MARK 3000 Principles of Marketing - Final Exam Review

A set of flashcards aimed at reviewing key concepts and terms from the MARK 3000 Principles of Marketing lecture notes.

4Ps of the Marketing Mix

The four elements—Product, Price, Place, and Promotion—that marketers use to market their offerings.

Product

Creating value by developing goods, services, and ideas to satisfy customer needs.

Price

The amount a buyer gives up, including money, in exchange for a product or service.

Place

The marketing processes that ensure the product reaches the right customer at the right time.

Promotion

Communication that informs, persuades, and reminds potential buyers about a product or service.

Sustainable Competitive Advantage (SCA)

An advantage over the competition that is not easily copied and can be maintained over a long period.

SWOT Analysis

A framework that analyzes the Strengths, Weaknesses, Opportunities, and Threats of a business.

Market Penetration

A growth strategy focused on increasing sales of existing products in existing markets.

Product Development

A growth strategy that entails developing new products for existing markets.

Market Development

A growth strategy that involves entering new markets with existing products.

Demographic Segmentation

Grouping consumers by easily measured characteristics such as age, gender, income, and education.

Geographic Segmentation

Organizing customers into groups based on their location.

Loyalty Segmentation

Grouping repeat customers, as they tend to be more profitable over time.

Primary Data

Data collected specifically to address research needs through methods like surveys and interviews.

Secondary Data

Data collected prior to the research project, sourced both internally and externally.

Quantitative Research

Research involving structured responses that can be statistically tested.

Qualitative Research

Research that uses open-ended questions to explore phenomena of interest.

Diffusion of Innovation

The process by which the use of an innovation spreads across a market.

Product Life Cycle

Describes the stages products go through from introduction to decline.

Service Attributes

Factors that differentiate services from goods, including intangibility, inseparability, heterogeneity, and perishability.

Demand Curve

A graph showing the relationship between the price of a product and the quantity demanded.

Complementary Products

Products that add value to each other when consumed together.

Substitute Products

Products that serve the same purpose and can replace one another.

Franchising

A contractual agreement where a franchisor allows a franchisee to use its brand and business model.

GDP (Gross Domestic Product)

The market value of all goods and services produced in a country in a year.

GNI (Gross National Income)

GDP plus the net income earned from investments abroad.

Strength of SWOT analysis

Characteristics of the business that give it a competitive advantage

Weakness of SWOT analysis

Characteristics that hinder a business's performance or competitive advantage.

Opportunities of SWOT analysis

External factors that can benefit a business or help it grow.

Threats of SWOT analysis

External factors that could harm a business or hinder its growth.

Diversification

A marketing strategy that involves entering into new markets or developing new products to reduce risks and enhance growth.

immediate environment

The factors that directly affect a company's operations including competitors, customers, suppliers, and the internal resources of the company.

Company Capabilities

The unique strengths and resources that a company possesses, which can be leveraged to create competitive advantages and deliver value to customers.

Factors of the macroenvironmental

elements that affect the broader environment in which a business operates, including economic, social, technological, and political factors.

Steps in the decision-making process

steps that include identifying the problem, gathering information, evaluating alternatives, making the choice, and reviewing the decision. This framework helps businesses navigate challenges effectively.

Different types of perceived risk

include financial, functional, physical, social, and psychological risks that consumers may experience when making purchasing decisions.

Compensatory decision rules

are decision-making strategies in which consumers evaluate all available alternatives and select the option with the highest overall benefit, taking into account both positive and negative attributes.

Non-Compensatory decision rules

are decision-making strategies where consumers set specific thresholds for various attributes and select alternatives that meet these criteria, often disregarding options that do not.

The Five types of actual and perceived risks

associated with consumer purchasing decisions are financial, functional, physical, social, and psychological. These risks can significantly influence consumer behavior and decision-making.

Market segmentation

is the process of dividing a broad consumer or business market into sub-groups of consumers based on shared characteristics such as demographics, behaviors, or needs.

Evaluating Segmemt attractiveness

marketers must determine weather the segment is worth pursuing, by evauluatng if it is,identifiable, substantial, reachable, responsive, profitable

Product complexity

Actual product vs associated services

What are the product mix decisions

related to the range of products offered by a company, including brand extensions, Line extensions, product breadth, and Product Depth.

What are branding strategies

creating a unique image and identity for a product or company in the consumer's mind. This includes brand positioning, brand equity, brand loyalty, and brand extensions.

Breadth product

refers to the number of different product lines a company offers, indicating the variety of products available to consumers.

Depth product

refers to the number of variations of a particular product within a product line, showing the range of choices available for that specific product category.

Service Attributes

features and characteristics of a service that help consumers evaluate its quality and differentiate it from other services. These can include intangibility, perishability, variability, and inseparability.

Service recovery

includes distributive fairness and procedural fairness in addressing service failures and ensuring customer satisfaction.

Distributive fairness

refers to the perceived fairness of the outcomes or benefits received by customers after a service failure. It emphasizes equitable compensation or resolution provided to the customer.

Procedural fairness

refers to the perceived fairness of the processes and procedures used to resolve service failures. It focuses on transparency, consistency, and opportunity for customers to voice their concerns during the resolution process.

Demand Curve

is a graphical representation that shows the relationship between the price of a good or service and the quantity demanded by consumers at various prices.

Price elasticity of demand

measures how much the quantity demanded of a good or service changes in response to a change in its price. It indicates the sensitivity of consumers to price fluctuations.

Variable vs. fixed costs

are categories of expenses that businesses incur. Variable costs fluctuate with production levels, while fixed costs remain constant regardless of output.

The communication process

is the method by which information is conveyed from a sender to a receiver, including the sender's message, encoding, the medium of communication, decoding by the receiver, and feedback.

The AIDA Model

is a marketing framework that outlines the steps a consumer goes through when purchasing a product, which includes Attention, Interest, Desire, and Action.

Brand awareness

Aided recall and top of mind awareness

Aided recall

refers to the ability of consumers to recognize a brand when prompted or helped, indicating familiarity with the brand.

Top-of-mind awareness

indicates a higher level of awareness in which a consumer mentions a specfic brand of product or service before all others

Product-focused ads

inform, persuade, or remind consumers about a product or service

Institutional ads

promote a company, corporation, business, or institution to improve or enhance public perception

PSAs

are designed to raise awareness of public welfare issues

what is public relations

Managing the spread of information between an organization and its public.