Marketing Principles and Market Fundamentals

Comprehensive vocabulary flashcards covering the fundamentals of marketing, economic principles of supply and demand, competitive structures, product lifecycles, and promotional sales strategies.

GAP Factory Clearance Sale Promotion

An online retail promotion featuring prices discounted up to $90\%$ off with items starting at just $\$2.\text{xx}$, offering an extra $50\%$ off clearance, plus an additional $15\%$ off and free shipping.

Code GFEMAIL

A promotional discount code used to score an additional $15\%$ off and free shipping during the GAP Factory clearance sale.

Marketing

The action or business of promoting and selling products or services, which includes market research and advertising.

Marketing Concept

The philosophy that the reason for a company's existence is to meet the wants and needs of customers while meeting the objectives of the company.

Need

A basic unit of survival required by humans, such as food, air, water, and shelter.

Want

Something that people would like to have but do not require for survival, such as video games, fancy cars, and ice cream.

Good

A physical product sold to the public, such as hockey sticks.

Service

An intangible activity where a customer pays someone to do or provide something, such as the work of a waiter at a restaurant.

Customer

The individual who purchases or pays for a product or service.

Consumer

The individual who ultimately uses or consumes the product.

The 4 P's of Marketing

The foundational marketing mix elements: Product (what is sold), Price (finding the right price), Place (where the product is sold), and Promotion (ways used to make the product known to consumers).

The 2 C's of Marketing

The core parties involved in purchasing behavior: the Customer (who makes the purchase) and the Consumer (who uses the product).

Target Market

A specific group of customers whose wants and needs a company focuses on satisfying.

Demographics

The study and categorization of consumers based on obvious, measurable population characteristics such as age.

Psychographics

A system for measuring and categorizing consumers based on their beliefs, opinions, and personal interests.

Geographics

The segmentation of consumers based on the physical location or region where they live.

Heavy Users

Consumers who use a specific product every day or almost every day.

Medium Users

Consumers who use a product only occasionally or sometimes.

Non-Users

Individuals who never buy or use a given product.

Demand

The quantity of a good or service that consumers are willing and able to buy at a certain price.

Supply

The quantity of a good or service that a business is willing and able to provide at a certain price.

Law of Demand

The economic principle stating that when prices increase, consumers buy less and quantity demanded goes down; when prices decrease, consumers buy more and quantity demanded goes up.

Law of Supply

The economic principle stating that when prices increase, businesses sell more and quantity supplied goes up; when prices decrease, businesses sell less and quantity supplied goes down.

Factors Affecting Demand

External influences that alter consumer purchasing levels, including changes in consumer income, consumer tastes, future expectations, and population.

Factors Affecting Supply

Variables that alter production output, including the number of producers, changes in price, and changes in technology.

Market Equilibrium

The market state where the quantity of supply equals the quantity of demand.

Five Strategies of the Buying Process

The sequential stages a consumer goes through when purchasing: awareness (hears about product), search (gathers info), evaluation (evaluates info), trial (tries product), and purchase (buys product).

Four Motivational Appeals

Techniques used to persuade consumers: biological (appealing to basic physical needs), rational (appealing to reason and thinking), emotional (appealing to love, joy, or fear), and social (appealing to peer pressure).

Direct Competition

Competition between businesses that offer products that are similar and in the same product category.

Indirect Competition

Competition between businesses selling products that satisfy similar needs but are not in the same product category.

Competitive Advantage

A strategy or capability that allows a business to outperform its rivals and attract more customers.

Sustainable Competitive Advantage

A competitive edge that lasts a long time and is difficult for competing companies to copy.

Non-Sustainable Competitive Advantage

A temporary competitive advantage that lasts only a short amount of time and is easy for competitors to duplicate.

Market Share

The percentage or proportion of total sales a company captures over a specified period of time.

Perfect Competition

A market structure containing a large number of small companies where no single firm has control over the market.

Monopolistic Competition

A market structure with a large number of companies where each seller has an opportunity for some degree of market control.

Oligopoly

A market structure dominated by a small number of large companies, each possessing a substantial amount of market control.

Monopoly

A market structure in which a single company possesses complete control over the entire market.

Product Life Cycle

The progression of stages a product goes through over time: introduction, growth, maturity, decline, and decision point.

Decision Point

The critical stage in the product life cycle where marketers must decide what the future of the product will look like, such as whether to redesign, repackage, or reprice.

Fad

A product that surges in popularity for only a very short amount of time, such as fidget spinners.

Niche

A specialized product or brand that dominates a small, specific segment of the overall market, such as beeswax food wraps.

Seasonal Product

A product whose consumer demand and availability fluctuate according to specific seasons or times of the year.