Marketing Jargon Compendium (Collector's Edition)

Channel: A channel usually refers to a water channel or ditch, which is a passage for water flow. But now it has been introduced into the business field, extended to mean the sales route of goods, the circulation route of goods, referring to the manufacturer's goods sold to different regions through a certain social network or agents to achieve sales purposes. Therefore, the channel (marketing channel) is also called a network. Channels can be divided into long channels and short channels. According to the level of intermediary involvement, distribution channels are divided by the number of levels, such as zero-level channels, first-level channels, second-level channels, third-level channels. Generally speaking, the longer the channel, the greater the possibility of expanding the product market, but the lower the control over product sales and the clarity of information feedback. The design of the channel directly affects the company's revenue and development. Zero-level channels are the main channels for large or valuable products and products with complex technology that require specialized services. In zero-level channels, products or services are sold directly by the producer to the consumer. Marketing channels refer to the path through which products or services are transferred, consisting of all organizations involved in the transfer activities to make the product or service easy to use or consume. Marketing channels can be divided into manufacturer-led, retailer-led, service provider-led, and other forms based on the dominant member. The fundamental task of marketing channels is to connect producers with consumers or users, so that the products produced or services provided by producers can be delivered to the right people at the right time, in the right place, in the right form. Modern channel theory has gradually flattened from the original long-line channels. Traditional channels consist of distributors, first-level wholesalers, second-level wholesalers, and terminal stores, with profits divided among the channel. More and more enterprises are abandoning first-level and second-level wholesalers and directly controlling terminals, which is conducive to product distribution and moderately attacking competitors in the channel. Controlling the channel can be said to be a necessary means of doing marketing well, and there is even a saying that "the channel is king." GT refers to traditional circulation channels (wholesale markets, ordinary supermarkets) AFH refers to away-from-home channels (hotels, restaurants, joint promotions, factories, custom products, etc.) OTCR: Modern channel sales representative CR-TT: Sales Representative - Traditional Channel CR-MT: Sales Representative - Modern Channel Multi-channel sales refers to selling our products through different sales channels. Modern channel definition: Originated in the early 1990s, generally refers to the intensive circulation link from manufacturer to consumer, mainly including large international hypermarkets, warehouse-style chains, specialty stores, etc. Traditional channel definition: Originated in the late 1970s, generally refers to the fragmented circulation link from manufacturer to consumer, narrowly referring to mom-and-pop stores, grocery stores, circulation retail stores, etc. Modern channels are represented by supermarket systems. Traditional channels are represented by wholesale channels. Channels generally include traditional sales channels and modern sales channels. Traditional sales channels mainly include: stores. Modern sales channels mainly include: hypermarkets, supermarkets, the Internet, etc. Doing channels refers to the development and maintenance of channels. The specific work content is roughly: channel entry, channel promotion, channel control, etc. Channel terms: Hypermarket: A hypermarket is a type of retail venue, generally with a large sales area and a complete range of products. Many hypermarkets combine warehouse retail forms. Hypermarkets are key protected customers for enterprises. Supermarket: A general term for department stores and supermarkets. Generally speaking, department stores include department stores, specialty stores, and exclusive shops; supermarkets are divided into warehouse-style supermarkets, chain supermarkets, convenience stores, etc. Convenience store: A type of retail store, usually with a small area, mainly operating daily necessities, often chain-operated, and often open 24 hours. Street sweeping: In a specific regional market, to achieve the goal of full product distribution, the activity of distributing, displaying, and activating products in all retail stores in the area. Commonly used for products with high purchase frequency and already detailed market segmentation. The method is to divide the area into different sections, and business personnel visit or organize products one by one according to the regional route. This method ensures no store is missed, hence called "street sweeping." Promotion: Promotion is the use of various short-term incentive tools to stimulate consumers and intermediaries to purchase a specific product or service quickly and/or in larger quantities. Promotion is one of the promotional means. Product arrangement: Product arrangement is a supervision and promotion behavior of the enterprise at the product sales terminal. It is achieved through regular visits by the enterprise's business personnel. During the visit, it is necessary to register the sales of the enterprise's products at the sales outlet, count sales and inventory information, so as to replenish goods in time. When arranging products, it is necessary to help the sales outlet maintain the placement, display, and activation of products, with the aim of enabling the product to be sold smoothly. Route arrangement: In the operation of product arrangement, the visits of enterprise business personnel need to follow a certain route order to save time and more comprehensively take care of all sales outlets. Shopping guide: Shopping guide is a behavior in which the enterprise sets up sales personnel at the sales terminal to recommend their own products and help consumers choose suitable products according to their needs. Store activation: The vivid processing of product display, layout, atmosphere creation, etc. These treatments not only pay attention to the coordination between the product and promotional tools in the store, but more importantly, the placement of the product itself, which can make consumers have different purchasing mindsets. First-level market: The first-level market, relative to the enterprise's products, is the key market of the enterprise, characterized by strong demand. Second-level market: The second-level market is the market second only to the first-level market. Exclusive terms for FMCG enterprises: SKU: SKU = stock keeping unit, which is the unit of measurement for inventory in and out, can be in pieces, boxes, pallets, etc. SKU is a necessary method for logistics management of large chain supermarket DC (distribution center). Now it has been extended to refer to the abbreviation of product unified numbering, each product corresponds to a unique SKU number. Supplement: The full English name is stock keeping unit, abbreviated as SKU, defined as the smallest available unit for inventory control, for example, in textiles, a SKU usually represents: specification, color, style. STOCK KEEP UNIT. This is a method for customers to number and classify goods after putting them in the warehouse. Usually it is like SKU#: 12356. It is also translated as inventory unit, stock unit, inventory unit, cargo storage unit, inventory preservation unit, unitized unit, single item, variety, and based on business, it can also be the smallest