Business Strategies and Consumer Behavior

Marketing Strategies and Distribution Channels

Discount Store Strategy: Buying large volumes at reduced margins to offer competitive prices.

Disjunctive Model: Consumers choose products that meet their primary needs, not necessarily all features.

Exclusive Distribution: Used by luxury manufacturers, limiting product availability to select stores, sometimes as part of a business partnership or investment.

Physical Distribution: The storage, handling, and movement of goods within an organization and their delivery to consumers.

Intensive Distribution: Making a product available in as many places as possible, primarily for frequently repurchased items.

Selective Distribution: Limiting product availability to a few stores, typically for specialty or luxury goods.

Distribution Incentives: Manufacturer promotions offered to distribution channels to encourage product promotion, often for new product launches (must be disclosed).

Distributor Brands (Private Label): Trade names used by distributors to compete with manufacturers and offer competitive prices.

Diversification (Lateral): Expanding business activities into unrelated commercial areas.

Diversification (Growth Strategy): Seizing opportunities outside the current business, often when targeting a new market with a new product.

Divestment Strategy: Selling off unprofitable parts of a business.

Dominance Model: Consumer choice based on the number of positive attributes a product has, especially compared to competitors.

Dual Brand Loyalty: Consumers consistently purchasing from one of two preferred brands.

Durable Goods: Products that provide service over repeated uses.

E-Commerce: Buying and selling products, services, and information electronically.

Economic Indicators: Factors like inflation, stock market performance, and GDP, used to understand market trends and inform strategy.

Economic Value to the Customer: Calculating product cost versus benefits received by customers.

Efficiency Index (Marketing): Measuring efficiency between marketing spend, audience reach, and sales.

E-Loyalty: A positive attitude toward an online retailer, leading to repeat purchases, recommendations, and interaction.

E-Marketplace: An online platform for goods and services among a diverse community of buyers and sellers.

Endorsement (Backrest): A public figure supporting a product or brand.

Lifestyle: A pattern of living based on needs, perceptions, attitudes, interests, and opinions; an important variable for market segmentation.

Competitive Strategies

Three basic types of competitive strategies:

• Cost Leadership Strategy: Achieving lower costs in production and distribution.
• Differentiation Strategy: Aiming to be superior to competitors in a specific area.
• Focus or Niche Strategy: Concentrating on specific market niches, allowing for deep customer understanding.

Horizontal Diversification Strategy: Offering attractive products to existing customers, even if unrelated to the current product line.

Part of Marketing Strategy

A Marketing Plan outlines guidelines for achieving objectives, including marketing mix distribution and budget allocation.

Nominal Value: The stated value of a product or service.

Face-to-Face Sale: A personal and direct sales interaction.

Declining Demand: Consumers progressively losing interest in a product.

Family Brand: Products developed by a single company sharing the same brand name.

Fast-Moving Consumer Goods (FMCG): Everyday consumer goods.

Fishbein Model: Consumers may purchase a product if its features are deemed appropriate, even if the price isn't ideal.

Quick Count: Accounting for responses in a direct mail campaign to assess its success.