Marketing and Market Structures Lecture Notes

Flashcards covering market structures, intermediaries, service concepts, product life cycles, pricing strategies, utility types, marketing mixes, and business strategies based on the lecture transcript.

Monopoly

A market structure where one seller dominates, resulting in no competition and high control over price.

Competitive Market (Perfect Competition)

A market with many sellers and similar products where price is driven by supply & demand.

Oligopoly

A market structure where a few large firms dominate, such as airlines and telecom.

Monopolistic Competition

A market situation where there are many sellers but products are differentiated, making branding important.

Facilitator

An intermediary that helps with logistics such as transport, storage, and financing.

Wholesaler

An intermediary that buys goods in bulk and sells them to retailers.

Distributor

Refers to an intermediary similar to a wholesaler that is often more involved in brand relationships.

Agent/Broker

A middleman who doesn’t own the goods but connects buyers and sellers for a commission.

Retailer

A business that sells products directly to consumers.

Full Service

A service level characterized by high customer support, including assistance from salespeople.

Self Service

A service level where the customer does most of the work, such as at Walmart.

Limited Service

A service level that provides some help to customers but not full assistance.

Intangibility

A characteristic of services meaning they cannot be touched.

Inconsistency

A concept in services where quality can vary.

Introduction

The first stage of the Product Life Cycle (PLC) involving low sales, high costs, and heavy promotion.

Growth

The second stage of the Product Life Cycle (PLC) marked by rapid sales increases and growing profits.

Maturity

The third stage of the Product Life Cycle (PLC) where sales peak and competition is high.

Decline

The final stage of the Product Life Cycle (PLC) where sales drop and the product is updated or phased out.

Loss Leader

A pricing strategy where a product is sold at a loss to attract customers.

Price Leveling

A strategy involving keeping prices consistent across different locations.

Penetration Pricing

A strategy where a low price is set to enter a market.

Skimming

A pricing strategy where a high price is set first and then lowered over time.

Competitive Pricing

Pricing that is based on the prices of competitors.

Psychological Pricing

A pricing tactic that uses prices like $\$9.99$ instead of $\$10$.

Dynamic Pricing

A strategy where prices change based on demand, commonly used by airlines.

Raw Materials

The basic natural resources used in manufacturing.

Component Parts

Processed materials used at intermediate levels of manufacturing.

Finished Goods

The final product sold to consumers.

Corporate Chains

A retailing level featuring multiple locations, such as Target.

Franchises

Independently owned businesses that operate under a brand name, such as McDonald’s.

Independent Retailers

Small or local stores.

Online Retailers (E-commerce)

Businesses that sell goods over the internet.

Form Utility

Value creation through the manufacturing or making of the product.

Place Utility

Value creation by making a product available where it is needed.

Time Utility

Value creation by making a product available when it is needed.

Possession Utility

Value creation by making a product easy to purchase through ownership transfer.

Promotional Mix

A combination of communication tools including Advertising, Sales Promotion, Public Relations (PR), Personal Selling, and Direct Marketing.

Advertising

A promotional tool using paid media.

Sales Promotion

A promotional tool using discounts and coupons.

Public Relations (PR)

A promotional tool focused on managing image and reputation.

Personal Selling

A promotional tool involving salespeople.

Direct Marketing

A promotional tool using email and texts.

Marketing Mix ($4$ Ps)

The combination of Product, Price, Place, and Promotion.

Copyright

Intellectual property protection for creative works such as music and books.

Patent

Intellectual property protection for inventions and processes.

Trademark

Intellectual property protection for brand names, logos, and symbols.

Brand Personality

Human traits associated with a brand, such as Nike being bold or Apple being innovative.

Blue Ocean Strategy

A strategy for creating new, uncontested market space to avoid competition through innovation and uniqueness.

Differentiation Strategy

Making a product stand out based on quality, features, branding, or customer service.

SWOT Analysis

A strategic framework used to evaluate internal Strengths and Weaknesses and external Opportunities and Threats.

Call-to-Action (CTA)

A website design element that prompts a specific response from the user, such as "buy" or "sign up."