retail unit, smallest sales unit, smallest management unit, inventory counting unit, etc.; in professional logistics terminology, it is explained as "cargo grid." In other words, to help understand: First, we should understand the definition of a single item, which refers to a type of commodity with specific natural and social attributes. For a commodity, when its brand, model, configuration, grade, color, packaging capacity, unit, production date, shelf life, purpose, price, origin, and other attributes differ from other commodities, it can be called a single item. In chain retail stores, a single item is sometimes called a SKU (Chinese translation: minimum inventory unit, full English name: stock keeping unit, abbreviated as SKU, defined as the smallest available unit for inventory control, for example, in textiles, a SKU usually represents specification, color, style). Of course, the concept of single item is different from the traditional "variety" concept. Using the concept of single item can distinguish different attributes of different commodities, thus providing great convenience for commodity procurement, sales, logistics management, financial management, and the development of POS systems and MIS systems. For example, a single can of Coca-Cola is a single item SKU, while a whole pack of Coca-Cola is another single item. These two single items are different in inventory management and sales. In the traditional sense, canned Coca-Cola is a variety, regardless of its sales model. It is not difficult to see that in both foreign and domestic definitions and explanations, there are basically three concepts: item, code, and unit. These three concepts represent three aspects:

Item: The item can be understood in conjunction with the above explanations of single item, SKU, and variety. That is, as long as the attributes are different, it is a different item (SKU). This can be said to be an analysis and understanding of SKU as a product. There are many attributes, and it is easy to understand that brand, model, configuration, grade, color, production date, shelf life, purpose, price, origin, etc., because they can be intuitively distinguished; but packaging capacity, unit, storage location, etc. are not so easy - is it not the same product if one is placed in a box, and a box is placed on a pallet? Is the same product different if placed in Asia and America? That is to say, as long as the same product has different ways of preservation, management, sales, and service, then it (SKU) is no longer the same.
Code: This concept is based on information systems and goods code management. As introduced in "Item," different items (SKUs) have different codes. In this way, we can analyze inventory and sales status based on different SKU data. When you use logistics or ERP systems, you will find text boxes like SKU#: 12356. This long-term situation has led many friends to think that SKU is the product code. But here the product, as mentioned in "Item," is not a general product concept, but a very precise product concept.
Unit: Basically, it is based on management, and this name is a product of digital management methods. But what is the difference between this unit and our usual "unit"? Look at the different packaging units of products, and the SKU is different - then you know. That is to say, management precise to SKU can adapt to the current logistics competition. In fact, I think the use of information systems has had a great impact on it. Without precise codes to distinguish different SKUs of the same product, it is difficult to manage in units of SKU. Common terms for market promotion I. Promotional terms in promotion What is promotion? Many people doing marketing are still vague about it. It is a job that inspires consumer demand and makes them desire a certain product.
Promotion (SP): Promotion refers to the general term for various activities that an enterprise can promote product sales within a certain period through overall planning based on market conditions and its own conditions. Promotion is a component of promotion. The main methods of promotion include: advertising, sales promotion, personal selling, and public relations.
Promotional activities: Promotional activities are a form of promotion, which is time-limited, using one or more forms to stimulate consumers to buy products in a time-limited game, using on-site or off-site methods, often increasing the added value of the product as the main stimulus.
Personal selling: A one-on-one sales method using individual personnel, which can be achieved by one person. In the professional sales process of enterprises and at the closest distance to consumers, enterprises also use selling methods to promote sales.
Sales promotion: There are many ways of sales promotion, such as promotion can be called sales promotion, and personal selling can also be called sales promotion. In marketing behavior, product placement, market activation, advertising, channel policies, including rewards for business personnel, can all be called sales promotion behaviors.
Channel sales assistance: As the name implies, it is a behavior that helps channel members sell. The general method is: the enterprise sends people to help first-level or second-level channel members distribute products faster, making channel members more confident in the product, thereby achieving a higher enthusiasm sales state.
Bundled sales: When selling a product, selling another product together; or giving a product when selling a product; or combining related products of this product into a product series for sale, all belong to bundled sales behavior.
Profit concession promotion: It is a behavior of selling a product at a price lower than the original price. Profit concession promotion not only occurs in the business of enterprises to channel members, but also in stores. Enterprises generally use festivals, off-peak and peak season transitions for product profit concession promotions.
Advertising rewards: Advertising rewards mostly occur in the marketing behavior of enterprises to distributors. Distributors are the spokespersons of the enterprise in a region, responsible not only for sales in the region but also for market construction in the region. Therefore, enterprises will use advertising rewards to promote distributors to sell more products and better build and improve the market. Advertising rewards can be carried out in various ways, such as: selling a certain amount, rewarding a certain amount of advertising expenses; or using advertising subsidies; or deducting from payment collection.
Public relations: Public relations behavior is not the handling of interpersonal relationships as we usually imagine. In marketing behavior, public relations occurs everywhere, such as: public relations for distributors, public relations for the media; public relations for business personnel; public relations for consumers; public relations for product sales; public relations for brand promotion; in short, public relations is an indispensable part of the daily business operations of enterprises.
On-site promotion: On-site promotion refers to promotional behaviors at the sales site, generally using methods such as on-site lottery, scratch cards, buy and give, etc. II. Terminal promotion control A
Street sweeping: In a specific regional market, to achieve the goal of full product distribution, the activity of distributing, displaying, and activating products in all retail stores in the area. Commonly used for products with high purchase frequency and already fully segmented markets. The method is to divide the area into different sections, and business personnel visit and arrange products one by one according to the regional route, with the aim of not missing any store, hence called street sweeping.
