Introduction to Marketing Principles and Strategy

Comprehensive practice flashcards covering fundamental marketing concepts, the marketing environment, research methods, consumer behavior, product strategy, and services marketing.

How does the American Marketing Association (AMA) define marketing?

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

What is the difference between an exchange and a transaction in marketing?

An exchange involves obtaining a desired product from someone by offering something in return, whereas a transaction involves at least two things of value, agreed-upon conditions, a time of agreement, and a place of agreement.

What are the four organizational eras reflecting the evolution of marketing attitudes?

1. Production Era (Colonial period–1920s)
2. Sales Era (1920s–1960s)
3. Marketing Concept Era (1960s–1970s)
4. Societal Marketing Era (1970s to Present)

How do micro-environments and macro-environments differ in an organization's marketing view?

Micro-environments consist of controllable factors (Product, Price, Place, Promotion), while macro-environments consist of uncontrollable factors (Laws and Policies, Demographics, Social Values, Technology, Economy).

What four categories describe the nature of competition in an external environmental scan?

Pure competition, Monopolistic competition, Oligopoly, and Monopoly.

In a SWOT analysis, which factors are internal and which are external?

Internal factors are Strengths and Weaknesses; external factors are Opportunities and Threats.

What are the four components of the traditional Marketing Mix (the 4 Ps)?

1. Product (features, customer service, quality, warranties, packaging, branding)
2. Price (perceived value given in money in return for a product)
3. Place (distribution channels where a product is available)
4. Promotion (communications to inform potential customers about a product)

What are the three key components of a company's mission statement?

1. Purpose: Describes why the organization exists.
2. Goals: States the primary objectives the organization aims to achieve.
3. Focus: Identifies the target audience or market and the scope of operations.

What are the four key components of a company's vision statement?

1. Future Orientation: Describes where the organization wants to be in the long term.
2. Inspiration: Motivates and inspires stakeholders.
3. Ambition: Reflects high-level goals and aspirations.
4. Impact: Indicates the positive change or impact the organization aims to achieve.

What are company values and their key components?

Company values are the core principles and beliefs guiding an organization's behavior, decision-making, and interactions. Their key components are Ethical Standards, Cultural Priorities, Guiding Principles, and Consistency.

What types of marketing data are collected across the Market, Consumer, and Firm categories?

• Market: Competition, economic shifts, technological trends, available opportunities, and potential threats. • Consumer: Consumer buying habits, demand estimation, and price sensitivity. • Firm: Strengths and weaknesses, current perceptions and positions, channels of distribution, and feedback on marketing efforts.

What is exploratory research and when is it typically used?

Exploratory research is unstructured research conducted to gain a deeper understanding of a problem, clarify concepts, or generate hypotheses when little is known about a subject. Common methods include interviews, focus groups, and literature reviews.

What is causal research?

Causal research is research that seeks to establish cause-and-effect relationships between variables using controlled experiments and statistical analysis to determine how one variable influences another.

What is descriptive research?

Descriptive research is a method focused on systematically describing characteristics, behaviors, or phenomena (answering 'what,' 'who,' 'where,' and 'when' without explaining causes) using surveys, observations, and case studies.

What is the difference between primary data and secondary data?

Secondary data is information collected by another person, system, or organization for a different purpose than the current issue being studied, whereas primary data is collected directly from the researcher's own efforts to answer specific questions.

How do qualitative and quantitative primary research methods differ?

Qualitative research is open-ended research meant to better understand consumer reasoning (focus groups, interviews, observational studies), while quantitative research is structured research meant to answer questions in numerical or statistical form (surveys, analytics, experiments).

What are the five steps of the marketing research process in order?

1. Identify the problem
2. Develop the research plan
3. Conduct research
4. Analyze and report findings
5. Take action

What variables are involved in a marketing strategy according to the AMA?

Marketing mix, target market, positioning, and marketing-related expenses.

What are the four common approaches to market segmentation?

1. Geographic: Where consumers are located.
2. Demographic: Whom consumers are (age, gender, income, ethnicity, education).
3. Psychographic: How consumers act and think.
4. Behavioral: What consumers do.

What four characteristics define an ideal target market?

1. Large – to meet revenue objectives
2. Reachable – by the company's distribution and communications
3. Available – not restricted to competing products/services
4. Profitable – to meet profit objectives

What is a Unique Selling Proposition (USP)?

The USP is the one attribute a product or service does that is different from or better than the competition, serving as the starting point for differentiation.

What marketing tool is illustrated in this diagram, and what is its purpose?

A perceptual map (positioning map), used to visually identify and establish product positioning by showing where offerings sit relative to competitors along dimensions such as price and quality.

What are the five levels of needs in Maslow's hierarchy, ordered from bottom to top?

1. Physiological
2. Safety
3. Love/belonging
4. Esteem
5. Self-actualization

What are the five sequential stages of consumer purchasing decisions?

1. Need Recognition & Problem Awareness
2. Information Search
3. Evaluation of Alternatives
4. Purchase
5. Post-Purchase Evaluation

What distinguishes consumer products from business products?

Consumer products are offered to individual consumers or end users, whereas business products are offered to businesses for their consumption or to directly or indirectly contribute to business sales.

What is the difference between a product mix and a product line?

A product mix is the combination of all different offerings a firm provides (characterized by breadth and depth), whereas a product line is a group of similar products within that mix sold to meet similar needs.

What are the four stages of the Product Life Cycle (PLC)?

1. Introduction: Products launch, marketing costs are high, sales growth is slow, and focus is on awareness.
2. Growth: Rapid sales increase, competitors enter, and distribution expands.
3. Maturity: Sales plateau due to saturation; focus shifts to retaining market share.
4. Decline: Sales drop due to changing preferences or technology; products face discontinuation or repositioning.

What three main functions does packaging provide?

1. Identification: Logos, slogans, and colors connect consumers with brand communications.
2. Protection: Protects goods from the environment during shipping, storage, and display.
3. Messaging: Communicates ingredients, instructions for use, warnings, and disposal methods.

What are the '4 Is' of services marketing?

1. Intangibility: Benefits cannot be seen, heard, smelled, tasted, or touched.
2. Inseparability: The consumer cannot distinguish the service provider from the service itself.
3. Inconsistency (Variable): Quality depends on the provider at the time of delivery.
4. Inventory (Perishable): Services cannot be stored or inventoried for future use.

What are the 7 Ps of the expanded marketing mix for services?

1. Product
2. Price
3. Promotion
4. Place
5. People
6. Processes
7. Physical Evidence