Marketing Fundamentals: Chapters 1–7 Flashcards

Vocabulary practice flashcards covering core concepts from Chapters 1 through 7 including Marketing Philosophies, Porter's Five Forces, Ansoff Matrix, Global Integration, Ethics, and Organizational Buying Groups.

Marketing

Creating, communicating, delivering, and exchanging offerings that provide value to customers, with a main focus on understanding and satisfying customer needs/wants, creating value, and building strong customer relationships.

Customer Value

The benefits customers receive from a product or service.

Target Market

The specific group of people a company directs its marketing efforts toward.

Marketing Mix (4 Ps)

The four controllable variables in marketing: Product (what is sold), Price (what customers pay), Place (where/how sold), and Promotion (how advertised/communicated).

Production Philosophy

A marketing philosophy based on the belief that customers will buy what is available; works when supply is limited.

Product Philosophy

A marketing philosophy based on the idea that customers will buy products with better features or higher quality.

Sales Philosophy

A marketing philosophy focused on pushing and persuading customers to buy products.

Marketing Philosophy

A philosophy centered on identifying customer needs and wants first, then creating products to satisfy them.

Societal Philosophy

A philosophy focused on satisfying customers while also considering society's long-term interests and ethical/sustainable practices.

Porter's Five Forces

A framework used to determine how attractive or profitable an industry or market may be by analyzing Threat of New Entrants, Supplier Power, Customer Power, Threat of Substitutes, and Competitive Rivalry.

Threat of New Entrants

One of Porter's Five Forces measuring how easy it is for new competitors to enter an industry.

Supplier Power

One of Porter's Five Forces measuring how much control suppliers have over prices and supply.

Customer Power

One of Porter's Five Forces measuring how much influence customers have over price.

Threat of Substitutes

One of Porter's Five Forces examining whether there are other products or services customers can choose instead.

Competitive Rivalry

One of Porter's Five Forces measuring how intense competition is between existing businesses.

Blue Ocean Strategy

A strategy focusing on an uncontested/growing market with less competition and more opportunity.

Red Ocean Strategy

A strategy in a crowded/saturated market with intense competition.

Ansoff Matrix

A matrix that helps businesses choose a growth strategy based on existing or new products and existing or new markets.

Market Penetration

An Ansoff Matrix growth strategy focused on selling more existing products to existing markets.

Market Development

An Ansoff Matrix growth strategy focused on taking existing products into new markets.

Product Development

An Ansoff Matrix growth strategy focused on creating new products for existing markets.

Diversification

An Ansoff Matrix growth strategy involving new products and new markets; usually the riskiest growth strategy.

Morality

An individual's principles about what is right and wrong.

Ethics

Moral principles that guide the behavior of a group, profession, or activity.

Ethical Dilemma

A situation where a decision involves conflicting outcomes, with both positive and negative consequences.

STAR Framework

A tool marketers can use to analyze ethical situations before making a decision by slowing down, evaluating the situation, and considering consequences.

External Environment

Factors outside a company's control that can affect its marketing decisions (represented as Opportunities and Threats in SWOT).

Economic Environment

External factors including recessions, employment levels, interest rates, and consumer spending that impact marketing strategies.

Socio-Cultural Environment

Changes in population, generations, lifestyles, and social trends that affect consumer behavior.

Generation Alpha

The demographic cohort born approximately between 2010 and 2024.

Technological Environment

New technology (such as AI or smartwatches) that can create new markets, change consumer behavior, or replace existing industries/products.

Exporting

Selling domestically produced goods/services to other countries.

Importing

Purchasing foreign goods/services.

Trade Deficit

A situation that occurs when a country imports more than it exports.

Tariff

A tax on imports, designed to make foreign products more expensive.

Quota

A limit placed on the amount of a specific product that can be imported.

Subsidy

Government assistance provided to domestic producers to reduce their costs.

Free Trade Area

The initial level of economic integration that removes or reduces trade barriers between member countries.

Customs Union

A level of economic integration featuring free trade between members plus common tariffs on non-members.

Common Market

A level of economic integration that builds on a customs union by adding freer movement of services and money.

Economic Union

A high level of economic integration that coordinates economic policies, allows movement of workers, and may share a currency.

Political Union

The highest level of economic integration where member countries share a common government.

Straight Extension

Selling essentially the same product using the same strategy in another country.

Adaptation

Changing a product or marketing strategy to fit the foreign market's specific needs or culture.

Consumer Behavior

The study of how and why people choose, buy, and use products/services.

Consumer Decision Process

The multi-step process consumers go through: need recognition, information search, evaluating alternatives, purchase, and post-purchase evaluation.

Maslow's Hierarchy of Needs

A psychological model demonstrating that consumers generally satisfy lower-level physiological and safety needs before higher-level needs.

Self-Actualization

The highest level of Maslow's hierarchy, involving doing something for personal fulfillment (e.g., running a marathon or learning a language).

Raw Materials

Unprocessed resources used to make products.

Component Parts

Processed parts used to create another product.

Supplies

Business items needed for operations but not incorporated into the final product.

Finished Goods

Completed products ready for sale.

Users (Organizational Buying Group)

Members of an organizational buying group who actually use the purchased product or service.

Influencers (Organizational Buying Group)

Members of an organizational buying group who provide information and help establish specifications.

Gatekeepers (Organizational Buying Group)

Members of an organizational buying group who control the flow of information to others.

Buyers (Organizational Buying Group)

Members of an organizational buying group who have formal authority to select suppliers and secure the purchase.

Deciders (Organizational Buying Group)

Members of an organizational buying group who make the final product or service decision.