Deep cultivation: According to the characteristics of the product and consumers' purchasing habits, comprehensive measurement and setting work for retail outlets at all levels in terms of distribution, display design, role design, target design, etc., to achieve the best position of the product in the market for consumer contact. Commonly used for fast-moving consumer goods with high purchase frequency and fully segmented markets. The meaning of deep cultivation is that each level of store is set with different responsibilities. Generally, many small stores are difficult for enterprises to take care of, so deep cultivation can also be understood as an increase in the responsibility of the enterprise.
Extensive: Relative to deep cultivation, product manufacturers do not fully directly participate in retail site sales, and do not set more responsibilities for sellers, but natural circulation. The method is to sell products through distribution channels such as distributors and wholesalers, and manufacturers generally do not directly face the retail site.
Promotion: Promotion refers to the use of various short-term incentive tools to stimulate consumers and intermediaries to purchase a specific product or service quickly and/or in larger quantities. Promotion is one of the promotional means. Common promotional tools are divided into three categories: consumer promotion, trade promotion, and sales force promotion.
Product arrangement: Product arrangement refers to the supervision and promotion behavior of the enterprise at the product sales terminal - store sales. It is achieved through regular visits by the enterprise's business personnel. During the visit, it is necessary to register the sales of the enterprise's products at the sales outlet, count sales and inventory information, so as to replenish goods in time. When arranging products, it is necessary to help the sales outlet maintain the placement, display, and activation of products, with the aim of enabling the product to be sold smoothly.
Route visits: In the behavior of product arrangement, the visits of enterprise business personnel should be arranged according to a certain route to save time and more conveniently and comprehensively take care of all sales outlets. Enterprises will arrange different routes in a region and arrange multiple business personnel to visit separately according to time division. III. Terminal promotion control B
Shopping guide: Shopping guide is a behavior in which the enterprise sets up sales personnel at the sales terminal to recommend their own products and help consumers choose suitable products according to their needs. Generally, durable consumer goods use this behavior more.
Consultative selling: This is a behavioral manifestation of sales. It can be used in direct sales, and can also be achieved through shopping guide behavior at the sales terminal. It mainly involves a sales technique that helps choose from the consumer's perspective during the product recommendation process. This technique can also be placed in other sales service forms.
Activation: It is through effective environmental planning, atmosphere creation, product display, and other means to make the enterprise's products at the end channel, i.e., the point of sale, attract consumers to visit, stimulate consumers' purchase desire, and ultimately promote consumer purchase, achieving a rapid increase in overall sales.
Store activation: The activation of independent stores (such as specialty stores, product counters in department stores, etc.), and the vivid processing of product display, layout, atmosphere creation, etc. within these areas. These treatments not only pay attention to the coordination between the product and promotional tools in the store, but more importantly, the placement and treatment of the product itself. The placement and treatment of the product can make consumers have different purchasing mindsets, so enterprises need to train business personnel to learn activation and methods.
End display: The placement of products at the sales terminal should be carried out in a way that consumers accept, called end display. It is necessary to summarize the rules and methods of placement according to the conditions of the store and the feelings of consumers, while considering the packaging elements and appeal elements of the product, and display them in a way that is easier for consumers to see and more convenient to accept.
End: End is also called terminal, which is the closest distance to consumers in sales behavior, generally referring to the store. Basic retail terms Bar code: An internationally used symbol to represent certain product information. Generally printed on the outer packaging of goods, it is a pattern of black and white stripes. In-store code: A bar code printed internally by the supermarket, used when there is no bar code on the product or the product bar code is damaged for various reasons. In-store codes are applied for printing at the receiving department. Fresh bar code: The price bar code of weighed goods, printed when weighed by an electronic scale. POS (point of sales): Sales information management system, mainly performing cash register functions. Its basic components are: product bar code, POS cash register system, background computer. Also called a single cash register. Pallet: A wooden or plastic board used for transporting goods. (There are wooden pallets and plastic pallets) Palletizing: Combining goods from two or more pallets onto one pallet in an organized manner. Pulling the display: When the goods are not fully displayed on the shelf, use the first-in-first-out principle to move the goods forward to make the display full and abundant. Picking up: Picking up scattered goods abandoned by customers in various corners. Checkout end cap: The shelf in front of the checkout counter used to display goods. First-in-first-out: Advanced goods are sold first. Stack head: Also called "promotion area," usually stacked with pallets, iron baskets, or turnover boxes. Counter: A glass cabinet used to display valuable goods in the boutique area and tobacco and alcohol area. Stacking goods: Stacking or placing goods. Changing the shift: The replacement of products in two consecutive issues of the newsletter. The display and price of the corresponding newsletter products must be changed. Price change: Changing the retail price or purchase price of a product. Price tag: A sign used to indicate the selling price of a product. Price tags must be printed on company-designed paper using a computer, not handwritten. Replenishment: The operation of the merchandiser replenishing out-of-stock goods to the shelf at regular or irregular times according to the specified display position of each product. Out of stock: The inventory of a product is zero. Exchange: Customers or the mall exchange purchased goods with the mall (manufacturer) according to relevant regulations. Tasting: On-site processing of some promotional foods and letting customers taste them on the spot. Clearance: To clear remaining goods, price reduction processing activities. Membership card: A voucher for membership qualifications. Slow-moving: Refers to the phenomenon that product sales effect is not obvious or difficult to sell. Best-selling: Refers to the phenomenon that product sales effect is good or easy to sell. Flat sales: Refers to the phenomenon that product sales effect is neither good nor bad. Scrap: Goods that cannot be sold due to deterioration, broken packaging, or damage, and need to be treated as waste. Demagnetization: The work of removing the magnetic property of the anti-theft code attached to the product during the cash register process. Inventory count: Regularly counting the products in the store to accurately grasp the operating performance and inventory situation during the period. Inventory: Refers to goods that have not yet been sold. Gift: To