Study Unit 1: Marketing Management Flashcards

Comprehensive vocabulary flashcards covering the core concepts, evolutionary stages, marketing principles, research methods, segmentation criteria, 4Ps/7Ps, product strategies, pricing models, and communication channels of Marketing Management.

Marketing

A set of management tasks and decisions used to respond to opportunities and threats in a changing environment by developing and transferring a market offering that satisfies consumers' needs, while meeting the objectives of the business, consumers, and society.

Marketing Process

The practical sequence of activities used to market successfully, consisting of environmental scanning and market research, developing an offering, combining marketing-mix instruments, and reaching consumers.

Operations- or Production-Oriented Approach

A management approach that focuses mainly on internal production capacity and producing goods efficiently, often assuming that consumers will buy whatever the business manufactures.

Sales-Oriented Approach

An approach associated with approximately 1930–1950 where the business focuses on selling accumulated or mass-produced stock using aggressive persuasive techniques, prioritising sales volume over customer needs.

Marketing-Oriented Approach

A management approach where the business focuses on making products attractive and accessible by considering product quality, packaging, distribution channels, and marketing communication.

Consumer-Oriented Approach

An approach where consumer needs, demands, and preferences guide product and service decisions, relying on research to discover customer desires prior to development.

Strategic Approach

A management approach where the business scans the business environment for opportunities and threats, analyses competitors and changing consumer needs, and uses long-term planning to support survival and growth.

Relationship Marketing

A strategic approach aimed at developing and maintaining long-term relationships with profitable customers and suppliers to foster brand trust, repeat purchases, and customer loyalty.

Marketing Concept

The overarching philosophy that guides marketing decisions by balancing consumer orientation, business profitability, social responsibility, and organisational integration.

Consumer Orientation

A principle of the marketing concept stating that a business must identify and satisfy consumers' needs, demands, and preferences while remaining aligned with business objectives.

Profitability (Marketing Principle)

A principle of the marketing concept requiring the business to generate sustainable profit over the long term rather than merely chasing short-term sales volumes.

Social Responsibility (Marketing Principle)

A principle of the marketing concept where the business acts responsibly, obeys legislation, protects consumers, and considers the welfare of society through practices like truthful advertising and reduced packaging.

Organisational Integration

A principle of the marketing concept requiring all departments (marketing, production, finance, distribution) to collaborate harmoniously rather than work against each other to achieve marketing goals.

Market Research

The systematic gathering, analysis, and interpretation of information regarding marketing problems using recognised methods to enable informed decision-making by management.

Internal Market Research

Market research that utilizes data and information already available inside the organisation, such as internal sales records and financial reports.

External Market Research

Market research that gathers information originating outside the organisation, such as customer surveys or competitive analysis.

Ad Hoc Market Research

A specific, typically one-off research investigation initiated to solve a particular marketing problem or answer a distinct question.

Problem-Identification Research

Research conducted to detect marketing problems or opportunities that are not necessarily apparent on the surface, including market-potential, market-share, and sales-analysis research.

Problem-Solving Research

Research conducted to investigate actionable solutions for specific marketing challenges, including segmentation, product, pricing, promotional, and distribution research.

Survey Method

A structured market research technique that collects primary data by administering written or verbal questionnaires to respondents in person, by phone, or by post.

Market Forecasting

The process of estimating future market conditions, demand, and sales levels using available data to guide business planning regarding inventory, staffing, finance, and production.

Test Marketing

A forecasting and product development technique where a product is launched into a restricted, small part of the market to evaluate customer response prior to full-scale launch.

Market

A group of people who possess a need for a product, have the ability to afford it, are willing to spend financial resources on it, and are legally entitled to purchase it.

Market Segmentation

The process of dividing a large, heterogeneous market into distinct, smaller sub-groups of consumers who exhibit relatively homogeneous needs or characteristics.

Geographic Segmentation

Dividing a broad consumer market according to geographic location or physical environment, incorporating variables such as region, urbanicity, climate, season, and rainfall.

Demographic Segmentation

Dividing the market based on measurable population characteristics, including age, gender, occupation, income, education, socio-economic group, marital status, family size, and ethnicity.

Psychographic Segmentation

Dividing consumers into groups according to psychological and lifestyle variables, including activities, interests, opinions, values, attitudes, social class, and personality traits.

Behavioural Segmentation

Dividing consumers based on their practical relationship with and behaviour towards a product, including purchasing occasions, benefits sought, usage rate, brand loyalty, and price sensitivity.

Target Market

The specific market segment or group of consumers that an organisation decides to focus on and serve with tailored marketing offerings.

