Marketing Concepts Vocabulary Flashcards

A comprehensive collection of vocabulary flashcards covering key marketing concepts, strategies, environment, consumer behavior, and ethics.

Demand

Customer wants backed by buying power.

Production Philosophy

Focusing on production, especially when demand exceeds supply or economies of scale are important.

Product Philosophy

Focusing on producing the highest-quality products, even though the highest quality may not necessarily be what customers want.

Sales Philosophy

Emphasizing push strategies and hard selling.

Marketing Philosophy

Achieving long-term company goals by best serving customers' needs and wants.

Societal Philosophy

Meeting customer needs while also considering what is good for society.

Customer Value

The customer's perception of the benefits received compared with what they give up to obtain a product or service.

Customer Satisfaction

The extent to which a product or service meets or exceeds customer expectations.

Relationship Marketing

Developing and maintaining long-term relationships with customers.

Portfolio Analysis

Evaluating a company's strategic business units (SBUs) to determine where resources should be invested.

Star (BCG Matrix)

An SBU with high market growth and high market share. Strategy: Usually grow/build.

Cash Cow (BCG Matrix)

An SBU with low market growth and high market share. Strategy: Usually hold or harvest.

Problem Child (BCG Matrix)

An SBU with high market growth and low market share. Strategy: The company must decide whether to invest/build or divest.

Dog (BCG Matrix)

An SBU with low market growth and low market share. Strategy: Often harvest or divest.

Grow/Build Strategy

Invest resources to increase market share or strengthen the business.

Hold Strategy

Maintain the SBU's current position and market share.

Harvest Strategy

Reduce investment and attempt to maximize short-term cash flow/profits from the business.

Divest Strategy

Sell or eliminate the business/SBU.

Market Share

A company's percentage of total sales in a market, calculated as $\text{Company sales} \div \text{Total market sales} \times 100$.

Relative Market Share

A company's market share compared with the market share of its largest competitor, calculated as $\text{Your company's market share} \div \text{Largest competitor's market share}$.

Sustainable Competitive Advantage

An advantage that competitors cannot easily duplicate or copy.

Product Differentiation

Making a product different or distinct from competing products, such as through features, design, quality, or performance.

Marketing Ethics

Principles and standards that guide what is right or wrong in marketing decisions and behavior.

Social Responsibility

A company's responsibility to consider the effects of its actions on society and various stakeholders.

Marketing Environment

The external forces and factors that affect a company's ability to serve customers and make marketing decisions.

Demographic Forces

Changes in the size, structure, and characteristics of populations, such as age, income, gender, ethnicity, and population growth.

Social Forces

Changes in culture, values, lifestyles, attitudes, and social trends that influence consumers.

Economic Forces

Factors affecting consumers' and businesses' ability and willingness to spend, such as income, inflation, unemployment, and economic conditions.

Technological Forces

Changes in technology and innovation that create new products, processes, and ways of reaching customers.

Political/Regulatory Forces

Laws, regulations, government policies, and political factors that affect businesses and marketing activities.

Competitive Forces

Actions and strategies of current and potential competitors that affect a company's ability to compete.

Disposable Income

The amount of money consumers have left after paying taxes.

Discretionary Income

The money left after paying for necessities and taxes, which can be used for things such as entertainment, travel, or luxury products.

Consumer Behavior

The processes consumers use to select, purchase, use, and dispose of products, services, ideas, or experiences.

Consumer Involvement

The degree of personal importance or interest a consumer has in a purchase.

High-Involvement Purchasing

A purchase that is personally important, expensive, risky, or requires significant thought, such as buying a car.

Low-Involvement Purchasing

A purchase requiring little thought or effort, such as buying a familiar snack.

Need Recognition

The first step in the consumer decision-making process, where the consumer realizes there is a difference between their current state and desired state.

Information Search

The second step in the consumer decision process, where the consumer looks for information about possible solutions, products, or brands.

Evaluation of Alternatives

The third step in the consumer decision process, where consumers compare different products, brands, or options based on important attributes.

Purchase Decision

The fourth step in the consumer decision process, where the consumer selects and purchases a product or service.

Postpurchase Behavior/Evaluation

The final step in the consumer decision process, where consumers evaluate whether the product met their expectations.

Motive

An internal need or reason that drives a person to take action.

Perception

The process by which people select, organize, and interpret information.

Learning (Consumer Behavior)

A change in behavior or knowledge resulting from experience or information.

Lifestyle

A person's pattern of living, including activities, interests, and opinions.

Reference Group

A group that influences a person's attitudes, values, or behavior.

Subculture

A group within a larger culture that shares distinct values, beliefs, or behaviors.

Belief

A consumer's specific idea or perception about a product, brand, or object (what a person thinks is true).

Attitude

A consumer's overall evaluation or feeling toward an object, person, product, or brand.

Physiological Needs

The lowest level of Maslow's Hierarchy, consisting of basic survival needs such as food, water, and shelter.

Safety Needs

The second level of Maslow's Hierarchy, encompassing security, protection, stability, and safety.

Love and Belongingness Needs

The third level of Maslow's Hierarchy, encompassing relationships, friendship, family, and belonging.

Esteem Needs

The fourth level of Maslow's Hierarchy, encompassing status, recognition, achievement, and self-respect.

Self-Actualization Needs

The highest level of Maslow's Hierarchy, centered on achieving one's full potential and personal growth.

Evoked Set

The brands that a consumer actually considers when making a purchase.