Marketing Management – Sony Headphones Case & Core Concepts

A comprehensive set of vocabulary flashcards summarising the key marketing concepts, models and examples discussed in the lecture, centred on Sony headphones and broader marketing theory.

Substantial Product

The physical-technical core of a product that satisfies functional customer needs (e.g., the drink itself in Starbucks).

Expanded Product

The physical product plus additional intangible services that add functional value (e.g., free Wi-Fi, store ambiance).

Generic Product

All tangible and intangible aspects of a product that create functional, emotional and social benefits for customers.

Product Mix

The complete assortment of product lines and items a company offers.

Width of Product Mix

The number of different product lines a company carries.

Depth of Product Mix

The number of product variants within a single product line.

Product Variation

Changing a product’s attributes (e.g., colour) without altering its core function.

Product Differentiation

Increasing the width or depth of a product mix to target additional market segments.

Diversification

Adding new product categories or technologies to enter new markets.

Product Bundling

Selling two or more products together at a single price to create synergy.

Product Platform

A common standard component used across several product variations to save cost and time.

Product Elimination

Removing a product or product line due to poor performance or lack of synergy.

Brand

A name, term, symbol, design or combination that distinguishes a seller’s goods or services from competitors.

Brand Personality

Human traits associated with a brand (e.g., Sony = innovative, reliable).

Brand Benefits

Functional, emotional or self-expressive value customers derive from a brand.

Brand Core

The central promise or essence of a brand (e.g., “Best wireless noise-cancelling headphones”).

Single Branding Strategy

One brand owner owning several single-product brands (e.g., Nutella, Ferrero Rocher).

Single Umbrella Branding Strategy

One brand name used for multiple products (e.g., Google Docs, Google Maps).

Multi-Umbrella Branding Strategy

A parent company owns several umbrella brands, each with multiple products (e.g., Sony, with PlayStation, Sony Music, VAIO).

Line Extension

Introducing new variants within an existing product line under the same brand.

Brand Extension

Entering a new product category using an existing brand name.

Multibranding

Creating a new brand name for a product that enters an existing category.

Generic New-Product Pricing

Initial pricing decisions for a newly launched product line.

Price Skimming

Setting a high initial price to skim revenues from early adopters when demand is inelastic.

Penetration Pricing

Introducing a product at a low price to gain market share when demand is elastic.

Classical Pricing Theory

Assumes rational customers who maximise utility; used to derive demand functions and price elasticities.

Demand Function

A mathematical expression showing how quantity demanded depends on price (x(p)=a−bp).

Price Elasticity of Demand (PED)

Percentage change in demand divided by percentage change in price; measures responsiveness to price changes.

Price Differentiation

Selling the same product at different prices to distinct customer segments to capture consumer surplus.

Value-Based Pricing

Setting prices primarily on the customer’s perceived value rather than on cost.

Cost-Based Pricing

Price = unit cost + markup; ignores demand and competition factors.

Competition-Based Pricing

Setting prices with close reference to competitors’ pricing behaviour.

Price War

A series of aggressive price cuts among competitors, typically ending in a lose-lose scenario.

Prisoner’s Dilemma (in pricing)

A game-theory situation where mutually aggressive pricing worsens outcomes for all players.

Sales Entity

Any internal or external party that performs or supports sales activities for a company.

Internal Sales Department

Company employees responsible for everyday sales operations.

Affiliated Sales Entity

Economically or legally dependent external partner, such as an authorised dealer or franchisee.

Independent Sales Entity

Legally independent partners like wholesalers or agents selling on commission.

Indirect Sales Channel

An external organization assumes responsibility for selling the product.

Direct Sales Channel

The manufacturer’s own employees sell directly to customers.

Hybrid Sales Channel

Combination of direct and indirect sales approaches.

Long Tail Effect

Shift from a few mainstream hits to many niche products due to lower production and distribution costs.

Depth of Sales Channel

The number of intermediary tiers a product passes through (e.g., single-tier vs. two-tier).

Width of Sales Channel

The number of different channels a firm uses simultaneously (single channel vs. multichannel).

Vertical Marketing

Coordinated end-customer-oriented marketing by manufacturers and their sales partners.

Vertical Conflict

Disagreement between a company and partners at different levels of the channel.

Horizontal Conflict

Dispute among partners at the same distribution level (e.g., retailer vs. retailer).

AIDA Model

Attention → Interest → Desire → Action; stages of effective personal selling or advertising.

Feature Selling

Emphasising technical characteristics of a product in the sales presentation.

Benefit Selling

Highlighting how product features solve customer problems or deliver value.