Positioning

The process of designing a product's image and marketing mix so that it occupies a distinct, meaningful, and desirable perception in the minds of the target audience relative to competitors.

Market Aggregation (Mass Marketing)

An approach that treats the entire market as an undivided whole, applying a single marketing strategy under the assumption that consumer needs are broadly similar (e.g., basic salt, sugar, flour).

Single Segmentation

A target-marketing approach where a company selects a single specific market segment and concentrates all of its marketing efforts exclusively on that group.

Multi-Segmentation

A target-marketing approach where a business directs differentiated marketing mixes and product offerings to several distinct customer segments simultaneously.

Consumer Behaviour

The observable actions and underlying, less visible decision-making processes of individuals and households involved in acquiring, evaluating, using, and disposing of products.

Perception (Consumer Behaviour)

The psychological process by which an individual selects, organizes, and interprets incoming information and stimuli about products, brands, and businesses.

Reference Group

A social group that serves as a point of comparison or reference for an individual, exerting direct or indirect influence on their attitudes, values, and purchasing behaviour.

Group Norms

The formal or informal standards, behavioural expectations, and rules established and shared by members of a reference group.

Marketing Mix

The tactical set of controllable marketing instruments (the traditional 4Ps or expanded 7Ps) that a business blends to generate the desired response from its target market.

Physical Evidence (7Ps)

The tangible, observable elements and environment—such as clean facilities, signage, staff uniforms, and professional documentation—that consumers use to evaluate a service.

Core Product

The fundamental utility, primary benefit, or essential problem-solving service that a customer actually buys when purchasing a product (e.g., carrying items).

Formal Product

The tangible, physical offering that delivers the core benefit, incorporating physical features, styling, quality level, brand name, and packaging.

Total Product

The comprehensive offering comprising the core benefit, the physical formal product, and augmented services like warranties, after-sales support, and overall brand experience.

Product Life Cycle (PLC)

The series of stages a product progresses through from its initial commercial entry to its eventual retirement, comprising introduction, growth, maturity, and decline.

Maturity Stage (PLC)

The stage of the product life cycle where overall sales growth levels off, competition peaks, and businesses focus heavily on defending market share and product differentiation.

Trademark

A legally registered and protected brand element, word, symbol, or design that grants exclusive rights to the owner and legally prohibits unauthorized use by others.

Brand Recognition

The initial phase of brand loyalty where a customer can identify and remember a brand when presented with it among alternatives.

Brand Preference

The intermediate phase of brand loyalty where a customer chooses a specific brand over competing alternatives if it is readily available.

Brand Insistence

The ultimate phase of brand loyalty where a consumer demands a specific brand, refusing any acceptable substitutes and seeking it out exclusively.

Packaging

The design, production, and filling of containers or protective wrappers to ensure products can be safely stored, transported, identified, used, and marketed.

Product Differentiation

The practice of distinguishing a product physically or psychologically from competitors via packaging, branding, price, advertising appeals, or distribution channels.

Price

The exchange value of a good or service, reflecting the amount of money, effort, or resources a consumer sacrifices relative to the perceived benefits received.

Price Skimming

A pricing strategy where an organisation sets a high introductory price for a new, innovative product before gradually lowering it over time to capture price-sensitive segments.

Market Penetration Pricing

A strategy where a business introduces a new offering at an initial low price to rapidly penetrate the market, gain high volume, and secure large market share.

Leader Pricing

Setting a very low, sometimes marginally profitable price on an appealing product to attract shoppers into a store, expecting them to purchase other profitable items.

Odd Pricing

A psychological pricing tactic where prices are set just below a round numerical boundary (e.g., $\text{R}99.99$ instead of $\text{R}100$) to convey greater value.

Bait Pricing

An unethical pricing tactic where a company promotes an unrealistically low price on an unavailable product to lure customers in, then pressures them to buy higher-priced alternatives.

Advertising

A controlled, non-personal, and paid form of mass communication by an identified sponsor designed to inform, persuade, or remind a designated target audience.

Personal Selling

An interactive, personal communication process where a sales representative verbally presents products to prospective buyers to inform, persuade, and conclude transactions.

Direct Marketing

Interactive marketing communication channels (such as targeted emails or postal materials) that allow an organisation to engage individual prospects and solicit direct responses.

Sales Promotion

Short-term tactical incentives—including discounts, samples, coupons, and competitions—designed to stimulate prompt consumer trial, accelerate buying, or boost immediate sales.

Publicity

Non-personal, unpaid media exposure resulting from newsworthy company information, which the organisation does not pay for directly and cannot fully control.

Public Relations (PR)

The planned, continuous management function dedicated to evaluating public attitudes, executing communications, and establishing mutual goodwill between a business and its stakeholders.