Competitive Effectiveness Test 2 Vocab

retrenchment strategy

a strategy characteristic of a company that is reducing its size, usually in an environment of decline (pg. 151)

stability strategy

a strategy that is characterized by an absence of significant change (pg. 151)

competitive strategy

a strategy to position an organization in such a way that it will have a distinct advantage over its competition; three types are cost leadership, differentiation, and focus strategies (pg.152)

competitive intelligence

accurate information about competitors that allows managers to anticipate competitors' actions rather than merely react to them (pg. 148)

Behavioral Segmentation

allocates consumers into groups, based on their knowledge, attitudes, uses or responses to a product or service. (pg. 217)

core competency

any of the strengths that represent unique skills or resources that can determine the organizations competitive edge (pg. 149)

Positive Interpersonal Relationships

are a key to creating positive energy in people's lives (pg. 228)

Invalidating Communication

arouses negative feelings about self-worth, identity, and relatedness to others. It denies the presence, uniqueness, or importance of other individuals. (pg. 239)

Validating communication

helps people feel recognized, understood, accepted, and valued. (pg. 239)

Respectful, Egalitarian Communication

important when a person with a higher status interacts with a person of a lower status. (pg. 241)

Brand Knowledge

is the set of associations that consumers hold in memory regarding the brand's features, benefits, users, perceived quality, and overall attitude as a result of prior brand marketing activities. (pg. 284)

Cannibalization

is the loss of sales of an existing product within a portfolio to a new product in the same portfolio (pg. 291)

Brand Equity

is the power of a brand, through creation of a distinct image, to influence customer behavior (pg. 284)

Market Targeting

is the process of evaluating and selecting the most viable market segment to enter. (pg. 220)

Brand Valuation

is the process of quantifying the financial benefit that results from owning a brand (pg. 285)

Brand Strategy

is the process where "the offer is positioned in the consumer's mind to produce a perception of advantage". (pg. 290)

Rigidity in Communication

is the second major type of invalidation: The communication is portrayed as absolute, unequivocal, or unquestionable. (pg. 240)

grand strategies

the four primary types of strategies: growth, stability, retrenchment and combination (pg. 150)

Brand Positioning

the location that a brand occupies in the marketplace relative to competitors, can be achieved on a hierarchy of three levels. (pg. 288)

Mission Statement

the purpose of an organization (pg. 147)

combination strategy

the simultaneous pursuit by an organization of two or more of growth, stability, and retrenchment strategies. (pg. 152)

cost-leadership strategy

the strategy an organization follows when it wants to be the lowest cost producer in its industry (pg. 152)

differentiation strategy

the strategy an organization follows when it wants to be unique in its industry within a broad market (pg. 153)

focus strategy

the strategy an organization follows when it wants to establish an advantage in a narrow market segment (pg. 153)

market segmentation

the division of consumer markets into meaningful and distinct customer groups (pg. 214)

Strategic Management Process

A nine-step process that involves strategic planning, implementation, and evaluation (pg. 147)

Growth Strategy

A strategy in which an organization attempts to increase the level of its operations; can take the form of increasing sales revenue, number of employees, or market share (pg. 151)

SWOT Analysis

Analysis of an organization's strengths, weaknesses, opportunities, and threats in order to identify a strategic niche that the organization can exploit (pg. 150)

descriptive communication

It is difficult to avoid evaluating other people without having an alternative strategy, this form of communication is designed to reduce the tendency to evaluate and to perpetuate a defensive interaction (pg. 236)

Owning Communication

Taking responsibility for one's statements and acknowledging that the source of the ideas is oneself and not another person or group (pg. 244)

Incongruence

Two types. One is a mismatch between what one is experiencing and what one is aware of. The second kind is more closely related to supportive communication, is a mismatch between what one thinks or feels and what one communicates. (pg. 235)

Repetition probe

When the communicator is avoiding a topic, hasn't answered a previous question, or a previous statement is unclear, this type of probing is used (pg. 248)

Reflection Probe

When the communicator is being encouraged to keep pursuing the same topic in greater depth, this type of probing is used (pg.248)

Elaboration probe

When the communicators statement does not contain enough information, this type of probing is used (pg. 248)

Clarification probe

When the message is not clear or is ambiguous, this type of probing is used (pg. 248)

Positioning

placement of a product or service offering in the minds of consumer targets (pg. 223)

Probing Response

asks a question about what the communicator just said or about a topic selected by the listener. The intent of a probe is to acquire additional information, to help the communicator say more about the topic, or to help the listener foster more appropriate responses. (pg. 248)

Psychographic segmentation

assigns buyers into different groups, based on lifestyle, class, or personality characteristics. (pg. 217)

Needs segmentation

assigns consumers into groups, based on their current and desired level of interaction with a particular market category. (pg. 218)

Bundling

bundled offering is perceived by customers to offer more value than the individual components of the bundle sold separately (pg. 291)

Superiority-oriented Communication

can take the form of put-downs, in which others are made to look bad so that the communicator looks good. Or it can take the form of "one-upmanship," in which the communicator tries to elevate himself or herself in the esteem of others. (pg. 240)

Values segmentation

considers what customers prefer and what motivates customer response to marketing activities (pg. 217)

Brand Personality

consists of characteristics that make a brand unique, much like human personality. Brand Personalities vary widely, including rugged, sexy, and sophisticated. (pg. 288)

Private label brands

created by either a retailer or reseller have increasingly appeared in the retail environment (pg. 289)

Perceptual map

defines the market, based on consumer perception of attributes, or characteristics, of competing products. Also known as positioning chart. (pg. 225)

