Principles of Marketing – Key Vocabulary Flashcards

Vocabulary flashcards covering key concepts from the lecture notes on marketing basics, planning, strategy, environment, and global marketing.

Marketing

The full system of activities that create, communicate, deliver, and exchange offerings that have value, including understanding customers, developing the right product, setting a fair price, promoting effectively, and making offerings available where customers buy.

Customers

The people or organizations a firm serves and their needs.

Company

What a firm does well; its resources and limits.

Competition

Other firms that solve the same need.

Context

Trends, economy, laws, culture, and technology affecting marketing.

Collaborators

Partners such as suppliers and distributors.

Product

Features, quality, brand, packaging, and services of a offering.

Price

List price, discounts, and payment terms that signal value.

Promotion

Advertising, PR, social media, and personal selling—how we inform and persuade.

Place

Where and how customers buy; retail, e-commerce, logistics.

Conditions for Exchange

Two or more parties with something of value; a way to communicate and deliver; freedom to accept or reject; a desire to deal.

Production Orientation

A management approach focused on efficiency and high volume.

Sales Orientation

Push to sell; emphasizes promotion and volume.

Market Orientation

Start with customer needs and coordinate activities to satisfy them.

Societal Orientation

Considers customer needs and societal well-being (e.g., sustainability).

Mission (Marketing Plan)

Define the business by customer needs, not by product; avoid marketing myopia.

SWOT

Analysis of Strengths, Weaknesses, Opportunities, Threats.

Objectives

Specific, measurable goals.

Target Market

The customers the firm will serve.

Marketing Mix

The set of choices for Product, Price, Place, and Promotion.

Implementation & Control

Executing the plan, measuring results, and making adjustments.

Ansoff Growth Matrix – Market Penetration

Sell more of existing products to current markets (e.g., loyalty programs).

Ansoff Growth Matrix – Market Development

Enter new markets with current products (e.g., new countries).

Ansoff Growth Matrix – Product Development

Develop new products for current markets (e.g., new versions).

Ansoff Growth Matrix – Diversification

New products in new markets; highest risk.

BCG Matrix – Stars

High growth, high share—require cash; can become cash cows.

BCG Matrix – Cash Cows

Low growth, high share—generate excess cash.

BCG Matrix – Question Marks

High growth, low share—need investment; decide to build or drop.

BCG Matrix – Dogs

Low growth, low share—often divest or harvest.

Cost Leadership

Lowest cost structure; compete on price.

Differentiation

Offer unique value through design, features, brand, or service.

Niche (Focus)

Serve a narrow, specialized segment very well.

Sustainable Advantage

Hard-to-copy advantages (patents, technology, brand, service, location).

Porter’s Five Forces – Rivalry

Competition among existing firms.

Porter’s Five Forces – Threat of New Entrants

Barriers to entry that affect new competitors.

Porter’s Five Forces – Threat of Substitutes

Availability of alternative solutions.

Porter’s Five Forces – Bargaining Power of Buyers

Buyers’ ability to influence prices and terms.

Porter’s Five Forces – Bargaining Power of Suppliers

Suppliers’ leverage over price and terms.

Prisoner’s Dilemma

Competitive behavior that is rational individually but suboptimal collectively; cooperation yields better outcomes.

Nash Equilibrium

A stable outcome where no player benefits by changing strategy alone.

Beach Location Game

Firms drift to center (minimum differentiation) unless they purposefully differentiate.

Environmental Scanning

Continuously monitoring the external environment to forecast trends.

Macroenvironment

Political/Legal, Economic, Social/Cultural & Demographics, Technology, Natural/Environmental forces outside the firm.

Microenvironment

Closer to the firm: company resources and culture, suppliers and intermediaries, customers and competitors.

Scenario Planning

Develop multiple “what if” futures and stress-test the marketing mix for each.

Global Marketing

Marketing strategies and activities across national borders.

Reasons to Go Global

Grow profits, spread risk, leverage unique products/tech, escape saturated home markets, gain economies of scale.

Modes of Entry (Global Marketing)

Exporting, Licensing, Contract Manufacturing, Joint Venture, Direct Investment (increasing control and risk).

Global Marketing Mix Standardization

Standardize product and message when needs are similar across countries.

Global Marketing Mix Adaptation

Adapt product and/or message to differences in culture, regulation, or income.

Pricing Abroad Considerations

Account for exchange rates, tariffs, transport/insurance, local willingness to pay, and arbitrage risk.