CMF flashcards

32 cards. Read the term and the definition here. The deck at the top of this page is optional.

Marketing mix (4Ps)

The four controllable decision areas of a marketing offer: Product, Price, Place (distribution), and Promotion. Services marketing adds People, Process, and Physical evidence to form the 7Ps.

STP model

Segmentation divides a market into groups, Targeting selects which groups to serve, and Positioning defines the intended place the offer occupies in the target's mind.

Contribution margin

Price minus variable cost per unit. Dividing fixed costs by contribution margin per unit gives the break-even quantity in units.

Ansoff growth matrix

A grid of product (existing or new) against market (existing or new). Cells are market penetration, market development, product development, and diversification, increasing in risk.

Porter generic strategies

Three routes to competitive advantage: overall cost leadership, differentiation, and focus on a narrow segment. Firms pursuing none are described as stuck in the middle.

Primary versus secondary data

Primary data is newly collected for the specific research problem; secondary data already exists from prior sources. Secondary is cheaper and faster but may not fit the question.

Probability sampling

Sampling methods where each population member has a known, nonzero chance of selection, such as simple random, systematic, stratified, and cluster. They permit statistical inference to the population.

Reliability versus validity

Reliability means a measure is consistent across repetitions; validity means it measures the intended construct. A measure can be reliable yet invalid, but a valid measure must be reliable.

Cognitive dissonance

Post-purchase discomfort arising when beliefs conflict with a chosen action. Marketers reduce it through reassurance, warranties, easy returns, and reinforcing messages after purchase.

Reference group influence

Groups a consumer compares against, exerting informational, utilitarian, or value-expressive influence. Opinion leaders within these groups accelerate adoption of new products.

Brand equity

The differential value a brand name adds to a product beyond its functional attributes. It supports price premiums, loyalty, and resilience to competitive pressure.

Line versus brand extension

A line extension adds a new variant within the existing category under the same name. A brand extension enters a different product category using the established brand name.

BCG growth-share matrix

Classifies business units by market growth rate and relative market share into stars, cash cows, question marks, and dogs, each implying different investment priorities.

Cannibalization

Sales lost from a firm's own existing products when it introduces a new product or channel, rather than sales won from competitors.

Unique selling proposition

A single, distinctive benefit that competitors do not offer and that is important enough to the target audience to drive preference and purchase.

Paid, owned, earned media

Paid media is purchased placement, owned media is controlled property such as a website, and earned media is unpaid coverage or sharing by others.

CPC and CPM

CPC is cost per click, calculated as spend divided by clicks. CPM is cost per thousand impressions, calculated as spend divided by impressions times 1,000.

Return on ad spend

ROAS equals revenue divided by advertising spend. An ROI of 300% corresponds to a ROAS of 4, since ROI subtracts spend from revenue first.

Search intent types

Queries are informational, navigational, commercial investigation, or transactional. Transactional queries signal purchase readiness and generally convert at the highest rates.

Last-click attribution

A model crediting all conversion value to the final touchpoint. It systematically over-credits closing channels such as branded search and under-credits upper-funnel awareness work.

AIDA model

A message sequence moving the audience through Attention, Interest, Desire, and Action. Content and calls to action are matched to the buyer's current stage.

Push versus pull strategy

Push directs promotion at channel intermediaries to secure distribution. Pull directs promotion at end consumers so demand draws the product through the channel.

Message framing

Presenting equivalent information as gains or losses. Loss frames tend to be more persuasive when risk and uncertainty are high; gain frames suit prevention-oriented decisions.

Integrated marketing communications

Coordinating all promotional channels so the audience receives a consistent message and brand promise, while execution details may be adapted per channel.

Hub-and-spoke content model

One substantial anchor asset, such as a research report, is broken into derivative pieces distributed across channels, each pointing back to the central asset.

Correlation versus causation

Correlation shows variables move together; causation shows one produces change in the other. Causal claims require experiments or rigorous identification strategies, not observational association.

Statistical significance

A result is statistically significant when the probability of observing it under the null hypothesis falls below the chosen alpha, conventionally 0.05.

Statistical power

The probability of detecting a true effect when one exists. Power increases with larger samples and larger true effects; low power yields false negatives.

KPI versus metric

A metric is any quantifiable measure; a KPI is a metric explicitly tied to a strategic objective and used to judge progress toward it.

Vanity metrics

Measures that look favorable but do not connect to business outcomes, such as raw page views or follower counts, as opposed to conversion, retention, and value metrics.

Informed consent

Research participants must be told the purpose, procedures, risks, and data use, and agree voluntarily. Concealment requires debriefing and must not cause harm.

Dark patterns

Interface designs that steer users against their interests, such as forced continuity, confirmshaming, and disguised ads. Several are actionable under consumer-protection rules.