stimulate sales, give a certain amount of goods as gifts to customers who purchase a certain amount of the product. Order number: The number of each batch of purchase orders from suppliers. Negative inventory: The sales volume on the books is greater than the inventory on the books, usually due to computer input errors, loss, damage, etc. Ping efficiency: Refers to the sales per unit area. Meter efficiency: Refers to the sales per meter on the straight line of the sales surface on the supermarket shelf. Product turnover rate: Average product sales divided by average inventory. Product inventory cycle: Average product inventory divided by average sales, calculated in days. Supermarkets generally use the product inventory cycle to control the use of funds and strengthen the control of product sales time. Shelf: The main area in the mall for storing goods, which makes shopping orderly and reflects the mall's business model. Shelves can be divided into sales area, display area, and storage area. End cap: Located at both ends of the shelf, used to display a large number of products for sales and storage. Sales unit: The quantity of a product sold to a customer. A sales unit can have different packaging quantities. Price label: Attached to the corresponding product, including: product number, product description, origin, specification, grade. Composite packaging: The supplier puts several products together as a packaging for one sales unit. Impulse shopping: Shopping behavior beyond the planned purchase. Display item: Sales sample, should be complete, operable, clean, and safe. Safety passage: The fire passage reserved in the design of the supermarket building to deal with emergency evacuation. Refrigerated cabinet: A cold cabinet used to display goods that need refrigeration, with a temperature of 0°C to 5°C. Freezer cabinet: A cold cabinet used to display frozen food, with a temperature below -18°C. Fresh-keeping warehouse: A cold storage used to store food that needs refrigeration, with a temperature of 0°C for meat and below 10°C for vegetables. Promotion cart: A cart specially used for displaying and tasting activities in supermarkets. Group purchase: One-time large quantity purchase. High inventory: Refers to the excessive difference between product inventory and sales volume. Causes: out-of-season products, inaccurate ordering, high prices, special circumstances, problem products. Passage and channel Circulation: Refers to the process of transferring products from the manufacturer (producer) to the user (consumer); and all manufacturers participating in this transaction process constitute the so-called "channel," also known as "marketing channel" or "distribution channel." Functions of the channel: The manufacturers in the channel provide more added value to the circulating goods. Channel manufacturers provide one or more of the following functions:
Repackage the large quantities of products produced by producers into small quantities that general consumers can buy at retail.
Allocate the types of products needed by consumers.
Perform the function of storage after the product is manufactured and before the consumer purchases it.
Transport the product to a place where consumers can buy it.
Provide product information to consumers and also provide market information from consumers to manufacturers. Main members of the channel Retailers The so-called "retail" refers to all activities that directly sell products or services to customers for their personal or household final use. Retailers exist because they can bring additional value to customers: such as a good shopping environment, providing products of reputable brands, explanations by sales personnel, convenience of location, etc. Wholesalers The so-called "wholesale" refers to all activities that sell products or services. The sales target must be "people or organizations that are ready to resell the product or service" or "people or organizations that use the product or service for other commercial purposes," not final consumers or household units. "Wholesalers" refer to organizations mainly engaged in wholesale activities. Common terms for the marketing department (1) I. Market concept terms
Market: The market is a kind of interest demand of a group of people, a common demand of a group of people with common characteristics for the core interests of a certain product.
Marketing: The complete process of an enterprise or profit-making group or organization to inspire and satisfy the needs of a specific group of people. Inspiring demand: Let consumers realize that they have needs and need this product. Satisfying demand: Let consumers be able to buy or accept this product.
Demand: A consumer's purchase idea and desire for a specific product that they have the ability to buy and are willing to buy. Only desires that simultaneously meet the conditions of ability to buy and willingness to buy can be called demand.
Explicit demand: Explicit demand refers to the demand that consumers can clearly describe and actively propose (for example, consumers may directly say: I am thirsty, I want to drink water; I need a sweater, etc.); enterprises should focus on grasping and understanding consumers' explicit needs.
Implicit demand: Implicit demand refers to the demand that consumers do not directly propose and cannot clearly describe. This kind of demand is often proposed by producers based on technological development, prediction of market changes, etc. This demand needs guidance. Enterprises should stimulate consumers' implicit needs, and better understand and experience customers to better meet consumers' implicit needs.
Potential market: A potential market refers to a situation where a considerable number of consumers may have a strong desire for certain items, but existing products or services cannot meet this demand. At this time, this part of the demand constitutes a potential market. One of the tasks of marketing is to measure the scope of the potential market and develop effective goods and services to meet these needs.
Market potential: Refers to the limit quantity that market demand tends to when marketing efforts reach infinity in a given environment for a specific product category or industry. Market potential is an estimated value. In actual combat operations, the final market capacity is often smaller than the estimated market potential. II. Market behavior terms
Impulse buying: The behavior of consumers buying immediately under a momentary impulse. Impulse buying behavior is related to the personality characteristics of consumers. Generally, women are more prone to impulse buying than men; some product categories are also prone to impulse buying, such as cosmetics, beverages, clothing, etc.
Rational consumption: Relative to impulse buying, rational consumption refers to the purchase decision made by consumers after careful analysis, comparison, and research, and the purchase behavior that occurs. Correspondingly, men are more rational in consumption; when purchasing products with high unit price or strong functionality, consumers are also more rational.
Brand loyalty: Brand loyalty refers to the phenomenon that consumers first feel satisfied with a certain brand of product, and then show a loyal attitude to this brand when choosing this type of product. Brand loyalty generally refers to fast-moving consumer goods. Durable consumer goods have relatively weak brand loyalty due to low purchase frequency.
Decision-making group: The group with purchase decision-making power, who decide the product category, brand, time, how to buy, how much to buy, etc. The purchase decision-maker is not necessarily the user of the product. For example, the decision-maker for baby products is often the mother; the purchase decision-maker does not necessarily directly buy the product; the decision-maker may be a single person or multiple people making decisions together.
