Marketing Principles Review Flashcards

Vocabulary-style practice flashcards covering core marketing concepts including product levels, distributions, services, promotion tools, AI tools, and pricing strategies from the lecture notes.

Core customer value

The fundamental benefit the customer is actually buying—not the product itself, but what it does for them.

Actual product

The level of a product built around the core value that includes five elements: brand name, features, quality level, design, and packaging.

Augmented product

Adds extra services and benefits on top of the actual product, such as warranty, after-sales service, delivery, and customer support.

Convenience products

Products bought frequently, immediately and with minimal effort; marketing involves intensive distribution and low pricing.

Shopping products

Products purchased less frequently where customers compare quality, price and style; marketing focuses on selective distribution and quality features.

Specialty products

Products with unique characteristics where buyers make a special effort to obtain them; marketing involves exclusive distribution and premium pricing.

Unsought products

Products consumers don't know about or don't think to buy, requiring aggressive advertising and personal selling.

Intangibility

A service characteristic meaning they cannot be seen, touched or tested before purchase, often overcome by using reviews and photos.

Inseparability

A service characteristic meaning services are produced and consumed at the same time and cannot be separated from the provider.

Variability

A service characteristic meaning quality varies depending on who provides it, when, and where; managed via staff training and standardised procedures.

Perishability

A service characteristic meaning services cannot be stored or saved, and unused capacity results in lost revenue.

Marketing Channels

Used because no single producer has the resources, expertise or scale to reach every customer directly; intermediaries perform reach more efficiently.

Assortment

A channel function where members bring together a wide variety of products so customers can find what they need in one place.

Time utility

A channel function of making products available at the times customers need them.

Place utility

A channel function of bringing products closer to where customers are located.

Possession utility

A channel function enabling the transfer of ownership from producer to customer.

Direct channel

A channel with zero intermediaries where the producer sells straight to the customer, maintaining full control.

Indirect channel

A channel involving one or more intermediaries between the producer and customer.

One-level channel

An indirect channel featuring one intermediary, such as a retailer.

Two-level channel

An indirect channel featuring a wholesaler between the producer and retailer.

Three-level channel

An indirect channel that adds an agent before the wholesaler.

Intensive distribution

Stocking the product in as many outlets as possible; suited for mass-market, everyday products.

Selective distribution

Choosing a limited number of quality outlets; suited for shopping goods where customers compare options.

Exclusive distribution

Using only one or very few outlets per region; suited for luxury products to increase desirability and maintain brand image.

Advertising

Paid, non-personal communication delivered to a mass audience through channels such as TV, radio, print and digital platforms.

Sales promotion

Short-term incentives such as discounts, coupons, flash sales and loyalty points to encourage immediate purchase.

Personal selling

Direct face-to-face interaction between a salesperson and a customer, allowing for two-way communication.

Public relations

Earning media coverage through press releases, events, and sponsorships to build a positive brand image without paying directly for ads.

Direct and digital marketing

Targeting specific customers through email, SMS, social media, and online ads for personalised and measurable communication.

Tina Does Make Coffee So Fine

A mnemonic for the 6 steps in developing effective marketing communications (Identify audience, Determine objectives, Design message, Choose media, Select source, Collect feedback).

ChatGPT

An AI marketing content creation tool used to automatically generate ad copy, captions, and product descriptions at scale.

HubSpot AI

An AI personalisation tool that delivers hyper-personalised emails and web content tailored to individual users.

Hootsuite

A social media management tool that uses AI for scheduling, sentiment analysis and trend detection.

Google Performance Max

A paid advertising tool that uses AI to automate bidding, creative testing and audience targeting.

WhatsApp Business API

A chatbot and CRM tool that enables $24/7$ customer engagement and instant responses.

Value-based pricing

Setting prices based on the customer's perception of value rather than the cost of production.

Cost-based pricing

Setting prices by calculating total production costs—fixed plus variable costs—and adding a profit margin.

Competition-based pricing

Setting prices based on what competitors are charging in the market.

Demand-based pricing

Setting prices based on what customers are willing to pay at a given time.

Psychological pricing

Using price points that feel cheaper or more premium, such as pricing at $99$ instead of $100$.

Price elasticity

A measure of how sensitive demand is to changes in price.

Elastic demand

A situation where a price increase causes a significant drop in demand.

Inelastic demand

A situation where demand stays roughly the same regardless of price changes.

Market skimming

Setting a high initial price when launching a new product to maximise revenue from customers willing to pay a premium.

Market penetration

Setting a low initial price to attract a large number of buyers quickly and capture market share fast.

Product line pricing

Setting different price points across products in the same line based on features and quality differences.

Optional product pricing

Charging extra for optional accessories or add-ons on top of the main product price.

Captive product pricing

Pricing the main product low but charging a premium for the essential accessory that must be used with it.

By-product pricing

Assigning a price to waste or leftovers from production to make the main product more competitively priced.

Product bundle pricing

Combining several products together and selling them at a reduced total price to encourage more buying.

Three Levels of Product

1. core customer value

2. actual product

3. Augmented product

4 Types of Consumer Goods

1. Convenience products

2. Shopping products

3. Speciality products

4. Unsought products

4 Service Characteristics

1. Intangibility

2. Inseparability

3. Variability

4. Perishability

Why Companies Use Marketing Channels

Companies use marketing channels because no single producer has the resources, expertise or scale to reach every customer directly. Intermediaries perform this more efficiently.

Marketing Channel Functions

1. Assortment

2. Time utility

3. Place utility

4. Possession utility

2 levels of channel

Direct channel, indirect channel

3 major channels alternatives

1. Intensive distribution

2. Selective distribution

3. Exclusive distribution

5 promotional tools

1. Advertising

2. Sales promotion

3. Personal selling

4. Public relations

5. Direct and digital marketing

6 Steps in Developing Effective Marketing Communications

1. Identify the target audience

2. Determine communication objectives

3. Design the message

4. Choose the media channels

5. Select the message source

6. Collect feedback

5 AI Marketing Tools

1. Content creation tools

2. Personalization tools

3. Social media management tools

4. Paid advertising tools

5. Chat bot and CRM tools

Key Pricing Concepts

1. Value-based pricing

2. Cost-based pricing

3. Competition-based pricing

4. Demand-based pricing

5. Psychological pricing

6. Price elasticity

5 Product Mix Pricing Strategies

1. Product line pricing

2. Optional product pricing

3. Captive product pricing

4. By-product pricing

5. Product bundle pricing