Marketing Management: Chapters 7, 8, 10, 11, 12, 13, and 14

Comprehensive vocabulary flashcards covering marketing management principles across value propositions, product differentiation, branding, pricing strategies, integrated marketing communications, and personal selling.

Functional value

The benefits and costs directly related to an offering's performance, including attributes such as reliability, durability, compatibility, ease of use, customization, form, style, and packaging.

Psychological value

The emotional benefits and costs associated with an offering beyond functional utility, primarily sought in luxury and fashion categories for self-expressive benefits and status.

Monetary value

The financial benefits and costs associated with an offering, including price, discounts, rebates, usage/disposal costs, cash-back offers, cash prizes, and financing terms.

Customer value proposition

An offering's net worth to a consumer based on the difference between the total benefits (functional, psychological, monetary) received and the total costs incurred.

Positioning

The act of designing a company's offering and image to occupy a distinctive place in the minds of the target market by clarifying brand essence, consumer goals, and unique attributes.

Points of difference (PODs)

Attributes or benefits that consumers strongly associate with a brand, positively evaluate, and believe cannot be found to the same extent with a competitive brand. Criteria require them to be desirable, deliverable, and differentiating.

Points of parity (POPs)

Attribute or benefit associations that are not necessarily unique to a brand but are shared with competitors, categorized into category, correlational, and competitive forms.

Perceptual maps

Visual representations displaying consumer perceptions and preferences to map competing offerings across key evaluative dimensions.

Conformance quality

The degree to which all manufactured units of a product are identical and satisfy promised technical specifications.

Design thinking

A data-driven approach to product development consisting of three sequential phases: observation, ideation, and implementation.

Product portfolio width

The number of different product lines that a company carries within its total product mix.

Product map

A visual matrix mapping competitive products against key specifications (such as paper weight and finish quality) to highlight market segments, competitors, and unfilled opportunities.

Line stretching

The practice of expanding a company's product line beyond its current range through down-market, up-market, or two-way market extensions.

Line filling

The strategy of lengthening a product line by introducing additional items within the existing range of offerings.

Guarantee vs. warranty

A guarantee provides compensation if a product fails to perform as promised or expected; a warranty covers repair or replacement of the item and usually precludes returning the product for a cash refund.

Brand equity

The monetary value of a brand reflecting the premium added to a company's valuation due to brand ownership, directly connected to corporate goodwill.

Brand power

Also called customer-based brand equity, this represents the ancillary value that brand awareness and positive associations contribute to a product or service.

Brand mantra

A three- to five-word phrase articulating the heart, soul, and core promise of a brand to communicate its essence, provide inspiration, and maintain focus.

Secondary sources of brand knowledge

Entities through which brand equity is borrowed and reinforced, linking the brand to people, places, things, and other partner brands.

Brand Value Chain

A structured model linking marketing investments to customer mind-set, market performance, and shareholder value via program, customer, and market multipliers.

Brand Positioning Bull's-Eye

A positioning framework structuring brand elements outward from the central brand mantra through points of parity/difference, substantiators, personality traits, and executional visual identity.

Brand dilution

The erosion of brand equity that occurs when overextending a brand causes consumers to lose clear associations and perceive the core brand less favorably.

Reference prices

Internal memory benchmarks or external pricing cues (such as posted regular retail prices) that consumers use to evaluate observed prices.

Market skimming

Setting an initial premium price on a newly introduced innovation to maximize revenue from buyers with the highest willingness to pay before lowering prices later.

Market penetration pricing

Setting an aggressively low initial price to attract large numbers of buyers, capture dominant market share, and reduce unit costs through high sales volume.

Price elasticity of demand

A measure of the sensitivity of demand to changes in price, contrasting inelastic demand (small change in quantity demanded) with elastic demand (large change in quantity demanded).

Break-even point

The sales volume where total revenue precisely equals total fixed and variable costs, producing zero profit before target margins are realized.

Markup pricing

A cost-oriented pricing method calculated using the formula: $\text{Markup price} = \frac{\text{unit cost}}{1 - \text{desired return on sales}}$

Captive pricing

A product-mix pricing strategy where the base item is sold at a low entry price and necessary companion accessories or supplies are marked up heavily (e.g., razors and blades).

Anticipatory pricing

The practice of increasing prices beyond current cost increases in anticipation of future inflation or impending government price regulations.

Elements in the communication process

The macromodel of communication consisting of sender, encoding, message and media, decoding, receiver, response, feedback, and intervening noise.

Developing a communication program

The six-step promotional planning process: setting objectives, identifying audience, crafting message, deciding on media, developing creative approach, and measuring performance.

Principle of congruity

A psychological communication principle stating that communicators can transfer their favorable image to improve consumer attitudes toward a brand, while potentially risking their own esteem.

ADPLAN framework

A tool used to evaluate advertising effectiveness across six dimensions: Attention, Distinction, Positioning, Linkage, Amplification, and Net equity.

Integrated marketing communications (IMC)

A planning process designed to assure that all brand contacts received by a customer for a product, service, or organization are relevant and consistent over time.

Conformability (in IMC)

The degree to which an individual communication tool works effectively both for consumers who are seeing the message for the first time and for those previously exposed.

Native advertising

Paid digital or print content that mirrors the editorial appearance, style, and tone of the publisher's platform while promoting a sponsor's product.

Publicity

Non-personal promotional messages placed in editorial media channels that do not incur direct media space purchase costs.

BANT framework

A sales lead qualification model assessing whether a prospective client possesses the requisite Budget, Authority, Need, and Timeline.

FABV approach

A structured sales presentation format breaking down an offering into Features, Advantages, Benefits, and financial Value.

SPIN selling

A consultative questioning methodology sequence covering Situation questions, Problem questions, Implication questions, and Need-payoff questions.

Workload approach

A method to calculate sales force size by grouping accounts into size tiers, setting call frequencies, determining total annual calls, and dividing by rep capacity.

Direct marketing

Using direct channels—such as direct mail, catalogs, telemarketing, and infomercials—to reach individual customers and generate transactions without middlemen.