X105 Exam 3 - Marketing

Marketing

The process of creating, communicating, delivering, and exchanging offerings that have value for customers.

Market

All individuals or organizations that have needs or wants and the ability and willingness to buy.

Value

The ratio of benefits received to what is given up (cost) in exchange.

Perceived value

The customer's opinion of a product's value compared to alternatives.

Marketing concept

The idea that businesses should satisfy customer needs while achieving organizational goals.

Marketing mix

The combination of product, price, place, and promotion used to market goods or services.

4 Ps of marketing

Product, Price, Place, and Promotion—the core elements of marketing strategy.

Product

Anything offered to satisfy a want or need (goods, services, or ideas).

Price

The amount paid in exchange for a product or service.

Place

The distribution or location where a product is made available.

Promotion

Communication designed to inform, persuade, or remind customers.

Marketing process

Steps businesses take to understand consumers, create value, and build relationships.

Marketing research

The collection and analysis of data to make marketing decisions.

Primary data

Data collected firsthand for a specific purpose.

Secondary data

Data previously gathered for another purpose.

Marketing environment

External forces that affect marketing decisions (economic, social, tech, etc.).

Environmental scanning

Monitoring external factors to detect opportunities or threats.

Global factors

International influences such as exchange rates and trade laws.

Technological factors

New inventions or systems that change how products are marketed.

Sociocultural factors

Society's values, attitudes, and demographics that shape behavior.

Competitive factors

Rival firms that compete for the same customers.

Economic factors

Conditions like inflation, income, and unemployment that affect buying power.

Market segmentation

Dividing a market into groups with similar characteristics.

Market segment

A group of customers with shared traits or needs.

Target market

The specific segment a firm chooses to serve.

Target marketing

Directing marketing efforts toward a selected segment.

Convenience products

Inexpensive items bought often with little effort.

Shopping products

Products compared carefully for price, quality, and style.

Specialty products

Unique items that consumers will make special efforts to find.

Unsought products

Items consumers don't think about or want until needed (e.g., insurance).

Business products

Goods used to produce other goods or resold to others.

Raw materials

Basic natural materials used in production.

Component parts

Finished items used in producing another product.

Installations

Major capital items like buildings or large equipment.

Supplies

Everyday items not part of the final product.

Business services

Intangible products firms buy (e.g., consulting).

Packaging

The container that protects and markets a product.

Bundling

Combining multiple products for one price.

New product development process

Steps to bring a new product to market.

Idea generation

Brainstorming new product concepts.

Screening

Evaluating ideas for feasibility.

Analysis

Estimating costs and profitability.

Development

Designing and building prototypes.

Testing

Trying the product in limited markets.

Commercialization

Full-scale product launch.

Product item

A single version of a product.

Product line

A group of related products.

Product mix

All product lines offered by a company.

Width of product mix

Number of different product lines.

Depth of product line

Number of products in a single line.

Product modification

Changing quality, function, or style.

Quality modification

Changing durability or dependability.

Functional modification

Changing product use or performance.

Style modification

Changing appearance.

Repositioning

Changing consumer perceptions of a product.

Product line extension

Adding products to an existing line.

Product line contraction

Removing products from a line.

Product differentiation

Creating a distinct image in consumers' minds.

Positioning

How a product is perceived relative to competitors.

Perceptual map

A visual chart showing how customers view brands.

Product Life Cycle (PLC)

The stages of a product from introduction to decline.

Introduction stage

Product launch with low sales and high costs.

Growth stage

Sales rise rapidly and profits increase.

Maturity stage

Peak sales; competition intensifies.

Decline stage

Sales fall as product loses popularity.

Brand

Name, symbol, or design identifying a seller's products.

Brand name

The spoken part of a brand.

Brand mark

The visual symbol of a brand.

Brand equity

The value from brand recognition and loyalty.

Manufacturer brand

Brand owned by the producer.

Private label brand

Brand owned by a retailer.

Brand loyalty

Consistent preference for a brand.

Brand awareness

Extent to which consumers recognize a brand.

Brand manager

Person responsible for managing a brand's marketing.

Pricing objectives

Goals that guide pricing decisions.

Break-even pricing

Price needed to cover all costs.

Target return on investment

Pricing to achieve a specific profit percentage.

Market share pricing

Setting prices to increase market share.

Traffic or sales objective

Pricing to attract customers and boost volume.

Image-based pricing

Setting price to reflect prestige or quality.

Social objective pricing

Setting prices to support social goals.

Competition-based pricing

Setting price based on competitors.

New product pricing

Pricing new products for market entry.

Price skimming

High initial price to maximize profits early.

Penetration pricing

Low initial price to gain market share quickly.

Psychological pricing

Pricing based on emotional response.

Odd-number pricing

Ending prices in .99 to seem cheaper.

Multiple-unit pricing

Offering more than one for one price.

Reference pricing

Showing a regular price next to a sale price.

Bundle pricing

Combining products for one price.

Everyday low pricing (EDLP)

Always low prices, no frequent sales.

High-low pricing

Alternating between high regular prices and discounts.

Product line pricing

Pricing products in a line based on differences.

Captive pricing

Low price for main product, high for accessories.

Premium pricing

Higher price for superior or luxury products.

Price lining

Set price tiers for product versions.

Profit

Revenue minus total costs.

Break-even point

Number of units needed to cover total costs.

Variable cost

Cost that changes with production.

Fixed cost

Cost that remains constant regardless of output.