Management Trainee (Marketing) flashcards
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32 cards. Read the term and the definition here. The deck at the top of this page is optional.
- Marketing concept
- A business philosophy that achieving organisational goals depends on identifying customer needs and satisfying them more effectively and efficiently than competitors do.
- Selective distortion
- The tendency of consumers to interpret new information in a way that fits their existing beliefs and attitudes, rather than objectively.
- Derived demand
- Demand for business goods that results from demand for consumer goods; a fall in consumer demand reduces demand for inputs.
- Customer lifetime value
- The total profit a customer is expected to generate over the relationship, often calculated as average purchase value times frequency times lifespan.
- Probability sampling
- A sampling method where every population member has a known, non-zero chance of selection, allowing statistical inference to the population.
- Margin of error
- The range within which the true population value is expected to lie, calculated as z times the standard error of the estimate.
- A/B test
- An experiment comparing two versions of a marketing element, randomly assigning users, to determine which produces a statistically better outcome.
- Correlation vs causation
- Correlation measures association between variables; causation requires evidence that one variable produces change in another, ruling out confounders.
- Brand equity
- The differential effect that brand knowledge has on consumer response to marketing, built through awareness and strong, favourable associations.
- Product life cycle
- The stages a product passes through: introduction, growth, maturity, and decline, each requiring different marketing mix decisions.
- Ansoff matrix
- A planning tool with four growth strategies: market penetration, product development, market development, and diversification, ordered by increasing risk.
- Cannibalisation
- A situation where sales of a new product reduce sales of an existing product in the same company portfolio, reducing net incremental volume.
- Cost per acquisition
- Total campaign spend divided by the number of conversions or acquisitions, measuring the average cost to acquire one customer.
- Return on ad spend
- Revenue generated by advertising divided by the advertising spend; a value above 1 indicates revenue exceeds spend.
- Click-through rate
- The number of clicks on an ad or link divided by the number of impressions, expressed as a percentage, measuring engagement.
- Attribution model
- A rule that assigns credit for a conversion to one or more marketing touchpoints, such as last-click, first-click, linear, or time-decay.
- Integrated marketing communications
- Coordinating all promotional tools and channels so they deliver a consistent, unified message to the target audience.
- Gross rating points
- A media measure equal to reach percentage multiplied by average frequency; it indicates total weight of an advertising schedule.
- AIDA model
- A hierarchy of communication effects: Attention, Interest, Desire, and Action, used to plan and sequence campaign messages.
- Push strategy
- A promotional approach that directs marketing effort at channel intermediaries to encourage them to stock and sell the product.
- Sales pipeline
- A visual representation of all open deals at each stage of the sales process, used to forecast revenue and manage conversion.
- Net Promoter Score
- A loyalty metric calculated as the percentage of promoters minus the percentage of detractors, based on likelihood-to-recommend ratings.
- RFM analysis
- A customer segmentation method using Recency, Frequency, and Monetary value of purchases to prioritise retention and reactivation efforts.
- Channel conflict
- Disagreement between channel members, such as direct and indirect channels, over goals, roles, or territory, which can harm performance.
- Break-even point
- The sales volume at which total revenue equals total cost, calculated as fixed costs divided by contribution margin per unit.
- Contribution margin
- The amount remaining from sales revenue after variable costs are deducted, which contributes to covering fixed costs and profit.
- Price elasticity of demand
- The percentage change in quantity demanded divided by the percentage change in price; absolute values above one indicate elastic demand.
- Working capital
- Current assets minus current liabilities, measuring a company's short-term liquidity and ability to fund day-to-day operations.
- CAGR
- Compound annual growth rate, calculated as (ending value divided by beginning value) raised to the power of one over the number of years, minus one.
- Weighted mean
- An average where each value is multiplied by its weight, summed, and divided by the sum of weights.
- Cannot say
- A verbal reasoning answer choice used when the passage does not provide enough information to confirm or deny the statement.
- SBI feedback model
- A feedback structure describing the Situation, Behaviour, and Impact, helping deliver specific and objective feedback without personal judgement.