Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
76 Cards in this Set
- Front
- Back
|
Independent Retailer |
One--or a very few--units under the same ownership |
|
|
Chain Store |
Multiple units under the same ownership |
|
|
Franchise |
Independent owner-operator licensed by larger support organization |
|
|
Product & trade name franchising |
Contractual vertical marketing arrangement |
|
|
Business format franchising |
Recognized name + expertise |
|
|
Department store |
Large store organized into many separate departments |
|
|
Specialty store |
Single-limited lines/High margin/High service |
|
|
Supermarket |
Large departmentalized self-serve retailer that specializes in food and non-food items |
|
|
Scrambled merchandising |
Offering non-traditional goods such as cards/gadgets |
|
|
Drug store |
Pharmacy-related items |
|
|
Convenience store |
Limited lines/High margin/High turnover |
|
|
Full-line discount store aka Mass Merchandiser |
Moderate to low prices/less atmosphere and service than department store/High volume and turnover |
|
|
Category superstore aka Specialty discount store |
Single to very limited lines/low prices/high turnover/more-or-less self service (Often erroneously called category killers) |
|
|
Warehouse membership club |
Limited assortment/In bulk to members only |
|
|
Off-price retailer |
Buy up manufacturers' overruns and unsold merchandise |
|
|
Factory outlet store |
Vertically-integrated off-price retailer |
|
|
Automatic vending |
ever see a pepsi machine? |
|
|
Direct retailing |
Face-to-face with the customer |
|
|
Direct marketing |
No intermediaries (E-tailers/Direct mail-catalogues/Telemarketing/Shop-at-home networks/Infomercials |
|
|
Retailing Mix |
The 4 Ps + Presentation/Personnel |
|
|
Profit maximization |
Total revenue as large as possible relative to total costs |
|
|
Market share |
Gain trial, establish distribution and dominant position |
|
|
Sales maximization |
Need to raise cash or clear out volume |
|
|
Status quo:
|
Maintain existing prices aka Satisfactory profits. Meet competitors' prices aka Follow-the-leader pricing |
|
|
Step 1: Establish pricing goals |
Better stated, Establish marketing goals |
|
|
Break-even analysis |
How many units must you sell at a given price to recover costs |
|
|
Double-check ROI at different prices |
Are you better off buying Treasuries? |
|
|
Price skimming (Profit maximization strategy) |
Come in with high initial prices lowering it when/if competition enters |
|
|
Penetration pricing (Sales maximization strategy) |
Come in with low initial price to match or pre-empt competition |
|
|
Unfair trade practices |
set floor on overall prices. Generally ignored unless you practice |
|
|
Predatory pricing |
Specifically attempting to drive competition out of business |
|
|
Price fixing |
2 or more firms conspire to set prices |
|
|
Price discrimination |
Charging different prices for the same item to different customers |
|
|
FOB (Free on board) |
Point at which title passes |
|
|
FOB Origin |
Title passes at seller's dock |
|
|
Uniform delivered pricing aka Freight absorption pricing |
Same price for everyone everywhere |
|
|
Zone pricing |
Break nation/world into manageable number of areas and charge different delivered price by area |
|
|
Basing point pricing |
Select one or more points as bases and charge shipping from there, irregardless of where actually shipped from |
|
|
Captive pricing |
Give you something or sell you something super cheap and make money selling component parts |
|
|
Leader pricing aka Loss leader pricing |
Product priced below cost as traffic builder |
|
|
Bait pricing aka Bait & Switch |
Lure you in with something they don't really have |
|
|
Price Bundling |
Package multiple items together so you have to buy them all |
|
|
Intro stage |
High levels of advertising to gain awareness/trial |
|
|
Inform= Primary demand = Pioneering advertising |
if you are first in the category |
|
|
Persuade = Secondary demand = Competitive advertising |
if not |
|
|
Growth stage |
Fighting it out for market share (Persuade) |
|
|
Maturity to Early decline |
Remind if you are a master brand or have a cash cow. Divest when the cash cow becomes a dawg |
|
|
Instituional advertising |
promotes a company image, a product class, or advocates a position |
|
|
Product advertising |
promotes a specific product/service |
|
|
Direct-action advertising |
seeks immediate action |
|
|
Indirect-action advertising |
builds image/positioning/long-term awarenss/loyalty |
|
|
Comparative advertising |
Us vs. Them |
|
|
Cooperative advertising |
Costs shared between producer and retailer |
|
|
First thing to do in developing an ad campaign |
Determine campaign objectives |
|
|
DAGMAR |
Defining advertising goals for measured advertising results |
|
|
Advertising appeal aka Unique selling proposition aka Commercial positioning concept (CPC) |
Phrase that ties directly to your positioning/differential advantage |
|
|
To reach a wide, diverse audience |
Network TV/Magazines such as Time-Newsweek-People |
|
|
For a more narrow, specialized audience |
Specialty cable channels such as Golf Network/Magazines such as American Rifleman-Fitness. Customers must find you when doing a Google search. Product placements as an alternative to traditional media |
|
|
Coupons |
Price reduction at time of purchase in retail outlet |
|
|
Revates |
Direct from manufacturer |
|
|
Premiums |
A freebie thrown in when you buy something else |
|
|
Self-liquidating premium |
Costs fully factored into promo deal, and premium item can stand alone |
|
|
Contests |
Must complete some task to win |
|
|
Sweepstakes |
Random chance |
|
|
Loyalty marketing programs/Frequent buyer programs |
Long-term objective |
|
|
Sampling |
Lets prospect try productive risk free, in-store/by mail/elsewhere |
|
|
Point-of-purchase (POP) materials/Display equipment |
2x sales, especially important for discretionary impulse products |
|
|
Trade allowances |
Price reduction/rebate/free merchandise for performance of some kind |
|
|
Non-discretionary items |
Traffic builder |
|
|
Discretionary items |
"Plus" business |
|
|
Push money |
Financial incentives to inside salespeople in retail outlets |
|
|
Conventions/Trade shows |
Industry get-togethers for B2B meeting & schmoozing |
|
|
Push strategy |
Promo $ directed toward channel members. Must do this if your product is undifferentiated/you are not a category leader |
|
|
Pull strategy |
Promo $ directed toward ultimate consumer. May do this if your product has a competitive advantage/you are a category leader |
|
|
MAR 4412 |
Professional Selling Methods (a 14-week sales training program) |
|
|
MAR 4403 |
Sales Management (a 14-week management training program) |