Demographic segmentation

divides the market into groups based on criteria such as age, gender, family size, family life cycle, income, occupation, education, religion, ethnicity, generation, nationality, and sexual orientation (pg. 216)

strengths (strategic)

internal resources that are available or things that an organization does well (pg. 149)

brand extension

involves taking an existing brand, into a new category (pg. 291)

Co-branding

involves the collaboration of multiple brands in the marketing of one specific product. (pg. 290)

Brand Architecture

involves the naming and organizing of brands within a broader portfolio. (pg. 289)

Brand

is a promise to deliver specific benefits associated with products or services to consumers (pg. 282)

Behavioral targeting

is a recent development that optimizes the online advertising potential for products and services. (pg. 220)

Brand Alliance

is a relationship, short of a merger, that is formed by two or more businesses to create market opportunities that would not have existed without the alliance (pg. 290)

Digital Brand Strategy

is a set of marketing activities that uses digital mediums to connect consumers to brands (pg. 283)

Brand Position statement

is a summary of what your brand offers to the market. Not seen by the public and is not the advertising tagline. (pg. 226)

Line Extension

is an addition to an existing product line that retains the currently utilized brand name. (pg. 290)

Unique Selling Proposition (USP)

is an expression of the uniqueness of a brand in a succinct manner. (pg. 223)

Two-way communication

is an implied result of respectfulness and flexibility. Individuals feel validated when they are asked questions, given "air time" to express their opinions, and encouraged to participate actively in the interpersonal interaction. (pg. 241)

Symbolic positioning

is based on characteristics of the brands that enhance the self-esteem of customers. (pg. 224)

Experiential positioning

is based on characteristics of the brands that stimulate sensory or emotional connections with customers. (pg. 224)

Functional Positioning

is based on the attributes of products or services and their corresponding benefits and is intended to communicate how customers can solve problems or fulfill needs. (pg. 224)

Indifference

is communicated when the other person's existence or importance is not acknowledged. An example is using silence. (pg. 240)

Mass marketing

is communicating a product or service message to as broad a group of people as possible with the purpose of positively influencing sales. (pg. 215)

Customer-based brand Equity

is defined as the differential effect that brand knowledge has on the customer response to marketing efforts (pg. 286)

Disjunctive Communication

is disconnected from what was stated before. 1. There can be a lack of equal opportunity to speak. 2. When speakers pause for long periods in the middle of their speeches or when there are long pauses before responses 3. When one person decides unilaterally what the next topic of conversation will be. (pg. 243)

Conjunctive communication

is joined to previous messages in some way. It flows smoothly. (Supportive Communication) (pg. 243)

Niche Marketing

is serving a small but well-defined consumer segment. Also referred to as concentrated marketing. (pg. 222)

Disowning Communication

is suggested by use of a third-person or first-person-plural words "We think", "They Said", or "one Might say" . (pg. 244)

Flexibility in Communication

is the willingness of a person to communicate an understanding that the other party may possess additional data and other alternatives that may make significant contributions both to the problem solution and to the relationship. (pg. 241)

Reflecting response

is to mirror back to the communicator the message that was heard and to communicate understanding and acceptance of the person (pg. 249)

Undifferentiated Marketing

is when a company treats the market as a whole, focusing on what is similar among the needs of customers, rather than on what is different. (pg. 221)

Price War

is when businesses cut prices to take sales from competitors (pg. 284)

Evaluative Communication

makes a judgement or places a label on other individuals or on their behavior: "You are doing it wrong" or "You are incompetent." Such evaluation generally makes other people feel under attack and, consequently, respond defensively. (pg. 236)

Imperviousness

means that the communicator does not acknowledge the feelings or opinions of the other person. They are either labeled illegitimate or ignorant. (pg. 240)

threats

negative external environmental factors (pg.149)

Strong Brand

occupies a distinct position in consumers' minds based on relevant benefits and creates an emotional connection between businesses and consumers (pg. 287)

acquisition

occurs when a larger company buys a smaller one and incorporates the acquired company's operations into its own (pg.151)

merger

occurs when two companies usually of similar size, combine their resources to form a new company (pg. 151)

Manufacturer Brands

owned by a manufacturer as opposed to a retailer or reseller, have traditionally dominated the brand choices available to consumers at retail stores (pg. 289)

opportunities

positive external environmental factors (pg. 149)

Search Engine Optimization

process of enhancing web site traffic through either organic or compensated means, can be an effective marketing tool and can assist in the positioning of your product or service during the consumer shopping process. (pg. 225)

Advising Response

provides direction, evaluation, personal opinion, or instructions. (pg. 247)

Brand Loyalty

purchase loyalty and attitudinal loyal. Attitudinal leads to a higher relative price while purchase loyalty leads to greater market share, which together equal brand profitability. (pg. 285)

weakness

resources that an organization lacks or activities that it does not do well (pg. 149)

environmental scanning

screening large amounts of information to detect emerging trends and create a set of scenarios (pg. 148)

supportive communication

seeks to preserve or enhance a positive relationship between you and another person while still addressing a problem, giving negative feedback, or tackling a difficult issue (pg. 234)

Differentiated Marketing

separates and targets different market segments with a unique product or service tailored to each segment. Also referred to as multi-segment marketing (pg. 222)

Deflecting Response

switches the focus from the communicator's problem to one selected by the listener. Listeners deflect the attention away from the original problem or the original statement (pg. 247)

Brand Extension

taking an existing brand into a new category, opportunities (pg. 283)

Congruence

that is, what is communicated, verbally and non-verbally, matches exactly what the individual is thinking and feeling. Simply means being honest. (pg. 235)