Marketing Fundamentals and Strategy Vocabulary Flashcards

Vocabulary terms and definitions extracted directly from the marketing unit exam review transcript.

Target Market

A specific group of customers on whom an organization focuses its marketing efforts.

Marketing Mix

A combination of key variables built around customers, comprising product, price, promotion, and distribution.

Good

A physical product that can be touched.

Service

The application of mechanical and human efforts to either people or objects to provide intangible benefits to customers.

Idea

A concept, philosophy, or issue marketed to educate, persuade, or create awareness.

Promotion

An element of the marketing mix used to inform, persuade, or increase awareness of a product or company.

Marketing Environment

A dynamic and changing set of forces that indirectly influence marketing activities.

Marketing Concept

A management philosophy stating that an organization should try to satisfy customers' needs while also achieving organizational goals.

Production Orientation

A business orientation focused heavily on manufacturing and production efficiency, prevalent during the Industrial Revolution when demand was strong.

Sales Orientation

A business orientation viewing sales as the primary means of increasing profits, adopted when market competition increased.

Relationship Marketing

Establishing long-term, mutually beneficial arrangements in which both buyer and seller focus on value enhancement through more satisfying exchanges.

Customer Relationship Management (CRM)

A strategy centered on building and maintaining long-term relationships with profitable customers as its key objective.

Socially-Responsible Marketing

Initiatives intended to improve an organization's positive impact on society and the natural environment.

Stakeholders

A company's constituents, comprising customers, employees, shareholders, suppliers, governments, communities, and competitors.

Value

A customer's subjective assessment of benefits relative to costs in determining the worth of a product.

Monetary Price

The most obvious customer cost that a buyer gives up to obtain the benefits a product provides.

Market Orientation

A business approach that determines what customers need or want and develops products to satisfy those needs and wants.

Marketing Plan

A written document detailing and specifying activities to implement and control an organization's marketing actions.

Market Opportunity

A combination of circumstances occurring at the right time that allows an organization to take action toward a target market.

Competitive Advantage

The result created when a company matches its core competency to opportunities discovered in the marketplace.

Strengths

Internal competitive advantages or positive attributes, such as strong name recognition or solid customer demand.

Opportunities

Favorable external conditions in the marketplace environment that could produce rewards if acted upon properly.

Mission Statement

A foundational declaration from which an organization's business goals should be derived.

Strategic Business Unit (SBU)

A profit center within a business organization that is self-supporting in terms of sales, markets, production, and other resources.

Market

A group of individuals or organizations that has the need, willingness, ability, and authority to buy a product.

Stars

In the Boston Consulting Group product matrix, products characterized by a dominant share of the market and good prospects for growth.

Market Share

The percentage of a market that actually buys a specific product from a specific company.

Marketing Implementation

The process of putting marketing strategies into action.

Centralized Organization

A organizational structure where decision-making is slow and top-level managers delegate very little authority.

Performance Standard

An expected level of performance against which actual performance can be compared.

Market Development

A strategic growth approach centered on increasing sales of current products in new markets.

Product Development

A strategic growth approach centered on introducing new products into existing markets.

First-Mover Advantage

The ability of an innovative company to achieve long-term competitive advantages by being the first to offer a certain product.

Late-Mover Advantage

The ability of later market entrants to achieve long-term competitive advantages by learning from earlier mistakes and not being the first to offer a product.

Upward Communication

Communication channels that allow marketing managers to understand the problems and requirements of lower-level employees.

Marketing Cost Analysis

The evaluation practice of breaking down and classifying costs associated with specific marketing efforts and comparing them with results.

Environmental Analysis

A detailed assessment of competitive, economic, political, legal, regulatory, technological, and sociocultural factors.

Market Penetration

A growth strategy focused on increasing sales of current products in current markets.

Strategic Planning

The process in which managers revise mission and goals, and develop corporate strategy, marketing objectives, marketing strategy, and a marketing plan.

Marketing Strategy

The process of selecting and analyzing a target market and creating a marketing mix to satisfy individuals in that market.

Corporate Strategy

A strategy determining the means for utilizing resources across functional areas such as marketing, production, and finance to achieve organizational goals.