BCS Written Marketing cheat sheet

Exchange is the core act of marketing: two or more parties give something of value to obtain a desired response, each free to accept or reject, and each able to communicate and deliver.

Five competing orientations: production (efficiency), product (quality), selling (aggressive push), marketing (customer needs first), and societal marketing (customer wants plus social welfare).

Marketing mix (4Ps): Product, Price, Place, Promotion; services extend it to 7Ps by adding People, Process, and Physical evidence.

Need = felt deprivation; want = need shaped by culture and personality; demand = want backed by buying power. A marketer can influence wants, not needs.

Value = perceived benefits minus perceived costs; satisfaction = perceived performance minus prior expectations. Delight occurs when performance exceeds expectations.

Customer lifetime value (CLV) = sum of expected future margins from a customer discounted to present value; acquisition cost must be recovered within the payback period.

Selling concept focuses on volume and transaction; marketing concept focuses on retention and relationship; relationship marketing builds long-term value through trust and commitment.

Marketing myopia: defining a business by the product sold rather than the underlying customer need (e.g., a railway firm is in transport, not trains).

Marketing management philosophies differ in the time horizon of profit: production and selling orientations target short-term volume, marketing orientation targets long-run profitability.

Macro-environment scan uses PESTLE: Political, Economic, Social, Technological, Legal, and Environmental factors; micro-environment covers customers, competitors, suppliers, intermediaries, and publics.

Porter's Five Forces: threat of new entrants, bargaining power of buyers, bargaining power of suppliers, threat of substitutes, and rivalry among existing competitors.

Buyer decision process: need recognition → information search → evaluation of alternatives → purchase decision → post-purchase behaviour (dissonance, satisfaction, disposal).

Information search sources: personal, commercial, public, and experiential. The evoked set is the small group of brands the buyer actually considers from the total awareness set.

Perception filters: selective attention, selective distortion, and selective retention determine which marketing stimuli reach and stay in the buyer's memory.

Maslow's hierarchy: physiological, safety, social, esteem, and self-actualisation needs; lower needs generally must be met before higher ones motivate.

Reference groups (membership, aspirational, dissociative) and opinion leaders shape attitudes; family roles include initiator, influencer, decider, buyer, and user.

Perceived risk types: functional, physical, financial, social, psychological, and time; high perceived risk increases information search and brand loyalty.

Post-purchase cognitive dissonance is reduced by reassuring communications, warranties, and follow-up contact.

Marketing information system (MIS) components: internal records, marketing intelligence, marketing research, and analytical tools for decision support.

Research process: define problem and objectives → develop research plan → collect data → analyse → present findings. Exploratory, descriptive, and causal designs answer different questions.

Primary data methods: survey, observation, experiment, and focus group. Secondary data are cheaper and faster but may be dated, misaligned, or unreliable.

Sampling: probability methods (simple random, stratified, cluster) allow inference to the population; non-probability methods (convenience, judgment, quota) do not.

Sample size rises with variance and confidence level and falls with acceptable error; margin of error is inversely proportional to the square root of sample size.

Questionnaire design pitfalls: leading questions, double-barrelled questions, ambiguous wording, and order bias; pretesting reduces these errors.

Demand forecasting: qualitative (sales-force composite, jury of executive opinion, Delphi, buyer intention surveys) and quantitative (moving average, exponential smoothing, regression, time-series decomposition).

Market potential vs sales potential vs sales forecast: total possible demand in a market, the share a firm could achieve, and the level actually planned.

Chain-ratio method multiplies successive percentages to estimate market demand; e.g., population × % in target segment × % able to buy × % willing to buy.

STP sequence: segment the market → evaluate and target segments → design a positioning and marketing mix for the chosen segment.

Segmentation bases: geographic, demographic, psychographic (lifestyle, VALS), and behavioural (usage rate, benefits sought, loyalty status, occasion).

Effective segment criteria: measurable, accessible, substantial, differentiable, actionable, and stable (MADAS).

Targeting strategies: undifferentiated (mass), differentiated (multiple segments), concentrated (niche), and micromarketing (local or individual).

Target attractiveness is judged by size, growth, structural attractiveness (Five Forces), and fit with company objectives and resources.

Positioning statement format: 'For [target segment], [brand] is the [frame of reference] that [point of difference] because [reason to believe].'

Positioning maps plot brands on two key attributes; perceptual maps reflect customer perceptions, not objective specifications.

Points of parity are table-stakes attributes; points of difference are unique, deliverable, and valued attributes that drive choice.

Repositioning is required when the current position is confused, too narrow, or loses relevance due to competitor moves or changing customer needs.

Product levels: core benefit, actual product (features, design, quality, brand), and augmented product (warranty, installation, after-sales service).

Product mix dimensions: width (number of lines), length (total items), depth (variants per item), and consistency (relatedness of lines).

Product life cycle stages: introduction, growth, maturity, and decline; profit typically peaks in late growth/early maturity while sales peak in maturity.

