Marketing Principles, Functions, and Promotion Mix

Comprehensive vocabulary flashcards covering the seven functions of marketing, the promotional mix, market research methods, segmentation, and distribution channels.

Promotion

Any communication used to inform, persuade, remind people about a product, or improve and manage public image in order to influence buying decisions.

Products promotion

A type of promotion that convinces the market to buy a specific product.

Institutional promotion

Promotion designed to create a favorable image for a company.

Personal selling

The largest and most expensive form of promotion where a representative makes the sale after a customer is attracted by ads, sales promotion, or PR (e.g., real estate, technology, expensive brands).

Advertising

Communicating with users of a product or service through a message paid for by the sender to influence buyers (e.g., magazines/newspapers print ads, TV, websites, social media).

Direct marketing

Promotion that addresses individuals directly rather than through a third party like TV (e.g., direct mail, telemarketing, text messaging, email).

Public relations (PR)

Strategic efforts and stratagems designed to enhance a company's reputation and image.

Publicity

The unpaid media result of PR that makes headlines, news, chat rooms, and blogs based on what the public thinks.

Sales promotion

Incentives that encourage customers to buy, including coupons ($1\,\%$ or 1\,\ discounts), deals (buy one get one free), contests, sweepstakes, loyalty programs, and sponsorships.

Market research

The study of information about consumers to determine what they want and need, what to produce, who will buy, and how much they will purchase.

Surveys and questionnaires

Market research tools characterized as easy and inexpensive to implement.

Focus groups

A market research tool consisting of small groups of $< 10$ people that is time-consuming and expensive.

In-depth interviews

One-on-one market research interviews that are time-consuming and expensive.

Demographics

Objective facts about the target population for a product or service, including age, gender, location, income, and education.

Psychographics

Information about a target population's attitudes, aspirations, and psychological criteria, including lifestyle, hobbies, interests, and values.

Channel of distribution

A particular pathway to get a product to consumers, classified as either direct or indirect.

Direct distribution

A distribution route where goods or services are sold straight from the manufacturer to the consumer without intermediaries.

Indirect distribution

A distribution route that involves one or more intermediaries ('one more stop') between the producer and the consumer.

Intermediaries

Go-betweens that move a product through the process connecting manufacturing to the final user.

Distributors

Intermediaries that represent a manufacturer within a specific geographic area.

Wholesalers

Intermediaries that receive large shipments of products from many different producers and allocate shipments to smaller resellers.

Retailer

The final stop in a channel of distribution that buys products and sells goods directly to the final customer.

Market

The process of creating, promoting, and presenting a product or service to meet the needs of consumers.

Marketing

A group of consumers who share common wants or needs and who have the ability to purchase.

Target marketing

Directing resources toward specific potential customer groups, such as teenagers or the elderly.

Relationship marketing

Strategies and processes focused on building long-term relationships with customers by providing related goods and services that meet consumer wants.

Product/Service management

A marketing function dedicated to researching competitors and evaluating customer feedback to guide product decisions.

Marketing information management

A marketing function centered on gathering and evaluating data related to sales and business plans.

Break-even point

The amount of money a company must make on a product to cover its production costs, reached when $\text{total revenue} = \text{total cost}$.

Consumer

Someone who uses the product or wants the product but has not yet bought it from your specific business.

Customer

Someone who buys the product from a specific company.

The 4 P's

The essential marketing mix variables consisting of Product (determining demand), Place (physical brick and mortar or virtual/online channels), Price (setting competitive, profitable pricing), and Promotion (generating awareness).