Introduction to Marketing and Operations: Sessions 1 to 4

Comprehensive vocabulary flashcards covering marketing fundamentals, information systems, buyer decision processes, and target market segmentation from Sessions 1 through 4.

Course Assessment Weightings

The formal grading breakdown for the course consisting of Group Projects ($20\%$), Mid-term Examination ($40\%$), and Final Examination ($40\%$).

Marketing (CIM Definition)

The management process responsible for identifying, anticipating, and satisfying customer requirements profitably (Chartered Institute of Marketing, 2015).

Marketing (AMA Definition)

The activity, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society (American Marketing Association, 2013).

Marketing (Kotler Definition)

The science and art of exploring, creating, and delivering value to satisfy the needs of a target market at a profit, defining, measuring, and quantifying market size and profit potential (Kotler, 2012).

Market

A physical or virtual platform where buyers and sellers meet to exchange goods, services, or information, facilitating trade and fulfilling business and consumer needs.

Customer

An individual or entity who purchases a product or service from a business; they pay for the product but may or may not be the end user.

Consumer

The person who actually uses or consumes a product or service as the end user and receives its benefits, regardless of whether they bought it themselves.

Market Forces

External factors influencing the behavior of businesses, industries, and consumers in a market, impacting supply and demand dynamics, pricing, competition, and the overall environment.

Marketing Information System (MIS)

A structured and integrated system designed to collect, store, analyze, and distribute marketing-related data from internal and external sources to support marketing decision-making.

Internal Data (MIS)

Information gathered and stored within an organization generated from its own operations and interactions, including sales figures, customer profiles, transactional data, digital metrics, and budgets.

External Data (MIS)

Information gathered from sources outside an organization, including economic statistics, competitor intelligence, industry trend reports, legal regulations, and social media analytics.

Market Research

The systematic gathering, recording, and analyzing of data to understand customer needs, gauge market potential, and analyze competition, valued globally at approximately $\$85$ to $\$100\text{ billion USD}$ in $2023$.

Market Research Process

A six-step sequential framework for executing research: 1. Define the Problem and Research Objectives, 2. Research Design, 3. Data Collection, 4. Data Processing, 5. Data Analysis, and 6. Market Research Report & Presentation.

Primary Research

The collection of new, firsthand data directly from sources such as customers, competitors, or industry experts through surveys, interviews, focus groups, or observation.

Secondary Research

The analysis of existing data that has already been collected and published by other entities, such as reports, trade journals, academic articles, and government publications.

Quantitative Research

Research focused on quantifying data and drawing statistical inferences through structured methods like closed-ended surveys, online polls, and analytics to identify patterns, averages, or correlations.

Qualitative Research

Research focused on exploring deeper underlying meanings, opinions, and motivations behind consumer behavior through open-ended interviews, focus groups, and ethnographic studies.

Haeckel's Pyramid

A hierarchical model reflecting structural complexity, visually organizing information flow from Data at the base through Information, Intelligence, Knowledge, and culminating in Wisdom at the apex.

Individual Buyer

A private consumer who acquires products or services for personal or household use, typically making quicker decisions influenced by emotions, brand reputation, and sales promotions.

Business/Corporate Buyer

An organization, department, or committee that purchases goods and services on behalf of an enterprise using rational criteria, detailed specifications, and formal procurement procedures.

Consumer Buying Decision Process

The five-stage sequence a consumer passes through when making a purchase: 1. Need Recognition, 2. Information Search, 3. Evaluation of Alternatives, 4. Purchase Decision, and 5. Post-Purchase Behaviour.

Evaluative Criteria

The dimensions or product attributes used to compare alternative choices, classified into objective criteria (concrete, tangible traits like price and warranty) and subjective criteria (intangible traits like style, appearance, and image).

Heuristic Decision

Mental shortcuts and simplified rules of thumb used to make buying choices quickly with minimal effort, such as 'buy the brand we trust', 'buy the cheapest', or 'buy the most expensive'.

Customer Complaint

A formal or informal expression of customer dissatisfaction centered around a negative experience, problem, or unmet expectation regarding a product or service.

Customer Feedback

The broad spectrum of solicited or unsolicited comments, suggestions, and opinions—both positive and negative—providing continuous insights for organizational improvement.

Straight Rebuy

A routine business buying situation in which an organization reorders existing goods or services without making any modifications to terms or specifications.

Modified Rebuy

A business buying situation where a buyer wants to adjust product specifications, pricing, quantities, or delivery terms, often requiring evaluation of multiple suppliers.

New Task

A complex business buying situation where an enterprise purchases a product or service for the very first time, requiring thorough research and input from multiple departments.

Target Marketing

The strategic practice of breaking a market into segments and concentrating promotional and commercial efforts on specific customer groups most likely to buy.

STP Framework

A core marketing model consisting of Segmentation (dividing the market), Targeting (selecting the most attractive segments), and Positioning (establishing a clear brand identity in consumers' minds).

Market Segmentation

Dividing a broad consumer market into distinct sub-groups using four primary bases: Geographics (e.g., country, climate), Demographics (e.g., age, income), Psychographics (e.g., lifestyle, values), and Behavioral (e.g., benefits sought, usage).

Segment Persona

A research-based, semi-fictional profile representing an ideal consumer within a target segment, detailing demographics, psychographics, goals, pain points, and customer journeys.

Brand Position

The unique space and perception a brand or product occupies in the minds of target consumers relative to direct and indirect competitors.

Value Proposition

A clear, compelling statement communicating the specific problem a product solves, the distinct benefits it delivers, and why it is superior to competitive alternatives.

Unique Selling Proposition (USP)

The distinct, singular factor or feature that differentiates a product or brand from all competitors in the eyes of the target customer.

Positioning Statement

A concise internal declaration outlining how a brand intends its target audience to perceive its product, specifying target customers, key benefits, and differentiating advantages.

Position Map using Multidimensional Scaling (MDS)

A perceptual mapping technique that graphically plots competitor brands in a two- or three-dimensional attribute space (such as price versus style) to visualize consumer perceptions.