Marketing Principles Flashcards

Vocabulary flashcards covering core concepts, frameworks, definitions, and theories from Chapters 1 through 19 of the Marketing lecture notes.

Marketing

The activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.

Exchange

The trade of things of value between a buyer and a seller so that each is better off after the trade.

Market

People with both the desire and the ability to buy a specific offering.

Target Market

One or more specific groups of potential consumers toward which an organization directs its marketing program.

Marketing Mix

The four controllable factors—product, price, promotion, and place—that a marketing manager uses to solve a marketing problem.

Strategic Business Unit (SBU)

A subgroup or level within a multimarket, multiproduct firm where managers direct a portfolio or group of businesses with a specific strategic direction.

Marketing Myopia

A short-sighted management approach where organizations define their business and target customers too narrowly, focusing on products rather than satisfying underlying consumer needs.

Market Share

The ratio of sales revenue of the firm to the total sales revenue of all firms in the industry, including the firm itself.

BCG Matrix

A strategic portfolio analysis tool that classifies strategic business units into four quadrants (Question Marks, Stars, Cash Cows, and Dogs) based on relative market share and market growth rate.

Diversification Analysis

A technique that helps a firm search for growth opportunities among current and new markets as well as current and new products (yielding market penetration, market development, product development, and diversification strategies).

Environmental Scanning

The process of continually acquiring information on events occurring outside the organization to identify and interpret potential trends.

Discretionary Income

The money that remains in a household after paying for taxes and necessities, available for non-essential goods and luxury items.

Consumer Bill of Rights

A law codifying consumer protection introduced in 1962 that established the right to safety, to be informed, to choose, and to be heard.

Sustainable Marketing

The effort to meet the current needs of consumers and businesses without compromising the ability of future generations to meet their needs.

Cognitive Dissonance

The feeling of post-purchase psychological tension or anxiety a consumer experiences when faced with two or more highly attractive alternatives.

Consumer Journey Map

A visual representation of all touchpoints a consumer comes into contact with regarding a company's products, services, or brand before, during, and after purchase.

Brand Community

A specialized group of consumers who share a set of social relationships based upon usage of or interest in a brand.

Derived Demand

Demand for industrial products and services that is driven by, or derived from, demand for consumer products and services.

Buying Center

A cross-functional group of individuals within an organization who participate in the buying process and share common goals, risks, and knowledge necessary for a purchasing decision.

Trade Feedback Effect

The phenomenon in world trade where a nation's imports affect its exports and its exports affect its imports in a complementary economic cycle.

Protectionism

The practice of shielding one or more industries within a country's economy from foreign competition through the use of tariffs or quotas.

Multidomestic Marketing Strategy

A strategy used by multinational firms that involves offering as many different product variations, brand names, and advertising programs as there are countries in which they do business.

Primary Data

Facts and figures that are newly collected specifically for the project at hand.

Cross Tabulation

A method of presenting and analyzing the relationship between two or more variables in a simple tabular format.

Market Segmentation

Aggregating prospective buyers into groups or segments that have common needs and will respond similarly to a marketing action.

Customer Lifetime Value (CLV)

The total financial worth of a customer to a company over the entire duration of their relationship, factoring in usage rate, loyalty, and costs to serve.

Perceptual Map

A two-dimensional grid displaying the location of products or brands in the minds of consumers relative to key competitive attributes.

Product Line

A group of product or service items that are closely related because they satisfy a similar class of needs, are used together, or are sold to the same customer group.

New Product Vitality Index (NPVI)

A metric calculated as sales from new products introduced in the past three years divided by total company sales, measuring innovation success.

Product Life Cycle

The stages a new product goes through in the marketplace: introduction, growth, maturity, and decline.

Brand Equity

The added value a brand name gives to a product beyond the functional benefits provided.

Price Elasticity of Demand

The percentage change in quantity demanded relative to a percentage change in price, measuring consumer sensitivity to price changes.

Break-Even Point (BEP)

The quantity of output at which total revenue equals total cost, calculated as $\text{BEP} = \frac{\text{Fixed Cost}}{\text{Unit Price} - \text{Unit Variable Cost}}$.

Value Pricing

The practice of simultaneously increasing product and service benefits while maintaining or decreasing price.

Vertical Marketing System (VMS)

Professionally managed and centrally coordinated channels of distribution designed to achieve operating efficiencies and maximum marketing impact.

Showrooming

The consumer practice of examining products in physical retail stores and subsequently purchasing them online at a lower price.

Integrated Marketing Communications (IMC)

The concept of designing marketing communications programs that coordinate all promotional activities to provide a consistent message across all audiences.

Hierarchy of Effects

The sequence of stages a prospective buyer goes through from initial awareness of a product to final adoption: awareness, interest, evaluation, trial, and adoption.

Wheel of Retailing

A concept describing how new forms of retail outlets enter the market with low margins, prices, and status, and gradually add services and raise prices until newer retail forms enter.