Purchasing group: The person who implements the purchase behavior (when a child and mother choose children's food in the mall, the child can choose the food they like, at this time the child is the decision-maker, and the mother is the actual purchaser).
Promotion group: The promotion group is for the promotion work of the enterprise, the question of who to promote to. For example, the advertising promotion group, promotion promotion group, etc. The promotion group can be the user, purchaser, decision-maker, influencer, or none of these. The scope of the promotion group should be determined according to the enterprise's marketing and advertising strategy. III. Market strategy terms (1)
STP marketing: The core of modern marketing strategy, called STP marketing. STP is the abbreviation of English Segmenting, Targeting, Positioning, Chinese: market segmentation, target market selection, and positioning. That is, under the idea of differentiated marketing, segment the market and find a reasonable market position in the selected target market.
Differentiated marketing: Refers to the behavior of designing a series of meaningful differences to distinguish the company's products from competitors' products. Enterprises use differentiated marketing because consumers have different preferences and tendencies, and over time, consumer preferences will also change. Differentiation can give consumers more choices.
Market segmentation: Define some characteristics, and divide the entire market into many market segments according to these characteristics (for example, the market can be segmented according to variables such as consumer gender, age group, occupational characteristics, lifestyle habits, etc.).
Market segments: The small markets divided according to various variable characteristics are called market segments (for example, in the juice beverage category, concentrated juice, low-purity juice, pulp drinks, etc. can be subdivided to suit different consumers' tastes, drinking habits, drinking occasions, etc.).
Target market: After dividing the market segments, the enterprise should determine which market segment or segments to enter based on the characteristics of the product, resource status, and the status of each market segment. These selected market segments are called target markets.
Market positioning: The concept formed in the minds of consumers in each target market for the product. Positioning can explain to consumers the difference between this product and competing products. It is the core of the product fax provided by the company to consumers, and consumers will also use this as a basis to understand the brand and the providing enterprise of this product.
Market research: Research work to collect and analyze consumer information, market information, and marketing decision results. Common market research contents include: market potential analysis, market share analysis, competition analysis, sales analysis, regional market analysis, etc. Common market research methods include: telephone interviews, questionnaires, door-to-door interviews, group interviews, etc.
Marketing audit: A comprehensive, systematic, independent, and periodic examination of a company's or business unit's marketing environment, objectives, strategies, and activities, with the aim of determining the scope of problems and opportunities and proposing action plans to improve the company's marketing performance. IV. Market strategy terms (2)
Market share: Market share is one of the important indicators to consider the competitive position of an enterprise or brand. It refers to the percentage of the company's products or brands in the overall market sales within a certain market range.
Competitive products: Products that have a competitive relationship with the enterprise's products. The scope of competitive products includes: other brands in the same product category as the enterprise's products, and other categories of products that have a substitution relationship with a certain product.
4P: The 4P in marketing is the abbreviation of the four major combination elements of traditional marketing. The 4P refers to Product, Price, Place (channel, passage), and Promotion.
4C: The four major marketing factors proposed in recent years. The 4C refers to Consumer, Communication, Cost (cost, value), and Convenience. The proposal of 4C reflects the deepening of customer and service concepts in modern marketing; 4C pays more attention to consumer feelings and the thoughts of consumers when purchasing products, rather than the 4P era's purpose of conveying and informing the enterprise's product interests.
Integrated marketing: Integrated marketing refers to the marketing state when all departments of the company can serve the interests of customers. The result of doing so itself constitutes integrated marketing. To achieve integrated marketing, first, various marketing functions - sales personnel, advertising, product management, marketing research, etc. - must coordinate with each other; second, the marketing department must coordinate well with other departments of the company.
Relationship marketing: Relationship marketing refers to the marketing practice of establishing long-term satisfactory relationships with key members of the company (customers, suppliers, distributors, etc.). The purpose is to maintain long-term performance and business. The final result of relationship marketing is to establish the company's marketing network. The focus of relationship marketing should be on: (1) Maintaining customers (2) Maintaining long-term continuous contact with customers (3) Focusing on customer value (4) Emphasizing the degree of customer service (5) Committing to meeting customer expectations (6) All enterprise personnel pay high attention to quality
Market leadership strategy: It is a form of competitive strategy. Most industries have a recognized market leader company that holds the largest market share in the market for related products. Usually, it plays a leading role in price changes, new product introductions, distribution coverage, and promotion intensity. Companies adopting market leadership strategies include General Electric, Kodak, IBM, Procter & Gamble, etc.
Market followership strategy: Participate in competition but do not disrupt the market situation. Companies occupying second, third, and later positions in the industry can be called followers or follower companies. Within their strength range, some companies can be quite large, such as Colgate, Ford, Westinghouse Electric, PepsiCo, TCL, Konka, etc.
Expanding the market: Expansion market activities in market areas that the enterprise or brand has not developed or explored. The concept of this market may be geographically undeveloped or a specific undeveloped group of people. Expanding the market is a competitive market strategy.
Building the market: The purpose of building the market is to consolidate the existing market of the enterprise or brand and maintain market share. This is a defensive market strategy. Common terms for promotion I. Promotional terms in promotion What is promotion? Many people doing marketing are still vague about it. It is a job that inspires consumer demand and makes them desire a certain product.
Promotion (SP): Promotion refers to the general term for various activities that an enterprise can promote product sales within a certain period through overall planning based on market conditions and its own conditions. Promotion is a component of promotion. The main methods of promotion include: advertising, sales promotion, personal selling, and public relations.
Promotional activities: Promotional activities are a form of promotion, which is time-limited, using one or more forms to stimulate consumers to buy products in a time-limited game, using on-site or off-site methods, often increasing the added value of the product as the main stimulus.
