Marketing in Today’s Economy: Practice Flashcards

Comprehensive vocabulary terms and definitions covering marketing strategy, economy factors, consumer behavior, and planning based on chapters 1-10 of the lecture transcript.

Marketplace

A physical location for buyers and sellers to conduct transactions.

Marketspace

Digital markets that are unbound by time or space, typically associated with e-commerce.

Idea

An issue aimed at promoting a benefit for the customer, such as the goals of Mothers Against Drunk Driving.

Form Utility

The ability of a product to satisfy a customer’s desires based on high-quality raw materials or high efficiency.

Time Utility

The satisfaction derived from products being available now rather than later, such as 24/7 shops.

Place Utility

Ensuring products are available wherever the customer happens to be at that moment, such as grocery delivery services.

Possession Utility

The satisfaction derived from the transfer of ownership or title from the marketer to the customer, often enhanced by supplemental services.

Psychological Utility

Positive experiential or psychological attributes that customers find satisfying, common in sporting events.

Tactical Planning

Addressing specific markets or segments and developing marketing programs to fulfill the needs of those customers.

Competitive Intelligence

The legal and ethical process of analyzing the capabilities, vulnerabilities, and intentions of competitors.

Environmental Scanning

The analysis of economic, political, legal, technological, and cultural trends that can affect the future of the organization.

Situation Analysis

The process of collecting and interpreting internal, competitive, and environmental information to describe current and future issues affecting the firm.

Integrated Marketing Communication (IMC)

Coordination of all promotional activities, including media advertising, social media, direct marketing, and personal selling, to ensure a consistent message.

Social Responsibility

An organization’s obligation to maximize its positive impact on society while minimizing its negative impact.

Marketing Ethics

Standards that define acceptable conduct in marketing activities.

Mission Statement

A paragraph that answers 'What business are we in?' by describing the firm's purpose, customers, and operating philosophy.

Vision Statement

A description that answers 'What do we want to become?' for an organization.

ESG Framework

A system used to capture business success factors not found in financial measures, consisting of Environmental, Social, and Governance criteria.

Analytics

The discovery of trends and patterns in data through analysis techniques.

Insights

The value of data and analytics as outcomes that identify usable information to improve marketing performance.

Dashboard

A tool that visually shows real-time results for evaluating metrics by brand, product line, or division.

Derived Demand

A situation where the demand for one product depends on the demand for another product.

Brand Competitors

Firms that market products with similar features, benefits, and prices.

Generic Competitors

Firms that market very different products that solve the same problem or satisfy the same basic customer need.

Total Budget Competitors

Firms that compete for the limited financial resources of the same customers.

Frontstage Technology

Technological advances that are directly noticeable to customers, such as genetic engineering or smartphones.

Backstage Technology

Technological advances that are not seen by customers but improve efficiency, such as computer-based warehouse storage.

PESTEL Analysis

A framework for analyzing the external environment using Political, Economical, Social, Technological, Environmental, and Legal factors.

SWOT Matrix Magnitude

A quantification of how much each SWOT element affects the firm, ranging from $3$ (high) to $-3$ (low/negative).

Operational Excellence

A source of competitive advantage where a firm operates on low costs through efficiency in processes.

Product Leadership

A source of competitive advantage derived from excelling in technology and product development.

Customer Intimacy

A competitive advantage based on building long-term relationships and understanding customer needs better than others.

Aggressive Strategic Focus

A direction for strategic effort involving internal strengths and external opportunities to pursue expansion and growth.

Defensive Strategic Focus

A direction for strategic effort involving internal weaknesses and external threats, sometimes leading to bankruptcy for restructuring.

Strategy Canvas

A tool for visualizing a firm’s strategy relative to other firms in the same industry.

Netnography

A qualitative research technique designed to understand cultural phenomena through communication and personal interests.

Evoked Set

A set of potential product alternatives that consumers expand or reevaluate before making a final purchase.

Hard Costs

Monetary price and associated purchase costs such as shipping and installation.

Soft Costs

Non-monetary costs such as downtime and opportunity costs.

Reciprocity

A business market practice where a firm buys from another firm with the expectation that the second firm will also buy from them.

Niche Marketing

Targeting a unique, specific set of needs for which customers are often willing to pay higher prices.

Permission Marketing

An approach where customers give companies permission to specifically target them, such as by joining an email list.

Greenwashing

The practice of misleading consumers into thinking a service or product is environmentally friendly when it is not.

Price Fixing

An illegal practice under the Sherman Act where rival firms collaborate to set prices.

Predatory Pricing

An illegal practice where a firm charges extremely low prices to drive competitors out of business with the intent to raise prices later.

Superficial Discounting

Advertising a sale price as a reduction below the normal price when it is actually the standard price.

Product Mix (Portfolio)

The total group of products offered by a company.

Assortment

The depth of each product line, catering to different segments such as Hilton's various hotel brands.

Break-even Pricing

$$\frac{\text{Total Fixed Cost}}{\text{Unit Price} - \text{Unit Variable Costs}}$$

Cost-plus Pricing

$$\frac{\text{Average Unit Cost}}{1 - \text{Markup Percent}}$$

Perceived Value Formula

$$\frac{\text{Customer Benefits}}{\text{Customer Costs}}$$

Customer Churn

A metric indicating when services are not renewed because the customer no longer sees value in the product.

Yield Management

A strategy allowing service firms to simultaneously control capacity and demand to maximize revenue.

Price Skimming

A base price strategy that starts with a high price and drops it over time to capture early profits.

Freemium Pricing

Offering free trials or a basic free version to gain customers for a product.

Slotting Allowances

Hefty fees manufacturers pay to retailers to get a single product placed on store shelves.

AIDA Model

A classic model outlining promotional goals: Attention, Interest, Desire, and Action.

Pull Strategy

Focusing promotional efforts toward the consumer to stimulate demand and pressure the supply chain to carry the product.

Push Strategy

Focusing promotional efforts on members of the supply chain to motivate them to sell the product.

Brand Insistence

The strongest degree of brand loyalty where customers will not accept substitutes and go out of their way to find the specific brand.

Brand Equity

The marketing and financial value associated with a brand’s position in the market.

Harvesting

A strategy in the decline stage of the Product Life Cycle where marketing expenditures are reduced to reuse money for other products.

Divest

The complete withdrawal of all marketing support from a product during its decline stage.

Intended Marketing Strategy

The strategy that a firm originally planned or wanted to happen.

Realized Marketing Strategy

The strategy that actually takes place in the market.

Internal Marketing

An approach designed to motivate and coordinate employees to help them understand and accept their roles in implementing marketing strategy.

Output Controls

Formal controls designed to ensure marketing outcomes are in line with expected results by comparing performance against standards.

Value Consumption Gap

The gap that occurs when value updates, like new library content on Netflix, are not communicated to or noticed by the customer.