MATSEC AM Marketing flashcards

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

Marketing definition

The process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return, encompassing product, price, place and promotion decisions.

Marketing mix

The set of controllable tactical marketing tools-product, price, place and promotion-that a firm blends to produce the response it wants in the target market.

Product in 4Ps

The goods and services combination the company offers to the target market, including variety, quality, design, features, brand name, packaging, services, warranties and returns.

Price in 4Ps

The amount of money customers must pay to obtain the product, covering list price, discounts, allowances, payment period and credit terms; it is the only mix element that generates revenue.

Place in 4Ps

The company activities that make the product available to target consumers, including channels, coverage, assortments, locations, inventory, transportation and logistics.

Promotion in 4Ps

Activities that communicate the merits of the product and persuade target customers to buy it, including advertising, personal selling, sales promotion, public relations and direct marketing.

Marketing orientation

A philosophy holding that achieving organisational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do.

Selling orientation

A philosophy that assumes consumers will not buy enough of the firm's products unless it undertakes a large-scale selling and promotion effort, typically used for unsought goods.

Societal marketing concept

The idea that a company should make marketing decisions by considering consumers' wants, the company's requirements, and society's long-run interests, balancing profits with social and environmental welfare.

Micro-environment

The actors close to the company that affect its ability to serve customers: the company itself, suppliers, marketing intermediaries, customer markets, competitors and publics.

Macro-environment

The larger societal forces that affect the whole micro-environment: demographic, economic, natural, technological, political and socio-cultural forces.

SWOT analysis

An assessment tool that evaluates a firm's internal strengths and weaknesses alongside external opportunities and threats, providing a basis for matching company capabilities to environmental conditions.

PESTLE analysis

A macro-environmental scanning framework examining Political, Economic, Social, Technological, Legal and Environmental factors that may affect an organisation's marketing strategy and operations.

Customer perceived value

The difference between the prospective customer's evaluation of all the benefits and all the costs of an offering relative to perceived alternatives.

Customer satisfaction

The extent to which a product's perceived performance matches a buyer's expectations; if performance falls short, the buyer is dissatisfied; if it exceeds expectations, the buyer is delighted.

Customer lifetime value

The net present value of the stream of profits a customer is expected to generate over the duration of the relationship with the firm.

Customer equity

The total combined customer lifetime values of all the company's current and potential customers; a measure of the future value of the customer base.

Market segmentation

Dividing a market into distinct groups of buyers with different needs, characteristics or behaviour, who might require separate products or marketing programmes.

Target marketing

The process of evaluating each market segment's attractiveness and selecting one or more segments to enter with a tailored marketing mix.

Market positioning

Arranging for a product to occupy a clear, distinctive and desirable place relative to competing products in the minds of target consumers.

Differentiation

Actually differentiating the market offering to create superior customer value, providing a basis for the brand's positioning and competitive advantage.

Marketing research

The systematic design, collection, analysis and reporting of data relevant to a specific marketing situation facing an organisation, used to inform marketing decisions.

Primary data

Information collected for the specific purpose at hand, gathered through observation, surveys, experiments or focus groups, and usually more costly and time-consuming than secondary data.

Secondary data

Information that already exists somewhere, having been collected for another purpose; it is cheaper and quicker to obtain but may be outdated, incomplete or not directly relevant.

Market segment criteria

For effective targeting, segments must be measurable, accessible, substantial, differentiable and actionable, allowing the firm to design and implement an effective marketing mix.

Demographic segmentation

Dividing the market into groups based on variables such as age, gender, family size, income, occupation, education, religion, ethnicity and generation.

Psychographic segmentation

Dividing buyers into groups based on social class, lifestyle or personality characteristics, often used to explain why consumers with similar demographics behave differently.

Behavioural segmentation

Dividing buyers into groups based on their knowledge, attitudes, uses or responses to a product, including occasions, benefits sought, user status, usage rate and loyalty status.

Value proposition

The full mix of benefits on which a brand is positioned; it answers the customer's question of why they should buy from this brand rather than a competitor.

Marketing environment

The actors and forces outside marketing that affect marketing management's ability to build and maintain successful relationships with target customers, comprising micro and macro components.

Product orientation

A philosophy that assumes consumers will favour products that offer the most quality, performance and features, and that the organisation should therefore focus on making continuous product improvements.

Production orientation

A philosophy that assumes consumers will favour products that are available and highly affordable, and that management should therefore focus on improving production and distribution efficiency.