Marketing Strategy, Consumer Behavior, and Value Management Flashcards

Comprehensive vocabulary flashcard set created from lecture transcripts covering fundamental marketing principles, strategy, consumer behavior, market research, STP, branding, services, and pricing.

Marketing

The activities, set of institutions, and processes for creating, delivering, and exchanging offerings that have value for customers.

Direct Marketing

Communicating directly with targeted consumers to generate an immediate response and build long-term relationships.

Interactive Marketing

A strategy that uses digital technologies and data to create personalized interactions between a brand and its customers, encouraging active participation.

Product Benefits

The functional value provided by a product.

Service Benefits

The added value created through support or experience.

Perceived Sacrifices

The costs or efforts customers feel they must invest in a product or service, including monetary, time, energy, and psychological costs.

Managerial Perspective

A marketing perspective that focuses on marketing as a business function, concerned with how organizations plan, implement, and control activities.

Consumer Perspective

A marketing perspective that examines how consumers interact with and respond to marketing, looking at needs and behavioral influence.

Macromarketing Perspective

A societal perspective that explores the broader role and impact of marketing on society, including ethics, sustainability, and social responsibility.

Marketing Mix

A foundational framework companies use to plan and execute marketing strategy, integrated across Product, Price, Place, and Promotion.

Strategy

The determination of the basic, long-term goals of an enterprise and the adoption of courses of action and allocation of resources necessary to carry out these goals.

Business Mission

A broad and enduring statement of purpose that explains why a company exists and what distinguishes it from other businesses.

Vision Statement

A future-oriented statement designed to inspire both shareholders/employees and customers.

Marketing Planning

The process by which businesses analyze the environment and their capabilities, decide upon marketing actions, and implement and monitor those decisions.

Marketing Information System (MkIS)

A formal system for gathering, storing, analyzing, and distributing marketing information to managers to improve decision-making.

Internal Market Information

Data collected from inside the organization, such as sales records, customer databases, and financial reports, serving as the starting point for analysis.

Environmental Scanning

Monitoring and analyzing a company's marketing environment using frameworks like PESTEL and Porter's Five Forces to respond to unexpected events.

Market Intelligence

Day-to-day information on competition and market developments, including competitor moves, pricing strategies, and customer behavior.

Marketing Research

A formal, systematic process designed to collect and analyze data relevant to answer specific questions or solve particular marketing problems.

SWOT Analysis

A structured framework summarizing internal factors (Strengths and Weaknesses) and external factors (Opportunities and Threats) resulting from a marketing audit.

SMART Objectives

Specific, Measurable, Achievable, Relevant, and Time-bound targets that break general marketing goals down into actionable outcomes.

Company Metrics

Performance measures that evaluate business outcomes to show if marketing efforts are contributing to growth and profitability.

Consumer Metrics

Performance measures focusing on how customers perceive and behave, tracking customer relationships and loyalty.

Customer Insight

A deep understanding of customer needs, motivations, and behaviors gained by analyzing and interpreting marketing information.

Private Consumers

Individuals or households who purchase products for personal use.

Organizational Customers

Companies, institutions, or organizations that buy products and services for operations, manufacturing, or reselling.

Initiator

The person in a decision-making role who first recognizes a need or suggests purchasing a product or service.

Influencer

The person who affects the purchase decision by giving opinions, advice, or information to shape choice criteria.

Decider

The person with the power or financial authority to make the final choice about what to buy.

Gatekeeper

A specific role in B2B purchasing who controls the flow of information and access to members of the decision-making unit.

Extended Problem Solving

A complex, high-involvement decision process involving expensive or infrequent items, significant perceived risk, and thorough research across alternatives.

Habitual Problem Solving

Repeat purchases made with minimal effort, low involvement, and little thought because the consumer is satisfied or bound by habit.

Limited Problem Solving

A purchase decision of moderate importance where consumers spend some time comparing options using moderate involvement.

Variety-Seeking Behaviour

Brand or product switching driven by curiosity or a desire for change rather than dissatisfaction, involving low involvement.

Customer Touchpoints

Points of interaction between a customer and a business across the entire journey before, during, and after purchase.

Consumer Decision Journey

A circular model of buying behavior where post-purchase experiences and digital search continuously shape evaluation and the loyalty loop.

Awareness Set

All the brands in a product category that a consumer is aware of and can recall when solving a problem.

Evoked Set

The filtered shortlist of brands from the awareness set that a consumer seriously considers buying.

Post-Purchase Consonance

Positive disconfirmation occurring when a product performs as expected or better, leading to customer satisfaction and reassurance.

Post-Purchase Dissonance

Negative disconfirmation creating psychological tension or cognitive dissonance when a product performs worse than expected.

Just-in-Time (JIT) Purchasing

An organizational purchasing practice focusing on purchasing materials at the exact right time to minimize inventory carrying costs.

Reverse Marketing

An organizational purchasing practice where buyers proactively seek out suppliers rather than waiting to be targeted by vendors.

Information Processing Approach (IPA)

A cognitive psychology paradigm treating consumption as a rational, stepwise process evaluating alternatives to maximize utility.

Consumer Culture Theory (CCT)

A perspective viewing consumption as a social and cultural process where consumers use brands to express identity and create meaning.

Risk-Averse Consumers

Buyers who prefer safe, reliable options to minimize uncertainty and risk.

Risk-Seeking Consumers

Buyers who enjoy taking chances in purchase decisions, even when safer options offer higher guaranteed value.

Social Capital

Networks, connections, and relationships that influence consumer buying behavior.

Cultural Capital

Knowledge, education, and taste that influence which products or brands a consumer values.

Volume (Big Data)

The scale and massive amount of data generated daily in modern digital environments.

Velocity (Big Data)

The speed at which data flows and is analyzed in real time.