Personal selling: A one-on-one sales method using individual personnel, which can be achieved by one person. In the professional sales process of enterprises and at the closest distance to consumers, enterprises also use selling methods to promote sales.
Sales promotion: There are many ways of sales promotion, such as promotion can be called sales promotion, and personal selling can also be called sales promotion. In marketing behavior, product placement, market activation, advertising, channel policies, including rewards for business personnel, can all be called sales promotion behaviors.
Channel sales assistance: As the name implies, it is a behavior that helps channel members sell. The general method is: the enterprise sends people to help first-level or second-level channel members distribute products faster, making channel members more confident in the product, thereby achieving a higher enthusiasm sales state.
Bundled sales: When selling a product, selling another product together; or giving a product when selling a product; or combining related products of this product into a product series for sale, all belong to bundled sales behavior.
Profit concession promotion: It is a behavior of selling a product at a price lower than the original price. Profit concession promotion not only occurs in the business of enterprises to channel members, but also in stores. Enterprises generally use festivals, off-peak and peak season transitions for product profit concession promotions.
Advertising rewards: Advertising rewards mostly occur in the marketing behavior of enterprises to distributors. Distributors are the spokespersons of the enterprise in a region, responsible not only for sales in the region but also for market construction in the region. Therefore, enterprises will use advertising rewards to promote distributors to sell more products and better build and improve the market. Advertising rewards can be carried out in various ways, such as: selling a certain amount, rewarding a certain amount of advertising expenses; or using advertising subsidies; or deducting from payment collection.
Public relations: Public relations behavior is not the handling of interpersonal relationships as we usually imagine. In marketing behavior, public relations occurs everywhere, such as: public relations for distributors, public relations for the media; public relations for business personnel; public relations for consumers; public relations for product sales; public relations for brand promotion; in short, public relations is an indispensable part of the daily business operations of enterprises.
On-site promotion: On-site promotion refers to promotional behaviors at the sales site, generally using methods such as on-site lottery, scratch cards, buy and give, etc. II. Advertising terms in promotion Advertising is the activity of conveying product information and sales information to appropriate target consumers at the right time, in the right way and cost, with the help of appropriate carriers, under clear goals. Advertising is an important part of the overall market plan and one of the means of promotion. Advertising narrows the distance between the product and the consumer's mind and psychology.
Soft advertising: A non-direct advertising method, manifested as interviews, reports, boss stories, event utilization, etc. in newspapers or television. It seems not to appear as advertising, but actually plays the role of advertising or public relations.
Hard advertising: An advertising form that directly appears in the media, directly with the product or brand as the core expression content, informing and promoting the product or brand to consumers.
Appeal: The statement of the benefits that advertising brings to consumers for the product. It includes the content of the appeal, the way of the appeal, and the object of the appeal, that is, what the advertisement says, to whom, and what to say. Appeal is to tell consumers their needs, not to tell them what you have; appeal is generally through a sentence or a classic language to let consumers feel, rather than in a way that lets consumers understand.
Emotional appeal: In marketing advertising, the information transmitted by advertising can be emotional or rational. Emotional appeal refers to evoking strong emotions and feelings (such as excitement, pity, anger, fear, etc.) in the audience through some metaphor or hint in the advertisement, thereby attracting their attention. For example, fear appeal is a typical example of emotional appeal.
Rational appeal: Rational appeal refers to emphasizing the attribute characteristics of the product in advertising, and describing the reasons for consumers to buy through a certain logic. Rational appeal advertising hopes for consumers and rational shopping motives, such as logical judgment.
Unique Selling Proposition: The advertising concept vigorously promoted by the famous American advertiser Rosser Reeves, abbreviated as USP. According to Reeves, USP has three rules: first, you must have a clear proposition, that is, you can get specific benefits by buying this product; second, this proposition must be unique, which other competitors cannot provide or do not provide; third, this proposition must help sales.
Creativity: After analyzing and organizing the content that advertising needs to express, the creative and conception process of expressing the selling point of the product or brand, the concept of the product or enterprise in a way that can be recognized by consumers and with strong appeal. Creativity is carried out under the conditions that conform to the reality of the product and the conditions of the times, that is, it is a free flight within a rule. Not following the rules is not called creativity, but fantasy.
POP advertising: Abbreviation of Point of Purchase Advertising, meaning point-of-purchase advertising, referred to as POP advertising. It is roughly divided into four types: one is hanging POP advertising, the second is product price card and display card POP advertising, the third is product-combined POP advertising, and the fourth is large shelf-type POP advertising. All advertising objects set up in commercial spaces, shopping places, around and inside retail stores, and where goods are displayed belong to POP advertising.
DM advertising: Abbreviation of Direct-mail-advertising, an advertising form directly sent to potential customers through mail, E-MAIL, etc. Now the promotional leaflets of stores, street flyers, etc. all belong to DM advertising.
CF advertising: Usually refers to advertising made with film and used for broadcasting on media, such as movie trailers, TV commercials, multimedia advertising, etc. Since TV advertising is the most common, CF sometimes replaces TV commercials, although TV commercials are also often abbreviated as TVC. III. Terms in advertising A
Focus advertising: Set up in front of the selling point, near the selling point, or inside the store, mainly in the form of light boxes, flat road signs, and stall combinations, used to attract passersby and establish an image of the advertising tower. Focus advertising is not an independent form of a certain advertisement; it may be an advertisement composed of a group of market tools, or it may be a store decoration form to achieve advertising effects. Like street newsstands, cold drink stalls, etc., can be combined into focus advertising forms.
Print advertising: From the perspective of design and production, all static, two-dimensional advertising forms are called print advertising.
