform, create awareness and persuade to try. A mature product, may be "reminder" of brand.
40.	% of cost that is distribution		30-50% of costs are distribution. Least flexible to change. Could take years to modify. (e.g. contracts betw. dealers and manufacturers)
41.	internal vs. external validity		In experimental studies, we control the factors and conditions. There is internal validity in that we can be sure there is a cause & effect relationship. However, because it is controlled, it may not mimic real life situations and we lose external validity. Unrealisitic results.
42.	recognition of needs		- Needs are driven by a discrepancy between current state and desired state. ex. hungry, want food. in school studying, want a good job and happy family. - Products take a consumer from one state to another. - Needs can be utiliarian (useful) or psychological (nice car for self esteem) - mktg pushes the "ideal state" away from current state in order to get people to want smthg.
43.	correlational studies		Correlation expressed as value between -1 and 1. -1: negative correlation. (the higher the age, the less technology they use) 0: no correlation (height & music downloads) 1: positive correlation (the higher the income, the higher the spending on apparel) ** Does not imply causation**
44.	selective coverage		- through multiple but not all reasonable outlets - less retail loyalty; but allows company to limit price competition - most popular, ability to avoid working with those wholesalers who make small orders, demand too much service, poor credit, don't do satisfactory job
45.	5. pricing strategies		- cost-plus: determine your costs, set a margin for your profit (not always most strategic) - competition-based: going rate, same as similar products - price leadership: "undercut leader", leads to price war, not always feasible for small companies - target-cost: pick price, design around that target price by reverse engineering it (needs time) - yield management: things that are time based like plane seats; save quantity and price according to necessity at a given time - value-based: EVC economic value to customer (usefulness) - EDLP - skim/penetrate/trial prices
46.	correlational vs. experimental studies		Correlational: looks for association between variables. Experimental: tries to determine cause and effect, more controlled.
47.	plc: maturity		- intense competition on all 4 Ps - clear segmentation: experience buyers, slowdown in customer acquisition, no technological breakthroughs - repeat sales are key now - squeeze out profits through: niche branding, small differentiations (size, color), cost cutting
48.	decline strategies (4)		1. withdraw/divest (leave market) 2. harvest (reduce investments, let sales go on) 3. niche (resegment to focus on whoever is still buying them) 4. market leadership (reinvigorate product into new markets) - can also introduce variations (cherry coke), new uses (baking soda), new markets (overseas, DIY), product variations (jello to puddings)
49.	channel conflict: vertical		producer: wants to sell most of own goods wholesaler: wants to sell most of goods retailer: wants to sell at the highest margin ^ Varying goals.
50.	customer acquisition distribution		Bell curve distribution; similar to diseases, ideas.
51.	brand: emotional effect		Often brands play among psychological factors. ex: "X" targets more young men. Diapers imply love/hugs: "Luvs", "Huggies", "Pampers" (nothing like "Absorbency Master")
52.	elasticity		- elastic products are those in which a change in price causes change in qty. demanded (luxury goods, flexible, substitutes available) - inelastic goods are often staples or necessities: a drastic change in price does not change demand (gas, medications) E = %change in demand/% change in price
53.	"Me Too" strategy		Generic-like, but mimics leading brand in packaging AND quality. (CVS) - Often equally as effective, but at a much lower price. Often supplied by the same provider, except they're forced into it by retail power.
54.	high vs low effort decisions		High: high price item, very important, expensive, think a lot more about it and consider options carefully. Low: cheap item, not a huge difference between brands, does not require as more consideration.
55.	2. estimating demand		- see demand curve: find the right price point at which people buy in enough amount @ certain price (maximize revenues) - inverse luxury goods curve: too low, or too high, sales drop - "sweet spot" - see elasticity
56.	stategy for declining industries
57.	3a. message		Use a creative strategy to appeal. - try to differentiate product/brand and how it is remembered. - draw on emotions: sex, fear, humor - simplistic emotions are best, not too extreme
58.	2 uses of mktg research		1) Diagnostic - evaluate current offerings 2) opportunity analysis - forward looking
59.	business objects vs. ethical action		Businesses want: - efficiency, high returns (ROI), maximum shareholder profit These values don't always align with: - upholding company values, social responsibility
60.	advertising cycle		1. Objectives 2. Budget 3. Message & Media 4. Evaluation
61.	consumer decision making process (5)		1. recognize need 2. information search 3. evaluate alternatives 4. decision to pruchase 5. postpurchase behavior (extremely important, links back to all others in cycle)
62.	3b. the media		"vehicle" to getting message across - used to be newspapers, magazines, etc. - Now, more various ways to reach people. Everybody spending a ton; need to "cut through clutter"
63.	perceptual map		- mapping of two factors and where customers perceive a product on those factors - caveat: an empty area could be an opportunity to enter, but *must check there are customers there to begin with*
64.	6. pricing tactics		(see various tactics) -
65.	exclusive coverage		- through a single middleman/retailer - high influence on final sale price/style - high margins - limited reach - selection of only one middleman in each geographic area, usually involves an agreement