BCG matrix: stars (high growth, high share), cash cows (low growth, high share), question marks (high growth, low share), dogs (low growth, low share).

NPD process: idea generation → screening → concept development and testing → marketing strategy → business analysis → product development → test marketing → commercialisation.

Concept testing measures trial and repeat intentions; test marketing validates the full marketing mix in a limited market before launch.

Brand equity (Aaker) dimensions: brand awareness, perceived quality, brand associations, and brand loyalty, plus proprietary assets.

Brand architecture options: house of brands, branded house, endorsed brands, and hybrid; extension works best when the brand meaning transfers to the new category.

Cannibalisation occurs when a new product takes sales from existing products; a line extension may add variety but dilute brand focus.

Price floor equals variable or marginal cost; price ceiling equals perceived customer value; the final price sits between them and reflects competitive context.

Break-even quantity = fixed costs ÷ (unit price − unit variable cost); contribution margin per unit = price − variable cost.

Cost-plus pricing adds a standard markup to cost; target-return pricing sets price to achieve a required return on investment.

Value-based pricing sets price from perceived value, not from cost; it requires measuring customer willingness to pay.

Demand elasticity = % change in quantity demanded ÷ % change in price; |e| > 1 is elastic, |e| < 1 inelastic, |e| = 1 unitary.

Price skimming sets high initial price to capture early adopters; penetration pricing sets low price to build share fast and deter entry.

Psychological pricing: odd-even pricing, reference prices, anchoring, price-quality inference, and bundle pricing.

Product-mix pricing: product-line pricing, optional-feature pricing, captive-product pricing, two-part pricing, and by-product pricing.

Price discrimination (segmented pricing) charges different prices to different buyers for the same value; it requires market separation and low arbitrage.

Channel level count: zero-level (direct) = producer → consumer; one-level adds a retailer; two-level adds a wholesaler; three-level adds an agent or jobber.

Channel functions: information, promotion, negotiation, ordering, financing, risk taking, physical distribution, and payment; functions can shift but cannot be eliminated.

Intensive distribution suits convenience goods; selective distribution suits shopping goods; exclusive distribution suits specialty goods and supports premium positioning.

Channel conflict types: vertical (different levels), horizontal (same level), and multichannel; causes include goal divergence, unclear roles, and resource scarcity.

Vertical marketing systems: corporate, administered, and contractual (franchise, wholesaler-sponsored voluntary chain, retailer cooperative).

Logistics components: order processing, warehousing, inventory management, transportation, and materials handling; total-cost approach minimises system cost, not each component.

Economic order quantity balances ordering cost and holding cost; safety stock buffers demand variability and lead-time uncertainty.

Supply chain management spans upstream suppliers and downstream customers; bullwhip effect magnifies demand variability upstream.

Channel design decisions consider customer needs (lot size, waiting time, convenience, variety, service backup), segment profitability, and control.

IMC requires one consistent message across all touchpoints: advertising, sales promotion, public relations, personal selling, direct and digital marketing.

Promotion mix choice depends on product type: advertising dominates consumer convenience goods, while personal selling dominates industrial and high-value goods.

AIDA model: Attention → Interest → Desire → Action; the hierarchy-of-effects models assume communication moves buyers through cognitive, affective, and behavioural stages.

Push vs pull: push uses trade incentives to move stock through channels; pull uses consumer promotion and advertising to create downstream demand.

Advertising budget methods: affordable, percentage-of-sales, competitive parity, and objective-and-task (the most defensible).

Media planning metrics: reach (percentage of target exposed), frequency (average exposures per person), GRP = reach × frequency, and impressions.

Sales promotion tools: coupons, rebates, premiums, contests, trade allowances, and point-of-purchase displays; they boost short-term sales but can erode brand equity if overused.

Personal selling process: prospecting → preapproach → approach → presentation → handling objections → closing → follow-up.

Message strategy uses a unique selling proposition, brand image appeal, or emotional appeal; source credibility and celebrity fit affect persuasion.

Marketing plan sections: executive summary, situation analysis (SWOT), objectives, strategy, tactics (4Ps), budget, and control metrics.

SWOT pairs internal strengths and weaknesses with external opportunities and threats; TOWS converts them into SO, ST, WO, and WT strategic options.

SMART objectives are Specific, Measurable, Achievable, Relevant, and Time-bound; marketing objectives should link to sales, share, or profit targets.

Ansoff growth matrix: market penetration, market development, product development, and diversification (highest risk).

Porter's generic strategies: cost leadership, differentiation, and focus; firms stuck between strategies risk below-average performance.

Control levels: annual-plan control (sales analysis, market share analysis, expense-to-sales ratio), profitability control, efficiency control, and strategic control (marketing audit).

A marketing audit reviews environment, strategy, organisation, systems, and productivity; it is periodic, systematic, and independent.

Sales variance analysis decomposes the gap between planned and actual sales into price and volume effects.

Marketing ROI = (incremental profit attributable to marketing − marketing cost) ÷ marketing cost, expressed as a ratio or percentage.