Media: In marketing, media refers to the intermediary used to transmit information between product producers and potential customers. Simply put, media is a series of communication tools, such as newspapers, magazines, television, etc. Media can be divided into: print media, electronic media, digital media, outdoor media, etc.
Media analysis: The analysis and consideration of publishing media by advertising planners or media planners for advertising goals and strategies. Media analysis includes the following contents: media type analysis, media communication effect analysis (including both quality and quantity levels), media audience analysis, media geography analysis, etc.
Media plan: A set of media arrangement arrangements for advertising strategy and plan. This step includes: ★ Determine the expected reach, frequency, and impact ★ Select the main media types ★ Select specific communication media tools ★ Determine the communication time and determine the geographical media allocation
Media combination: Media combination refers to the combination state of using more than two media or using more than two publishing forms of the same media in a period of time in the advertising publishing plan. There is no right or wrong form of media combination. The way to consider right or wrong is the result of the media combination relative to the possible information frequency that the product's consumers may accept in a relative time. Therefore, media combination is to let consumers accept a reasonable number of information in a relative time.
Cost per thousand: Cost per thousand is one of the common indicators for evaluating media communication effects. It refers to the cost of a medium reaching one thousand audiences.
Gross rating points: Add the audience ratings of a specific carrier at different time periods to get the total audience rating it delivers, which is what we often call gross rating points, also called total audience rating. This indicator is obtained by multiplying the reach number and exposure frequency (that is, the total number of viewers of an advertisement multiplied by the average number of views per viewer). To calculate gross rating points, you can also use the formula: GRP = reach rate (%) * average exposure frequency IV. Terms in advertising B
Media buying: The purchase of time, form, and space for specific advertising media. This is an important part of the company's advertising media activities.
Broadcast media: Broadcast media, also called electronic media, refers to media categories such as radio and television that transmit information through airwaves or electronic circuits.
Advertising weight: Advertising Weight refers to the proportion of advertising in different media or different regions. Advertisers seem to agree with this point: the audiences of different media are different. Those who often read newspapers may not listen to the radio, and those who often listen to the radio have no time to watch TV, so they like their advertising to be "evenly" spread to various media. In fact, those who hold this view often have no basis, just by feeling. We believe that different products may have different choices, and the premise of judgment and decision is consumer research.
Advertising share: Advertising Share, the proportion of advertising done by a certain product brand in a specific market to all brands in the market, also called voice share.
Advertising-to-sales ratio: Advertising-to-Sales Ratio, the percentage of total advertising expenditure in a period to total sales in the same period. This advertising/sales (A/S) ratio can be applied to a brand product, a company, or even the entire industry, and is widely used as a standard measure for formulating advertising budgets. The industry advertising/sales ratio also shows the industry competition situation. After comparing the company's and brand's A/S ratio with competitors, it is easy to guess the opponent's advertising offensive.
Net advertising effect value: A value similar to the advertising effect index (AEI) to evaluate the effect of advertising, but slightly different. The net advertising effect value directly represents: in a period after advertising dissemination, how much of the increase in product sales is due to the communication effect of advertising.
Advertising goals and advertising effect evaluation: The title of a famous article written by Russell Colley in 1961, usually abbreviated as DAGMAR. This article provides a research framework for the difficult-to-grasp advertising goal, that is, how to measure the effect of advertising (and thus determine appropriate advertising costs). To some extent, the only standard for advertising success is the growth of sales, but this is the result of long-term accumulation. In the short term, it can be determined by investigating changes in consumer awareness and attitudes toward the product. This provides research clues for studying the role of advertising in the process of consumers' deepening awareness and trust in a certain product.
Free-standing inserts: FSI refers to advertising single pages, booklets, etc. inserted in newspapers and distributed to consumers with the newspaper.
Word-of-mouth advertising: Every salesperson hopes that customers who buy satisfactory goods will immediately introduce the product to friends and neighbors. This kind of oral advertising is very effective. Common terms for products I. About products (1)
Product: Anything offered to the market that can satisfy a need or desire. Products include tangible items, services, places, organizations, and ideas.
Daily consumer goods A. Fast-moving consumer goods: Fast circulation speed, generally non-durable consumer goods, fast consumption speed, high purchase frequency, relatively cheap, such as beverages, convenience foods, daily washing and care products, etc. B. Durable consumer goods: Durable consumer goods also belong to tangible products. They have a relatively long use time and relatively high prices, such as cars, refrigerators, air conditioners, etc.
Functional products: Functional products refer to products with high technological content, high value, complex product use and operation, or products closely related to consumers' material interests and personal interests, and are more influenced by rational thinking.
Service products: Service products are intangible, inseparable, variable, and perishable, and need to produce results. They generally require more quality control, supplier credibility, and applicability, such as haircuts and financial investment services.
Value: Value refers to the consumer's evaluation of whether a product can meet his various needs. When evaluating the value of a product, consumers mainly consider obtaining and owning the use cost as low as possible.
Product positioning: Positioning is a creative work on existing things. It takes things as the starting point, such as a product, a service, a company, an institution, or even a person... But the object of positioning is not these, but the thoughts of potential customers. That is to say, it is to determine a suitable position for the product or other objects in the minds of potential customers. Once this position is established, it will make people first consider a certain thing positioned here when they need to solve a specific consumption or other problem. Therefore, positioning refers to the enterprise designing its own product and image, and communicating with the target audience by transmitting specific information of the enterprise (organization) or brand, so as to determine a unique and valuable position in the minds of target customers, making the enterprise or brand different from competitors, to occupy the market segment.