Variety (Big Data)

The distinct structural forms of data generated, including text, images, videos, clicks, and sensor logs.

Veracity (Big Data)

The degree of uncertainty, quality, or reliability associated with collected data.

Social Listening

Monitoring social media conversations without asking direct questions to understand public sentiment, trends, and brand feedback.

Webscraping

The automated extraction of structured data from websites for market analysis, price tracking, and competitor monitoring.

Ad-Hoc Research

Market research conducted for a specific problem at a single point in time using one sample to provide a snapshot.

Continuous Research

Market research conducted repeatedly on the same sample over time to track trends and behavioral changes.

Qualitative Research

Research methods exploring underlying attitudes, feelings, and motivations using small samples to produce deep insights.

Quantitative Research

Research methods measuring and quantifying consumer behavior using structured tools and large representative samples.

Ethnography

Immersive observation and interviews conducted in consumers' natural daily environments to gain contextual qualitative insights.

Netnography

The adaptation of ethnographic research techniques to observe consumer interactions and communities online.

Neuromarketing

The use of neuroscience tools to study consumers' unconscious physical and brain reactions to advertisements, products, or packaging.

Market Share

The percentage of total category purchases belonging to a specific brand, calculated as \text{Market Share} = \n\left(\frac{\text{Total purchase of the brand}}{\text{Total purchase of the category}}\right) \times 100\%.

Market Penetration

The percentage of potential customers who buy a brand at least once in a given timeframe, calculated as $\text{Market Penetration} = \left(\frac{\text{Number of people buying the brand}}{\text{Total number of potential customers}}\right) \times 100\%$.

Repeat Buying

The act of a consumer purchasing the same brand more than once within a given time period.

STP Model

The strategic framework consisting of Segmentation (dividing the market), Targeting (selecting segments), and Positioning (establishing a distinct image).

Psychographic Segmentation

Dividing a market based on consumer lifestyles, values, interests, and personality traits to explain why they buy.

Profile Segmentation

Grouping consumers based on external demographic and geographic traits such as age, gender, income, and location.

Behavioral Segmentation

Segmenting consumers based on their actual usage, purchase occasions, loyalty, and response to a product.

Undifferentiated Marketing

A mass marketing strategy using a single marketing mix for the entire market, focusing on common customer needs.

Differentiated Marketing

A strategy designing separate marketing mixes tailored to multiple distinct market segments to capture broader market share.

Focused Marketing

A niche strategy directing a firm's single marketing mix toward one specific market segment, ideal for firms with limited resources.

Customized Marketing

One-to-one marketing tailoring the marketing mix to each individual customer's unique preferences.

Personalization

The automated use of data and digital technology to deliver individualized messages, products, and experiences to specific customers.

Segmentation Profitability Formula

The formula defined as $\text{Segment Profitability} = (\text{Segment size} \times \text{Adoption \%} \times \text{Purchase behaviour} \times \text{Profit margin \%}) - \text{Fixed costs}$.

Five Tests for Good Segmentation

Evaluation criteria requiring a market segment to be Effective, Measurable, Accessible, Actionable, and Profitable.

Four Keys to Successful Positioning

Strategic criteria requiring positioning to possess Clarity, Consistency, Credibility, and Competitiveness.

Perceptual Map

A two-dimensional visual diagram plotting consumer perceptions of competing brands along key attribute dimensions.

Satisfiers

Essential product elements required just to enter a market that do not differentiate a brand because all competitors supply them.

Table Stakes

The minimum standard of product or service performance customers expect in an industry to consider a brand.

Value Adders

Features or benefits that go beyond basic expectations and begin to make a brand stand out as more attractive.

Differentiators

Unique brand attributes that distinctly separate a firm from competitors and give the strongest reason to buy.

Image Repositioning

A repositioning strategy maintaining the same product and target market while altering customer brand perception.

Product Repositioning

A repositioning strategy modifying product features while serving the same target market.

Intangible Repositioning

A repositioning strategy directing the same existing product toward a new target market by modifying marketing positioning appeals.

Tangible Repositioning

A major strategic shift involving launching a new product into a new target market.

Core Product

The fundamental basic benefit or problem-solving capability that a customer is buying.

Actual Product

The tangible, physical item or visible features—including design, quality, brand name, and packaging—that delivers the core benefit.

Augmented Product

Additional supporting services and non-physical benefits added to enhance customer experience beyond the actual product.

Brand Identity (Stage 1)

The foundational stage of building a brand answering 'Who are you?' by establishing deep, broad brand awareness.

Brand Meaning (Stage 2)

The stage of brand building answering 'What are you?' by establishing points of parity and difference.

Brand Response (Stage 3)

The stage of brand building answering 'What about you?' by evoking positive, accessible consumer judgements and feelings.

Brand Relationships (Stage 4)

The highest stage of brand building answering 'What about you and me?' by creating intense, active loyalty and resonance.

Product Line Breadth

The total number of distinct product lines offered by a company across different market categories.

Product Line Depth

The total number of item variations available within a single product line.

BCG Matrix

A portfolio planning model classifying Strategic Business Units based on Market Growth Rate and Relative Market Share.

Stars (BCG Matrix)

High-growth, high-market share products that require heavy investment to finance rapid growth and later turn into cash cows.

Cash Cows (BCG Matrix)

Low-growth, high-market share products that generate strong cash flows with minimal maintenance investment.

Problem Children / Question Marks

Low-market share products operating in high-growth markets that require heavy cash investment to build share.

Dogs (BCG Matrix)

Low-growth, low-market share units that generate little cash and offer weak market positioning.

Product Life Cycle (PLC)

The four-stage model (Introduction, Growth, Maturity, Decline) conceptualizing how product sales and profits evolve over time.