Principle of Marketing Terminology

Flashcards covering essential marketing terminology and concepts for review and exam preparation.

Want

A desire for a product or service that is not essential for survival but enhances quality of life.

Need

A basic requirement that is essential for survival or well-being.

Demand

The willingness and ability of consumers to purchase a good or service at a given price.

Exchange

The process of trading goods, services, or money between parties.

Customer Value

The perceived benefits a customer receives in exchange for the cost of a product or service.

Marketplace

A physical or digital space where buyers and sellers interact to exchange goods and services.

Digital Markets

Online platforms where buyers and sellers conduct transactions digitally.

Supply Chain

The network of entities and activities involved in producing, distributing, and delivering a product to consumers.

Data Analytics

The process of examining, organizing, and interpreting data to extract useful insights for decision-making.

E-commerce

Buying and selling goods or services over the internet.

Brand Perception

How consumers view and interpret a brand based on their experiences and opinions.

Consumer Perception

The way consumers interpret and respond to a product, brand, or service.

Social Media Influence

The impact of social media platforms on consumer behavior, trends, and brand engagement.

Market Research

The process of gathering, analyzing, and interpreting information about consumers, competitors, and market trends.

Marketing Mix

The combination of factors (product, price, place, promotion) that influence consumer decision-making.

Strategic Analysis

The evaluation of an organization’s environment, capabilities, and competitive position to formulate effective strategies.

Market Implementation

Executing strategies and plans to introduce and promote products or services in a market.

Communication

The exchange of information, ideas, or messages between individuals or groups.

Delivery of Value

Providing products or services that meet or exceed customer expectations in terms of quality, price, and satisfaction.

Marketing Environment

All the external and internal factors that influence a company’s marketing activities.

Consumer Markets

Markets made up of individuals and households that purchase goods and services for personal consumption.

Microenvironment

Actors close to the company that affect its ability to serve customers.

Macroenvironment

The broader societal forces that affect the microenvironment.

Trends

Long-term patterns or movements in the environment that influence consumer behavior.

Demographic Factors

Characteristics of the population that influence market segmentation and consumer needs.

Economic Factors

Economic conditions that affect consumer purchasing power and spending patterns.

Technological Factors

Innovations that can improve products or influence marketing and production.

Political-Legal Factors

Laws and regulations that influence or limit organizations.

Socio-Cultural Factors

Values and lifestyles of a society that shape consumer behavior.

Environmental Scanning

The process of collecting information about external forces and trends.

Marketing Research

The systematic process of collecting, analyzing, and interpreting data about markets.

Market Segmentation

The process of dividing a broad market into smaller categories based on common characteristics.

Demographic Segmentation

Segmenting the market based on demographic variables.

Geographic Segmentation

Dividing the market into different geographical units.

Behavioral Segmentation

Segmenting the market based on consumer behavior.

Psychographic Segmentation

Dividing the market based on social class, lifestyles, and interests.

Mass Marketing

Targeting the whole market with one offer.

Segmented Marketing

Targeting several market segments with separate offerings.

Niche Marketing

Focusing on a large share of a small market segment.

Local Marketing

Tailoring products and promotions to local customer groups.

Individual Marketing

Tailoring products to individual customer needs.

Target Markets

The specific group of potential customers the business aims to reach.

Positioning

Designing a company’s offering to occupy a distinct place in the minds of the target market.

Differentiation

Making a product stand out through unique features or benefits.

Unique Selling Proposition (USP)

A clear statement of the unique benefit that sets a product apart.

Consumer Behavior

The study of how individuals select, buy, and dispose of goods and services.

Culture

Basic values and behaviors learned by members of society.

Reference Groups

Groups of people that influence individual's attitudes and behaviors.

Selective Attention

The tendency to focus on stimuli relevant to the consumer.

Selective Distortion

Interpreting information in a way that fits one’s existing beliefs.

Selective Retention

Remembering information that supports personal beliefs.

Complex Buying Behavior

High involvement in purchasing with significant brand differences.

Dissonance-Reducing Buying Behavior

High involvement, little brand difference, potential post-purchase remorse.

Initiator

The person who suggests the purchase of a product.

User

The individual who actually uses the product.

Buyer

The person who makes the purchase transaction.

Decider

The individual with the authority to make the buying decision.

Gatekeepers

Individuals controlling the flow of information in the buying process.

Zero Moment of Truth (ZMOT)

The moment a consumer researches a product online before purchasing.

Moment of Truth (MOT)

The point in the buying process when a customer interacts with the product.

Marketing Mix

Factors used by a company to influence consumer purchasing decisions.

Product

Anything offered to satisfy a desire or need.

Price

The amount of money charged for a product.

Place

How a product gets from manufacturer to consumer.

Promotion

Activities communicating a product’s features and benefits.

People

Human actors influencing the service delivery.

Process

Procedures that deliver the product or service to customers.

Physical Evidence

Tangible aspects that help customers evaluate a service.

Retail

Sale of goods or services directly to consumers.

Advertising

Paid non-personal communication about a product.

Joint Ventures

A business arrangement where parties pool resources for a specific project.

Product Life Cycle (PLC)

Stages a product goes through from introduction to decline.

Rapid Skimming Strategy

Launching a product at a high price to gain quick profits.

Slow Skimming Strategy

Launching at a high price with low promotional effort.

Rapid Penetration Pricing Strategy

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

Slow Penetration Pricing Strategy

Launching at a low price with low promotional activity.

Intangibility

Services cannot be seen or touched before purchase.

Inseparability

Services are produced and consumed simultaneously.

Perishability

Services cannot be stored once the service time passes.

Variability (Heterogeneity)

Service quality may vary depending on circumstances.

Kiosks

Small stand-alone booths for selling goods or services.

Franchising

A model where a franchisor allows a franchisee to operate a business.

Ministores

Compact versions of retail outlets.

Skimming Pricing

Setting a high price initially to maximize revenue from early adopters.

Cost-Plus Pricing

Setting price by adding a markup to production cost.

Psychological Pricing

Pricing tactics that affect customers emotionally.

Penetration Pricing

Introducing a product at a low price to attract customers.

Target Pricing

Setting a price based on customer willingness to pay.

Price Leadership

One leading firm sets the price and others follow.

Dynamic Pricing

Adjusting prices in real-time based on market conditions.

Limit Pricing

Setting prices low to deter new competitors.

Competitive Pricing

Setting prices based on competitors' strategies.

Flower of Service

A model identifying the core service and supplementary services.

Sales Promotion

Short-term incentives to encourage purchase.

Mobile Marketing

Promotional activities designed for mobile devices.

Social Media Marketing

Using social media platforms to connect with audiences.

Direct Selling

Selling products directly to consumers outside of retail.

Personal Selling

Face-to-face interaction aimed at making a sale.

Public Relations (PR)

Managing a company’s image through media and community involvement.

Advertising

Paid promotion through various media channels.