Product concept: The core benefit and value that a product provides to customers is the service or benefit that customers really need, that is, the benefits that the product can bring to consumers. II. About products (2)
Product selling point: The benefit point that distinguishes a product from similar products, temporarily supports the growth of product sales, and is outside the core benefits. These benefit points are purchase factors generated around the core benefits of the product. For example, if a product has a very good packaging, this packaging is a selling point; the service benefit of a product is also a selling point of the product. Generally, when enterprises use promotional behaviors, they will add selling points to the product.
Packaging: Refers to the process of designing and producing containers or wrapping materials for products, and also refers to these containers or wrapping materials themselves. Packaging materials themselves include three levels: primary packaging, secondary packaging, and transport packaging.
Product name: It is the name of the product, a label and symbol for the product. For example, "Ganmaotong" on the market is a product name for treating colds, and "Giant" is a name for a bicycle.
Trademark: A trademark is a legal term in business, referring to the words, symbols, and logos registered by a company. Products have trademarks, which are the brand identification symbols we talk about; enterprises have trademarks, which are the brands of the enterprise we talk about.
Differential pricing: Refers to the producer modifying the base price of the product to adapt to differences in customers, products, geographical locations, etc. Generally, enterprises first position their products in the market target, and this positioning determines the price that the product is suitable for or should conform to the group's ability to bear and adapt.
Price elasticity: Price elasticity is closely related to the market demand or demand potential. For example, if the market demand is 10,000 and the price is 1 yuan, when the demand changes to 100,000, the price will correspondingly decrease, and when the demand shrinks, the price will rise. For example, when Galanz microwave ovens were in the rising stage of the product market, the demand increased sharply, and the low-price strategy adopted by the enterprise at that time made good use of price elasticity. If it were not for the market conditions at that time and the low-price strategy was adopted, it would be a price war.
Market penetration pricing: Market penetration pricing is a strategy of the enterprise, and its premise is that this product should be a product that the public may consume. The method of this strategy is that the enterprise mass-produces products according to market and estimated conditions, reduces the production cost of the product, and then mass-launches it to the market, so that the price of the product in the market naturally decreases. This method is called market penetration pricing. III. About products (3)
Skimming pricing: Skimming pricing is generally used during the launch period of a brand-new product. This product contains a certain technical content or a certain patent component. Skimming pricing is to make the profit space of the product larger, and then gradually reduce the price.
Product mix: This is the structure of all products produced and sold by an enterprise, also called variety configuration, referring to a set of products or product items that a specific seller can provide to consumers. The product mix can be examined using the four indicators of width, length, depth, and consistency.
Product line: A group of related products produced by a company, also called a product series.
Product recall: Refers to the manufacturer taking back products that have been sent to wholesalers, retailers, or end users. The typical reason for product recall is that the sold product is found to have defects.
Core product: The core product in the usual sense may refer to the leading product of an enterprise. But in the vocabulary of marketing experts, the so-called core product refers to the core function of a product. It is the intangible benefits and service functions that a product can provide, and it is what customers really buy.
Complementary goods: If the price increase (decrease) of one commodity leads to a decrease (increase) in the demand for another commodity, these two commodities are complementary goods.
Price sensitivity: Refers to the degree of impact of price increases or decreases on product and service sales, also called price elasticity.
Suggested price: Many manufacturers suggest the price at which retailers should sell products, which can help retailers operating in the same market and provide price guidance. It can also determine the price at which manufacturers sell goods to retailers, such as 50% of the suggested retail price.
Inferior goods: Under the condition of constant commodity prices, if consumer demand for the commodity decreases with income increase, this type of commodity is called inferior goods.
Predatory pricing: A pricing strategy that restricts competition by driving competitors or potential competitors out of the market.
False pricing: An unethical and illegal pricing method. Typically, it claims price concessions in the form of "original price 158 yuan, current price 79 yuan," but in fact the "original price" is fabricated, and there is no price concession at all.
Entry-deterring pricing: In a market situation where demand exceeds supply, large companies and brands with market advantages set their products at a very low price to block small competitors from entering the market, thereby protecting their market share. IV. Product planning
Product planning: ★ Product planning refers to the complete process from discovering and researching consumer needs to meeting consumer needs with appropriate products. It includes market demand analysis, product technology research and development, product concept appeal, packaging, promotion, display, channels, etc. ★ The content of product planning mainly includes: design of product benefit points, design of brand benefit points, packaging, channels, logistics, sales, and other aspects of benefit point design and interpretation. ★ The purpose of product planning is to give existing products emotional factors, move consumers and channel members with benefits, and achieve the goal of sales growth.
Product life cycle: Product life cycle refers to the dynamic process of a class of products being born, growing, developing, and declining in the market. Generally, according to the popularity rate of products in the market, it is divided into: introduction period, growth period, maturity period, and decline period.
Product market: Product market refers to the needs of a group of people. For a specific product, the same needs bring specific groups of people together, which constitutes the product market.
Product series: Refers to a series of products composed of each group of different but related product items, which complement each other in function. For example, cameras, lenses, and tripods constitute a product series.
Product line extension: It is a competitive marketing strategy. A company launches many styles of products, often the same brand, to meet the needs of various market segments, while occupying more shelf space to limit the entry of competitors. These products are sometimes called flank products, relative to the leading products.
OEM: OEM, the abbreviation of Original Equipment Manufacture, means "original equipment manufacturer." OEM is commissioned production, which is actually a "contract manufacturing" method. Its meaning is that the brand producer does not directly produce products, but uses its own "key core technology" to design and develop new products and control sales "channels." The specific processing tasks are handed over to other enterprises. The manufacturer undertaking this processing task is called an OEM manufacturer, and the products produced are OEM products. Editor's PS: The editor selected 1067 articles from nearly 1900 articles published in this official account, divided them into 14 categories and 57 knowledge points, systematically made first-line marketing management content into a library for everyone to learn, from market to customer, talking about actual combat and management, all dry goods. Follow the official account and reply with the number "1" to browse and view related content.