IB Business M4 Case Study Flash Cards

Comprehensive vocabulary flashcards covering the core marketing syllabus, including the 7 Ps of the marketing mix, market research methods and ethics, market planning, STP analysis, product life cycles, and BCG matrix classifications.

Marketing

The management process involved in identifying, anticipating, and satisfying customer requirements profitably, designed to make consumers want to buy a product.

Market Orientation

An outward-looking marketing approach that focuses on discovering what products will sell through market research rather than what the business can make.

Product Orientation

An inward-looking marketing approach that focuses on selling products the business has the expertise to make, relying on high quality and innovation rather than market demand.

Market Share

An organization's portion of the total value of sales revenue in a specific industry, calculated as $\text{Market Share} = \left(\frac{\text{Firm Revenue}}{\text{Industry Revenue}}\right) \times 100$.

Market Growth

The percentage rate at which the size of a market increases or decreases over time, calculated as $\text{Market Growth} = \left(\frac{\text{Current Market Size} - \text{Original Market Size}}{\text{Original Market Size}}\right) \times 100$.

Cost-Plus (Mark-Up) Pricing

A pricing method that involves adding a predetermined percentage or profit margin contribution to the unit cost of producing a product.

Penetration Pricing

Setting a low initial price to enter a competitive market, raise awareness, and build a customer base before raising prices later.

Loss Leader Pricing

Setting a product's price below its production cost to attract customers into a store with the expectation that they will buy higher-margin companion goods.

Predatory Pricing

Temporarily reducing prices to very low levels (often below cost) to force struggling competitors out of the market.

Price War

A competitive situation that occurs when rival firms continuously undercut one another's prices using aggressive pricing strategies.

Premium Pricing

Setting a high price above competing products to reflect perceived or actual superior quality, uniqueness, luxury, and inelastic demand.

Above the Line (ATL) Promotion

Any form of paid-for promotional activity distributed through independent mass media sources such as television, radio, cinema, newspapers, magazines, and outdoor billboards.

Advertising Clutter

The excessive volume of advertisements that bombards consumers in media formats such as magazines, making individual ads harder to recall.

Below the Line (BTL) Promotion

Promotional activities that do not use independent mass media and instead target specific, clearly identified consumer segments directly.

Guerrilla Marketing

An unconventional, low-budget marketing strategy (also known as stealth marketing) that promotes goods in unexpected locations such as elevators or stairs.

Through the Line (TTL) Promotion

A promotional strategy that combines both above the line mass media advertising and below the line targeted promotions to reinforce brand messages across multiple channels.

People (Marketing Mix)

The employees who interact directly with customers and deliver a service, whose attitude, body language, and expertise directly shape perceived service quality.

Processes (Marketing Mix)

The procedures, mechanisms, and flow of activities by which a service is delivered to a customer, including queue times, payment methods, and after-sales support.

Physical Evidence (Marketing Mix)

The tangible, observable environment in which a service is delivered, including physical decor, cleanliness, layout, uniforms, and packaging.

Ad Hoc Market Research

Market research conducted on an 'as and when necessary' basis to investigate a specific, one-off marketing problem or issue.

Continuous Market Research

Market research that is carried out on an ongoing, regular basis to monitor consumer trends, competitor actions, and market dynamics over time.

Primary Market Research

First-hand collection of new data gathered directly by an organization for a specific research purpose (also called bespoke or field research).

Secondary Market Research

The collection of second-hand data and information that has already been gathered previously by internal records or external sources (also known as desk research).

Consumer Panels

Small groups of target consumers who are consulted repeatedly on a regular basis to provide ongoing feedback on products and marketing campaigns.

The 5Ds of Ethical Market Research

Guiding ethical principles market researchers must uphold to avoid unethical behavior: Damage, Deceitful, Deceptive, Disclosure, and Detachment.

Quota Sampling

A sampling method where a specific quota of individuals is selected from distinct market segments based on shared demographic characteristics such as age or gender.

Stratified Sampling

A sampling method where a heterogeneous population is divided into distinct subgroups (strata) and respondents are chosen randomly in proportion to each stratum's share of the population.

Snowballing

A market research sampling method that relies on initial respondents referring friends, family, or colleagues to expand the sample size through word-of-mouth.

Cluster Sampling

A sampling method used when geographical spread makes gathering feedback too costly or time-consuming, involving selecting respondents from specific geographic clusters.

Marketing Audit

A systematic review and analysis of an organization's current marketing climate, strategies, strengths, and weaknesses to assess what is working and what is not.

Consumer Profiles

The demographic, geographic, and psychographic characteristics (such as age, income, lifestyle, and values) that describe consumers within a particular market segment.

Position Map

A visual matrix plotting customer perceptions of competing brands or products along two dimensions, typically price and quality.

Cowboy Products

Products positioned on a perception map as having low quality while being sold at a high price.

Unique Selling Point (USP)

Any distinctive aspect, feature, or benefit of a business or product that differentiates it from competitors and gives it a competitive edge.

Niche Marketing

A marketing strategy focused on satisfying specific, well-defined market segments with specialized products and tailored marketing mixes.

Mass Marketing

A broad marketing strategy aimed at reaching the largest possible audience across multiple consumer segments with undifferentiated products.

Product Life Cycle (PLC)

The stages a product passes through over its commercial life: Research and Development, Launch, Growth, Maturity, and Decline.

Product Portfolio

The collection of all goods and services offered and managed by a single organization at any given time.

Boston Consulting Group (BCG) Matrix

A strategic marketing planning tool that categorizes a company's product portfolio based on market growth rate and relative market share into Stars, Cash Cows, Question Marks, and Dogs.

Cash Cows

Well-established products in the BCG Matrix that command a high market share in a low-growth market, generating substantial cash flow and profits.

Dogs

Products in the BCG Matrix that have a low market share in a mature or declining, low-growth market, generating little to no profit.

Extension Strategies

Marketing techniques such as price reductions, redesigning, repackaging, or entering new markets implemented to prolong a product's life cycle and delay decline.

Product Cannibalization

A loss in sales or market share of an existing product caused by the company launching a new or updated product in the same product line.

Zero-Level Distribution Channel

A direct distribution channel where the producer sells directly to the end consumer without using any intermediaries.

Wholesalers

Intermediary businesses that buy goods in bulk from manufacturers, break them down into smaller quantities, and resell them to retailers.