Marketing Concepts, Strategy, Research, and Segmentation Flashcards

Vocabulary flashcards covering core marketing textbook principles, consumer decision-making processes, marketing research techniques, growth matrices, and STP strategy.

Marketing

An organizational function and a set of processes for creating, capturing, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders.

Marketing Plan

A written document composed of an analysis of the current marketing situation, opportunities and threats for the firm, marketing objectives and strategy specified in terms of the four Ps, action programs, and projected or pro forma income and financial statements.

Exchange

The trade of things of value between the buyer and seller so that each is better off as a result.

Brand Equity

A series of experiences between a product and brand that creates value by offering higher pricing power, insulation from competition, loyal customer advocacy, and improved resilience during bad product launches.

SWOT Analysis

A strategic planning framework used to evaluate a firm's internal Strengths and Weaknesses as well as external Opportunities and Threats.

Boston Consulting Group Matrix (BCG Matrix)

A portfolio analysis tool that classifies business units or products along Market Growth Rate and Relative Market Share axes to guide strategic investment decisions.

Stars

Products or business units in high-growth markets with high market share that require a significant amount of investment to maintain their growth.

Cash Cows

Products in low-growth markets with high market share that generate excess cash to be harvested and reinvested into Stars and Question Marks.

Question Marks

Products in high-growth markets with low market shares that require significant resources to maintain and evaluate for potential to become stars.

Dogs

Products in low-growth markets with low market share that should be liquidated, divested, repositioned, or phased out.

Ansoff Matrix

A framework for evaluating growth strategies based on whether a firm introduces current or new products into current or new markets.

Market Penetration

A growth strategy that employs the existing marketing mix and focuses firm efforts on selling current products to existing customers.

Market Development

A growth strategy that uses existing marketing offerings to reach new customer segments or markets.

Product Development

A growth strategy that offers a new product or service to a firm's current target market.

Diversification

A growth strategy introducing a new product or service to a market segment that the firm does not currently serve.

Marketing Research

A set of techniques and principles for systematically collecting, recording, analyzing, and interpreting data that can aid decision makers involved in marketing goods, services, or ideas.

Secondary Data

Pieces of information that have been collected prior to the start of the focal research project from readily available external or internal sources.

Primary Data

Data collected directly to address specific research needs and answer unique questions about consumer behavior.

Syndicated Data

Secondary data available for a fee from commercial research firms such as Information Resources Inc., NPD Group, and Nielsen.

Scanner Data

Quantitative secondary data obtained from checkout scanner readings to track item purchases across stores.

Panel Data

Information collected over time from a group of consumers, organized into panels, to analyze total buying patterns.

Qualitative Research

Informal research methods such as observation, social media monitoring, in-depth interviews, and focus groups used to discover exploratory insights.

Quantitative Research

Structured research responses that can be statistically tested to confirm hypotheses generated via qualitative research or secondary data, including surveys, scanner data, and experiments.

Data Mining

Statistical tools used to uncover previously unknown patterns or relationships among variables stored in big data databases.

Motive

A need or want that is strong enough to cause a person to seek satisfaction.

Maslow's Hierarchy of Needs

A psychological framework classifying human motives into five levels: physiological needs, safety needs, love needs, esteem needs, and self-actualization.

Cognitive Component of Attitude

The component of an attitude reflecting what a person believes to be true about an object or idea.

Affective Component of Attitude

The component of an attitude reflecting what a person feels about the issue at hand, including likes or dislikes.

Behavioral Component of Attitude

The component of an attitude comprising the explicit actions a person takes with regard to an issue or product.

Perception

The process by which people select, organize, and interpret information to form a meaningful picture of the world.

Reference Group

One or more persons whom an individual uses as a basis for comparison regarding beliefs, feelings, and behaviors.

Market Segmentation

The process of dividing a broad market into distinct groups of customers with different needs, wants, or characteristics who require tailored products or marketing efforts.

Geographic Segmentation

The grouping of consumers on the basis of where they live.

Demographic Segmentation

The grouping of consumers according to easily measured, objective characteristics such as age, gender, income, and education.

Psychographic Segmentation

Segmenting customers based on how they spend their time and money, what activities they pursue, and their attitudes and opinions about the world.

Benefit Segmentation

The grouping of consumers on the basis of the specific benefits they derive from products or services.

Behavioral Segmentation

Dividing customers into groups based on how they use a product or service, such as occasion and brand loyalty.

Market Basket Analysis

A mathematical modeling technique utilizing big data on customer transactions to determine associations between groups of items purchased simultaneously.

Segment Profitability Formula

Calculated as: $\text{Segment profitability} = (\text{Segment size} \times \text{Segment adoption percentage} \times \text{Purchase behavior} \times \text{Profit margin percentage}) - \text{Fixed costs}$

Undifferentiated Targeting Strategy (Mass Marketing)

A targeting approach used when a product or service provides similar benefits to almost all consumers, eliminating the need to develop separate strategies for different groups.

Differentiated Targeting Strategy

A targeting strategy in which a firm targets several distinct market segments with a tailored marketing offering for each.

Concentrated Marketing Strategy

A targeting strategy that selects a single primary market segment and focuses all organizational resources on serving that specific market's needs.

Micromarketing (One-to-One Marketing)

An extreme form of market segmentation that tailors a product or service to fit an individual customer's unique wants or needs.

Value Proposition

The unique value that a product or service provides to its target customers, detailing how it outperforms and differs from competitor offerings.

Perceptual Mapping

A visual map displaying, in two or more dimensions, the positioning of competing brands or products in the consumer's mind.

Brand Pyramid

A strategic structure defining a brand's value proposition starting from purpose and reasons to believe up through functional and emotional benefits, personality, and brand promise.

Positioning Statement

A concise summary of brand strategy formatted as: For [target market], [brand name] is the [category frame] that [brand promise] [reason to believe].

Information Encoding Stage

The initial stage in memory development where consumers convert raw information received about products into storable cognitive inputs.

Information Storage Stage

The second stage of memory development explaining how knowledge becomes integrated and stored within existing mental networks.

Retrieval Stage

The third memory development stage in which consumers retrieve stored information from memory to make purchase decisions.