Marketing Management – Vocabulary Review

These flashcards cover essential vocabulary and key concepts highlighted in the marketing-management pre-assessment, spanning the marketing mix, strategy, research, analytics, consumer behavior, services, pricing, channels, and promotion.

7Ps (Extended Marketing Mix)

Product, Price, Place, Promotion, People, Process, and Physical Evidence – variables service firms adjust to create value and satisfaction.

Physical Evidence

The tangible cues (e.g., décor, uniforms, signage, equipment) that shape a customer’s perception of a service encounter.

People (in 7Ps)

Employees and other human actors whose attitudes and behaviors influence service quality and customer satisfaction.

Process (in 7Ps)

The procedures, mechanisms, and flow of activities by which a service is consumed.

Marketing Ethics

Professional and societal standards of fair, honest, and responsible marketing practice.

Marketing Intelligence

Systematic gathering and analysis of publicly available data about competitors, markets, and trends.

Marketing Mix (4Ps)

The controllable set of Product, Price, Place, and Promotion decisions used to position a brand in the marketplace.

Little-m Marketing

Day-to-day, customer-facing tactics such as advertising, packaging, and sales promotions.

Big-M Marketing

High-level analysis of markets and competitors used to craft long-term business strategy.

SWOT Analysis

Framework identifying a firm’s internal Strengths & Weaknesses and external Opportunities & Threats.

Opportunity (SWOT)

External marketplace trend or event a company can leverage for advantage.

Porter’s Generic Strategies

Cost Leadership, Differentiation, and Focus – three ways firms achieve competitive advantage.

Differentiation Strategy

Competing by offering unique value that customers will pay a premium to obtain.

Cost Leadership Strategy

Competing by having the industry’s lowest cost structure and offering lower prices.

Ansoff Matrix

Tool pairing products and markets: Market Penetration, Product Development, Market Development, Diversification.

Product Development (Ansoff)

Creating new products for current customers to increase share of wallet.

Market Development (Ansoff)

Entering new geographic or demographic markets with existing products.

Growth Strategy

Business plan aimed at expanding sales, share, or geographic reach.

Macroenvironment Factors

Sociocultural, Economic, Technological, Environmental, Political-Legal, and Ethical forces affecting firms.

Trade Agreement

Pact among countries to reduce tariffs and other barriers, easing cross-border commerce.

Emerging Market

Economy with rapid growth potential but often limited infrastructure and volatile change.

Global Experience Learning Curve

Stages firms pass—domestic, international, multinational, and global—while gaining foreign-market expertise.

Six Cs of Channel Strategy

Cost, Coverage, Control, Character, Continuity, and Capacity – criteria for choosing distribution partners.

Coverage (Six Cs)

Extent to which a channel partner can reach the target market segments.

Joint Venture

Legally independent entity jointly owned and managed by two or more parent companies sharing risk and control.

Licensing

Granting foreign firm rights to manufacture and sell a product for royalty payments.

Franchising

Contractual system where a firm allows foreign operators to use its brand and business format.

Exporting

Selling domestically produced goods in a foreign country with minimal investment overseas.

Market Research Process

Define problem, Establish research design, Collect data, Analyze, Report findings, Make decisions.

Reliability (Research)

Degree to which research results are consistent and repeatable.

Validity (Research)

Extent to which research measures what it intends to measure.

Descriptive Research

Research designed to describe characteristics of a market or phenomenon.

Secondary Data

Previously collected information used to support a new research objective; may not perfectly fit needs.

Primary Data

New information gathered specifically for the current research question.

Predictive Analytics

Uses historical data to forecast future marketing outcomes and behaviors.

Structured Data

Highly organized information stored in rows and columns (e.g., transaction records).

Unstructured Data

Information without predefined format (e.g., text, images, videos) that is harder to analyze.

Customer Relationship Management (CRM)

Company-wide process of managing interactions to increase acquisition, retention, and profitability.

Customer Acquisition

CRM goal of attracting new prospects and converting them into customers.

Consumer Decision-Making Process

Recognize need ➜ Search for information ➜ Evaluate alternatives ➜ Purchase ➜ Post-purchase evaluation.

Cognitive Dissonance

Post-purchase anxiety or doubt about whether the correct decision was made.

Repositioning

Changing the target market’s perception of a brand by altering marketing mix elements.

Undifferentiated Marketing

Offering one product and one marketing mix to the entire market.

Differentiated Marketing

Developing separate offers for several market segments.

Concentrated (Niche) Marketing

Targeting a single, well-defined segment with one specialized offering.

Customized Marketing

Tailoring products and messages to individual customers (one-to-one marketing).

Core Product (Essential Benefit)

Primary service or benefit that solves a consumer’s basic need.

Enhanced (Augmented) Product

Additional features, services, and benefits that exceed customer expectations.

Convenience Goods

Low-priced, frequently purchased items requiring minimal buying effort.

Shopping Goods

Products for which consumers compare alternatives on price, quality, or style.

Specialty Goods

Unique items that buyers are willing to expend significant effort to obtain.

Unsought Goods

Products consumers do not normally think of buying until a need arises.

Product Life Cycle (PLC)

Introduction, Growth, Maturity, and Decline stages a product passes through over time.

New Product Development Stage 2 – Concept Testing

Refining ideas into detailed concepts and testing them with target customers.

SERVQUAL Assurance

Service quality dimension reflecting employees’ courtesy, competence, and ability to inspire trust.

SERVQUAL Tangibles

Physical facilities, equipment, and appearance of personnel in a service setting.

Customer Delight

Exceeding customer expectations to create exceptionally positive experiences.

Service-Profit Chain

Model linking employee satisfaction to service quality and customer loyalty, which drives profits.

Inseparability (Service)

Characteristic that production and consumption of a service occur simultaneously.

Perishability (Service)

Inability to store services; unused capacity is lost forever.

Credence Attribute

Service quality aspect difficult for consumers to evaluate even after consumption (e.g., medical care).

Price Skimming

Setting a high initial price to maximize revenues from segments willing to pay more.

Penetration Pricing

Introducing a product at a low price to quickly gain market share.

Competitor-Based Pricing

Setting prices with primary consideration of competitors’ levels rather than costs or demand.

Captive Pricing

Low initial price on a core product but high margins on required consumables or accessories.

Cost-Plus Pricing

Adding a fixed percentage markup to the unit cost to arrive at selling price.

Cash Discount

Price reduction offered to buyers for prompt payment of invoices.

Push Strategy

Promotional approach focusing on intermediaries to push products toward end customers.

Vertical Marketing System – Administered

Channel coordinated by the power and size of one dominant member, not by contracts or ownership.

Referent Power

Channel influence based on one firm’s desirable reputation or relationships.

Porter’s Value Chain – Service

Activities (installation, training, repair) that maintain or enhance product value after sale.

Manufacturer’s Agent

Independent intermediary that sells complementary products of multiple manufacturers on commission.

Reach (Advertising)

Percentage of the target audience exposed to a communication at least once.

Frequency (Advertising)

Average number of times each person in the target audience is exposed to the message.

Paid Media

Brand content a firm pays to place (e.g., display ads, search ads).

Owned Media

Channels a company controls (website, blog, mobile app).

Earned Media

Unpaid brand exposure gained through word-of-mouth or editorial coverage.

Pioneering Advertising

Promotional messages aimed at building primary demand for a new product category.

Comparative Advertising

Advertising that explicitly compares a brand with one or more competitors.

Sales Promotion

Short-term incentives, such as discounts or coupons, to stimulate immediate purchase.