Fundamentals of Marketing Lecture Exam Review

Flashcards covering the fundamental concepts of marketing including core concepts, marketing environment, segmentation, product life cycles, pricing strategies, and communication tools based on lecture transcripts.

Marketing (Kotler and Armstrong)

The process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return.

Market (American Marketing Association)

A condition in which buyers and sellers make decisions that enable the transfer of goods and services.

Needs

Fundamental aspects of human creation including basic necessities like food, clothes, social needs like love, and personal wants like knowledge.

Wants

Requirements influenced by both the culture of one's environment and one's own personality; they are unlimited because people always desire better products and new experiences.

Demand

Human wants that are backed by the necessary power or financial resources to provide them.

Marketing Offering

A combination of goods, services, information, and experiences provided to a market in order to satisfy a need or a desire.

Customer Value

The difference between the value customers get from owning and using a product and the cost of getting the product.

Customer Satisfaction

A product's capacity to live up to consumers' desired expectations for a given good or service.

Transaction

The process of obtaining a one-sided deal by giving something else in exchange, involving at least two parties and something of value.

Marketing Ethics

Principles and values that guide the behavior of marketers, emphasizing honesty, responsibility, fairness, and respect for consumers and society.

Social Responsibility in Marketing

The practice of considering the broader impacts of a company's actions on society and the environment to maintain a balance between economy and ecosystems.

Marketing Environment

The internal factors and forces that impact a company's capacity to establish and maintain successful business relationships with target customers.

Microenvironment

The internal factors inside the firm, including the company itself, suppliers, marketing intermediaries, customer markets, competitors, and publics.

Macroenvironment

The larger societal forces including demographic, economic, natural, technological, political, and cultural factors.

Consumer Market

Individuals and households that buy products and services for personal use or for their household.

Business Market

Customers who buy goods and services for further processing or for use in their production process.

Market Segmentation

The method of segmenting a market into identifiable and significant groupings based on shared characteristics.

Target Market

A group of consumers that a business chooses to offer products to and who have similar wants or characteristics.

Market Positioning

The process of arranging for a product to hold a distinct, unique, and desired place in the minds of target market consumers compared to rival items.

Actual Product

The perceivable set of product characteristics including design, brand, image, and quality level that give the product a tangible identity.

Augmented Product

Additional consumer services and benefits provided by the manufacturer, such as delivery, credit, warranty, installation, and after-sales service.

Convenience Product

Inexpensive items purchased frequently with minimal shopping effort, such as newspapers, candies, and cigarettes.

Shopping Product

Items consumers purchase less often, comparing suitability, quality, price, and style, such as homogeneous and heterogeneous goods.

Introduction Stage (PLC)

The period when a new product is first launched, characterized by low sales, high costs, and negative or poor profits.

Growth Stage (PLC)

A period of rapid sales growth where the product is accepted by consumers and unit production costs decrease.

Maturity Stage (PLC)

The stage where sales volume peaks and starts to drop as the majority of customers have bought the product, posing challenges to marketing management.

Decline Stage (PLC)

The period where sales drop due to changes in customer tastes, increased competition, or technological advancements.

Customer Value-Based Pricing

Setting a price based on the consumer's perception of a product's value rather than the seller's cost.

Cost per unit formula

$$\text{Cost per unit} = \text{Variable Cost} + \frac{\text{Fixed Costs}}{\text{Unit Sales}}$$

Mark-up price formula

$$\text{Mark-up price} = \frac{\text{Unit Cost}}{1 - \text{Desired mark-up on selling price}}$$

Wholesalers

Organizations that distribute products from the manufacturer to other intermediaries, buying in bulk and reselling to retailers.

Retailers

Intermediaries primarily engaged in selling products directly to end users in small quantities.

Integrated Marketing Communication (IMC)

The process of combining and coordinating all marketing communication tools into one clear, consistent, and persuasive message.

Public Relations (PR)

Efforts to build a good relationship between a company and various publics to obtain favorable publicity and build a good corporate image.

Sales Promotion

A mass communication technique offering short-term incentives, such as coupons or samples, to encourage the purchase or sale of a product.