Marketing Strategy & Key Concepts Lecture

Vocabulary flashcards covering fundamental marketing strategy, customer value, pricing, channels, brand valuation, and global marketing terms from the lecture notes.

Marketing

The process of creating brand assets that enhance firm value by getting and keeping customers, extending far beyond advertising.

Brand Assets

Intangible attributes and perceptions linked to a brand that boost its overall market value and capitalization.

Firm Value

The total worth of a company, increased by strong brand assets and satisfied customers.

Five C Analyses

Framework of Customer, Company, Collaborator, Competitive, and Context analyses used to craft marketing strategy.

Customer Analysis

Study of what customers want, how they buy, their decision process, and decision-making unit.

Company Analysis

Assessment of product/firm fit, performance, strengths, weaknesses, opportunities, and threats.

Collaborator Analysis

Evaluation of external partners or sources for assets a firm lacks, including make-or-buy decisions.

Competitor Analysis

Identification of rivals, their offerings, market approaches, strengths, and weaknesses.

Context Analysis

Examination of cultural, legal, regulatory, technological, and social factors that shape marketing.

Market Segmentation

Dividing a broad market into sub-groups of consumers with shared characteristics to find high-yield segments.

Demographic Segmentation

Segmenting by observable traits such as age, gender, income, education, or ethnicity.

Geographic Segmentation

Segmenting by location-based factors like region, climate, or population density.

Psychographic Segmentation

Segmenting by lifestyle, values, attitudes, and psychological traits.

Behavioral Segmentation

Segmenting by knowledge, usage, purchase occasion, benefits sought, or loyalty status.

Targeting

Selecting specific market segments on which to focus marketing resources.

Positioning

Designing a firm’s offering and image to occupy a distinctive place in the target market’s mind.

Marketing Mix (4 Ps)

The tactical toolkit of Product, Price, Place, and Promotion used to deliver value.

Product

What a firm offers for sale—goods or services—including core benefits and augmented features.

Core Product

The fundamental benefit or service the customer is actually buying.

Augmented Product

Extra features, services, or benefits added to the core product to enhance value.

Promotion

All communication activities—advertising, sales promotion, PR—used to inform and persuade customers.

Place (Channel Strategy)

Where and how a firm makes its product available, including selection of distribution channels.

Price

Monetary amount charged for a product; the only marketing-mix element that directly generates revenue.

Customer Value

Customer’s overall assessment of benefits received versus total sacrifices (costs).

Economic Value

Tangible financial benefit perceived by customers, such as cost savings or ROI.

Functional Value

Utility derived from a product’s practical performance and attributes.

Social Value

Benefit gained from product’s association with social groups, enhancing status or belonging.

Experiential Value

Value created by the overall customer experience and emotional connection with a brand.

Customer Lifetime Value (CLV)

Predicted total net profit from an individual customer over the entire relationship duration.

Churn Rate

Percentage of customers who stop doing business with a company during a period.

Customer Acquisition Cost (CAC)

Total marketing and sales expense required to obtain a new customer.

CLV/CAC Ratio

Benchmark comparing lifetime value to acquisition cost; healthy ratio ≈ 3:1.

RFM Analysis

Segmentation by Recency, Frequency, and Monetary value of customer purchases; foundation for predictive CLV.

Sales-Led Growth (SLG)

Go-to-market model relying on a direct sales force to close complex deals.

Product-Led Growth (PLG)

Model in which the product itself drives user acquisition, activation, and expansion.

Pay-for-Performance (P4P)

Model where clients pay only when predefined results are achieved.

Evangelist-Led Growth (ELG)

Strategy leveraging early adopters who actively promote the product to peers.

Cost-Reduction Pitch

Sales positioning that emphasizes a product’s ability to cut customer expenses.

Value-Enhancement Pitch

Positioning that stresses how a product increases revenue, efficiency, or competitive advantage.

Multichannel Marketing

Using multiple independent channels to reach customers, often with siloed execution.

Omnichannel Marketing

Integrated, customer-centric approach delivering a seamless experience across all channels.

Channel Conflict

Friction arising when multiple distribution channels compete for the same sales.

Key Performance Indicators (KPIs)

Quantifiable metrics used to gauge effectiveness of marketing activities.

Unified Data Infrastructure

Interconnected tech backbone enabling real-time sharing and analysis of customer data across channels.

Value-Based Pricing

Setting prices according to perceived customer value rather than cost or competition alone.

Break-Even Analysis

Tool that determines the sales volume at which total revenue equals total cost.

Price Skimming

Market-entry strategy of launching with a high price to capture margins from early adopters, then lowering over time.

Penetration Pricing

Introducing a product at a low price to quickly gain market share and discourage competitors.

Charm Pricing

Psychological tactic of ending prices with .9 or .99 to make them seem lower (e.g., $19.99).

Decoy Effect

Introducing an inferior option to nudge customers toward a more profitable choice.

Dynamic Pricing

Real-time price adjustments based on demand, inventory, competitor prices, or external events.

AI-Driven Algorithmic Pricing

Use of machine-learning algorithms to set or adjust prices automatically and continuously.

Brand Valuation

Systematic estimation of a brand’s total financial worth as an intangible asset.

Brand Equity

Value derived from consumer perceptions and experiences that influence willingness to pay.

Brand Value

Monetary worth of a brand to its owner, often tied to incremental cash flows.

Cost Approach (Brand)

Valuing a brand based on the cost to create or replace it.

Market Approach (Brand)

Valuing a brand by comparing prices paid for similar brands in the market.

Income Approach (Brand)

Valuing a brand by discounting future economic benefits (cash flows) it will generate.

Standardization

Using the same marketing mix worldwide for efficiency and consistent global image.

Adaptation

Customizing the marketing mix to fit local market needs and preferences.

Glocalization

Hybrid strategy combining global standardization of core elements with local adaptation of others.

Transcreation

Culturally adapting marketing content so the original message resonates in another language or culture.

Licensing

Granting foreign entities rights to use IP in exchange for royalties, allowing low-risk market entry.

Franchising

Allowing a foreign partner to operate a business format under strict brand standards for fees and royalties.

Foreign Direct Investment (FDI)

Establishing or acquiring business operations abroad to gain control and long-term presence.