MATSEC AM Marketing key terms

The activity of identifying customer needs and wants, then creating, communicating and delivering value to satisfy them profitably, usually through an exchange between buyer and seller.

The act of obtaining a desired product from someone by offering something in return, requiring two parties, each with something of value and freedom to accept or reject.

Basic requirements a person feels must be fulfilled, such as safety or belonging. They exist whether or not a marketer creates them, and products are bought to satisfy them.

Desires shaped by culture, personality and society for specific satisfiers of a deeper need, for example wanting a branded smartphone rather than simply communication.

Wants backed by buying power. A person may want many things, but only those willing and able to pay create demand that a firm can serve.

The set of benefits a company promises to deliver to satisfy customer needs, stating why a buyer should choose this offer rather than a competitor's.

The four controllable tools a firm combines to pursue its target market: product, price, place and promotion, adjusted together to fit the chosen positioning.

Anything offered to a market to satisfy a need or want, including physical goods, services, experiences and ideas, along with features, quality, branding and support.

The amount of money charged for a product or service, and the sum of values customers exchange for the benefits of having or using it.

The distribution decisions that make a product available to customers at the right time and location, covering channels, intermediaries, coverage and logistics.

The communication activities used to inform, persuade and remind target buyers about an offer, including advertising, sales promotion, public relations, personal selling and direct marketing.

Dividing a broad market into groups of buyers with similar needs or characteristics, so that each group can be served with a tailored offer.

Evaluating each segment's attractiveness and selecting the segment or segments the firm will serve, given its resources and objectives.

Designing the company's offer and image so that it occupies a distinct, valued place in the minds of target customers relative to competing products.

The systematic collection, analysis and interpretation of data about customers, competitors and markets to support marketing decisions.

Information gathered first-hand for the specific problem at hand, through surveys, interviews, observation or experiments, giving control but costing time and money.

Information already collected for another purpose, such as official statistics or trade reports, which is cheaper and faster but may be outdated or poorly matched.

A structured review of a firm's internal strengths and weaknesses alongside external opportunities and threats, used to match capabilities to the environment.

The actors and forces outside marketing that affect the firm's ability to build and maintain successful relationships with target customers, both micro and macro.

A comprehensive, systematic and periodic examination of a company's marketing objectives, strategies, organisation and activities, identifying problems and opportunities for improvement.

A written document setting out the target market, objectives, marketing strategy and mix, budget and controls for a defined planning period.

Goals stated so they are specific, measurable, achievable, relevant and time-bound, allowing managers to judge whether marketing activity has succeeded.

An attribute or capability that lets a firm outperform rivals by offering greater value, achieved through lower costs or meaningful differentiation that buyers notice.

Making an offer meaningfully distinct from competitors in ways valued by buyers, such as design, service quality or image, so price competition is reduced.

A name, term, sign, symbol or combination that identifies a seller's goods and distinguishes them from competitors, carrying accumulated reputation and meaning.

The added value a brand name gives to a product beyond the functional benefits it provides, reflected in customer preference, loyalty and willingness to pay more.

A buyer's consistent preference for and repeat purchase of one brand over alternatives, reducing vulnerability to competitor promotions.

The pattern of sales and profit a product typically follows over time, usually described as introduction, growth, maturity and decline, each needing different marketing decisions.

The set of interdependent organisations, such as wholesalers and retailers, that move a product from producer to final consumer or business user.

A business that sells goods or services directly to final consumers for personal use, adding value through assortment, convenience, location and service.

An intermediary that buys in bulk from producers and resells mainly to retailers, providing storage, transport, breaking bulk and market information.

The specific blend of advertising, sales promotion, public relations, personal selling and direct marketing tools a company uses to reach its communication objectives.

Any paid form of non-personal presentation and promotion of ideas, goods or services by an identified sponsor, delivered through mass or digital media.

The communication goals set for a campaign, typically to inform buyers about a new offer, persuade them to prefer a brand, or remind them to repurchase.

Face-to-face or direct interaction between a salesperson and a prospective buyer, allowing two-way dialogue, tailored persuasion and immediate response to objections.

The responsiveness of quantity demanded to a change in price, calculated as percentage change in quantity divided by percentage change in price; demand is elastic when the result exceeds one in absolute value.

The sales volume at which total revenue equals total cost, so the firm makes neither profit nor loss; fixed costs divided by contribution per unit.

The amount a product's selling price exceeds its variable cost per unit, which first covers fixed costs and then adds to profit.

A firm's sales expressed as a percentage of total sales in the market it competes in, a common indicator of competitive strength.

Managing detailed information about individual customers and carefully managing customer touchpoints to maximise loyalty, using databases to tailor offers and service.

The proportion of customers who continue buying from a firm over a period, often cheaper to improve than winning new customers.

Building long-term, mutually profitable ties with customers, suppliers and intermediaries by delivering superior value and satisfaction over repeated transactions.