Adaptive Selling

Ability of the salesperson to modify behaviour during interaction based on customer signals.

Personal Communication

Direct, interactive contact between sender and receiver (e.g., in-store conversation).

Non-Personal Communication

No direct interpersonal contact; messages travel via media (e.g., print ad).

Integrated Marketing Communications (IMC)

Coordinated management of all company communications across channels for consistent messaging.

Activation Stimuli

Physical, emotional or cognitive cues designed to raise audience attention in advertising.

Frequency Technique

Repetition of a message to enhance memorability in print or broadcast media.

Television Commercial

Audio-visual advertisement broadcast on TV or cinema with high reach but high cost.

Radio Spot

Audio advertisement on radio; low cost, no visual element.

Outdoor Advertising

Ads placed in public spaces such as billboards or transit posters.

Internet Advertising

Online promo formats like banners, pop-ups, and corporate blogs allowing targeting and interactivity.

Mobile Marketing

Promotional activities conducted via mobile devices using push or pull approaches.

Direct Marketing

Direct, personalised communication aimed at eliciting an immediate response (e.g., mailers, email).

Sales Promotion

Short-term incentives designed to boost sales among new or existing customers.

Public Relations (PR)

Managing relationships with various publics through press, events and relationship management.

Trade Fair

Exhibition where firms present products, network with experts, and generate sales leads.

Corporate Identity (CI)

Standardised appearance and behaviour conveying a company’s personality to stakeholders.

Product Placement

Integrating a branded product into entertainment content to reach consumers naturally.

7Ps of Services Marketing

Product, Price, Place, Promotion, People, Process, Physical Evidence – an expanded marketing mix for services.

Physical Evidence (Service)

Tangible cues (e.g., environment, brochures) that signal service quality to customers.

Personnel Decisions (Service)

Recruiting, training and motivating employees who deliver the service.

Process Decisions (Service)

Designing efficient, error-free and customer-friendly workflows for service delivery.

Experience Curve

Concept that unit production costs decline by a constant percentage each time cumulative output doubles.

Product Life-Cycle Model

Framework tracking product progress through introduction, growth, maturity and decline stages.

PIMS Project

Large database study analysing how market strategy variables (e.g., share, quality) affect profitability.

Market Penetration

Growth strategy to increase usage among current customers in existing markets.

Market Development

Entering new segments or geographic areas with existing products.

Product Development

Creating new products for existing markets to spur growth.

Diversification (Strategic)

Entering new markets with new products to spread risk and exploit new opportunities.

Vertical Integration

Expansion into upstream suppliers or downstream distribution channels.

Horizontal Integration

Acquiring or developing businesses at the same stage of the value chain to reach new customers.

Lateral Integration

Entering completely unrelated industries to diversify risk.

Customer Relationship Management (CRM)

Systematic activities to build, maintain and enhance profitable customer relationships.

Diversity Marketing

Strategy recognising and addressing heterogeneity within target markets to promote inclusion and reach marginalised groups.

Long-Term Price Reference

Customers’ internal benchmark formed after a company lowers price, making future price increases difficult to accept.

Peaceful Pricing Behaviour

Setting prices to achieve own objectives without provoking competitors.

Cooperative Pricing Behaviour

Firms coordinate to avoid destructive price competition.

Aggressive Pricing Behaviour

Using price cuts to harm or eliminate competitors, often escalating to price wars.

Tit-for-Tat Strategy

Matching a competitor’s price move once and signalling willingness to cooperate thereafter to deter sustained price war.

Target Group Segmentation Criteria

Sociodemographic, geographic, psychographic and behavioural variables used to define audiences for communication.

Corporate Design

Visual elements (logo, colours, typography) that create a unified brand appearance.

Corporate Behaviour

Employees’ conduct reflecting company values toward customers and other stakeholders.

Physically Intensive Stimuli

Large, loud, colourful components in advertising used to grab attention quickly.

Emotional Stimuli

Advertising cues triggering built-in affective responses (e.g., cute animals).

Cognitive Stimuli

Surprise, contradictions or puzzles used in advertising to provoke mental engagement.

Push Principle (Mobile)

Company initiates contact with consumers via alerts or messages on mobile devices.

Pull Principle (Mobile)

Consumers seek out mobile content after being informed via other media.

Trade Journal

Periodical targeted at professionals in a specific industry, emphasising informative rather than entertaining content.

Hover Ad

Online advertisement that floats over webpage content until closed by the user.

Rich Media Advertising

Interactive online ads featuring video, audio or other dynamic elements to boost engagement.

Adaptive Clothing

Apparel designed with features like magnetic closures for easier dressing by people with disabilities.