Principles of Marketing – ABM 308

Vocabulary flashcards covering key concepts from Weeks 1–8 of ABM 308 Principles of Marketing.

Marketing

The activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.

Needs

A state of felt deprivation or basic human requirements.

Wants

The form that needs take as shaped by culture and individual personality.

Demands

Wants backed by the ability and willingness to pay.

Exchange

The act of obtaining a desired product or service by offering something in return.

Market

A group of people who have both the desire and the ability to buy a product or service.

Goods

Physical products.

Services

Intangible offerings.

Experiences

Combined goods and services designed to create memorable interactions for customers.

Events

Time-based happenings like sports or concerts.

Persons

Celebrities or professionals as marketing targets.

Places

Cities, regions, or countries promoted for tourism or business.

Properties

Real estate or financial assets like stocks.

Organizations

Companies or institutions as market entities.

Information

News or data products marketed to audiences.

Ideas

Concepts or causes promoted to the public.

Production Concept

Focus on internal production capabilities rather than market needs.

Sales Concept

Pushing goods through aggressive selling and promotion.

Marketing Concept

Satisfying customer needs and wants while achieving organizational goals.

Relationship Concept

Emphasizes long-term value-added relationships with customers, distributors, and suppliers.

Societal Marketing Concept

Satisfying consumer needs in a way that benefits society.

Marketing Goals

Statements of the results a company wants to achieve through its marketing efforts.

Marketing Objectives

Specific SMART targets providing clear direction and targets.

SMART

Specific, Measurable, Actionable, Relevant, Time-bound.

KPIs

Key performance indicators used to track marketing performance.

Attainability

Goals must be realistic and achievable by involved parties.

Consistency

Goals should align across and within all functional areas.

Comprehensiveness

Each functional area should set goals that relate to the organization’s overall goals.

Intangibility

Goals should refer to outcomes, not just actions.

Target Market

The group of customers a company aims to serve.

Brand Awareness

The degree to which a brand is recognized or recalled by consumers.

Market Share

The portion of total market sales captured by a company.

Not-for-Profit Organization Marketing

Marketing by not-for-profit entities to support causes, attract donors, and engage multiple publics.

Person Marketing

Marketing of celebrities or authorities to attract target markets and endorsements.

Place Marketing

Promotion of cities, regions, or countries to attract tourism, investment, and residents.

Cause Marketing

Marketing that links products to social causes for mutual benefit; should be transparent and credible.

Event Marketing

Marketing of events (sports, culture, charity) to targeted audiences.

Green Marketing

Selling products based on environmental benefits; authenticity is essential to avoid greenwashing.

Relationship Marketing

Strategy to foster long-term customer loyalty, interaction, and engagement.

Customer Relationship Marketing (CRM)

Marketing technique focused on building relationships and loyalty with customers.

Transactional Marketing

Focus on increasing individual sales rather than long-term relationships.

4Ps in Relationship Marketing

Product: customized to customer preferences; Price: negotiated; Place: direct/order options; Promotion: personalized, integrated, extranets for key customers.

Benefits of Relationship Marketing

Better understanding of customers; improved delivery; repeat business; reduced risk of churn; word-of-mouth; larger customer base; lower costs; less price sensitivity; stronger brand loyalty; supports growth.

The Suki System

A Filipino patronage practice where customers regularly buy from one supplier in exchange for discounts, credit, and perks.

Customer Value

The balance between benefits received and costs (money, time, effort) sacrificed; Value = Benefits – Costs.

SQIP

The four components of customer value: Service, Quality, Image, Price.

Delivering Customer Value

Providing the best cost, the best product, or the best service to meet customer needs.

Value Proposition

The promise of value a company offers, balancing benefits against all costs.

Market Segmentation

Quantifying how different groups value a product or service.

Targeting

Identifying and selecting the most attractive market segments to serve.

Positioning

Arranging the product’s place in customers’ minds relative to competing offerings.

Marketing Mix

The controllable set of factors (Product, Price, Place, Promotion) used to influence buyer decisions.

Internal Homogeneity

Within a segment, customers share similar preferences and characteristics.

Market Density

The number of people within a given area.

Product

Anything offered in the market to satisfy needs or wants and exchanged for value.

Core Product

The end benefit the buyer is really purchasing.

Formal Product

The actual physical or perceived attributes of the product (quality, features, branding, packaging).

Augmented Product

Additional services that accompany the core product (after-sales service, warranty, delivery, installation).

Consumer Product Categories

Convenience, Shopping, Specialty, Unsought.

Industrial Product Categories

Raw Materials, Processed Materials, Equipment, Basic Components, Advanced Components, Product Components, MRO.

Product Positioning

Placing a brand in a market segment where it will be accepted and valued.

Product Elimination

Reducing or removing products from a portfolio.

Product Repositioning

Changing a product’s position in the market and its marketing mix.

New Product

A product new to the line or new to the market, including improvements, imitation, or innovation.

Product Overlap

Competing against one’s own brands through new products, private labels, or OEM sales.

Diversification

Entering unfamiliar products or markets; includes concentric, horizontal, and conglomerate variants.

Product Scope

Defined by the organization’s overall mission and business unit goals.

Value Marketing

Delivering on promises made for the product or service.

Product Design

The degree of standardization and quality features in a product.