MATSEC IM Marketing flashcards

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

Marketing

The management process of identifying, anticipating and satisfying customer requirements profitably through exchange; it involves creating, communicating and delivering value to chosen target markets.

Exchange

The core marketing concept: two or more parties give something of value to each other, each must have something the other wants, and each must be free to accept or reject.

Marketing orientation

A business philosophy where the company first determines customer needs and wants, then designs products and services to satisfy them, rather than pushing whatever it can produce.

Societal marketing concept

A philosophy holding that the firm should deliver customer satisfaction and profit while preserving or enhancing the consumer's and society's long-term well-being, balancing company, consumer and public interests.

Needs, wants and demand

Needs are basic human requirements; wants are needs shaped by culture and personality; demand is wants supported by buying power. Marketers influence wants and demand but cannot create needs.

Marketing mix 4Ps

The controllable tactical tools: Product (features, quality, branding, packaging), Price (list price, discounts, credit terms), Place (channels, coverage, logistics) and Promotion (advertising, sales promotion, PR, selling).

Extended marketing mix 7Ps

The 4Ps plus People (staff and service quality), Process (service delivery systems) and Physical evidence (tangible cues such as décor or uniforms), used mainly for service marketing.

SWOT analysis

A planning tool summarising internal Strengths and Weaknesses, which are controllable, and external Opportunities and Threats, which are not; it feeds directly into objective setting and strategy choice.

PESTLE analysis

A macro-environment audit covering Political, Economic, Social, Technological, Legal and Environmental forces that affect all firms in a market and lie outside company control.

Marketing environment

The micro environment (company, suppliers, intermediaries, customers, competitors, publics) and the macro environment (PESTLE forces) that surround and shape marketing decisions.

Marketing plan

A written document covering executive summary, situation analysis, SMART objectives, STP strategy, 4Ps tactics, action programmes, budget and control mechanisms, used to guide and monitor marketing activity.

Ansoff growth matrix

A grid of growth options: market penetration (existing product and market), market development (new market), product development (new product) and diversification (both new, highest risk).

Marketing research

The systematic design, collection, analysis and reporting of data relevant to a specific marketing problem; methods include surveys, observation, experiments, focus groups and secondary data review.

Market segmentation

Dividing a heterogeneous market into distinct groups with similar needs or characteristics using geographic, demographic, psychographic or behavioural variables; segments should be measurable, accessible, substantial and actionable.

Target marketing

Evaluating each segment's attractiveness and selecting one or more to serve; strategies are undifferentiated, differentiated, concentrated (niche) and micromarketing (local or individual).

Positioning

Designing the company's offer and image so that it occupies a distinct and valued place in the mind of the target customer relative to competing brands.

Unique selling proposition

The single distinctive benefit or claim that differentiates a brand from competitors and is meaningful, believable and hard for rivals to copy; it underpins the positioning statement.

Buyer decision process

The five stages a consumer passes through: need recognition, information search, evaluation of alternatives, purchase decision and post-purchase behaviour, including satisfaction or cognitive dissonance.

Cognitive dissonance

Post-purchase doubt or discomfort felt when a buyer notices drawbacks of the chosen brand and attractive features of rejected alternatives; marketers reduce it with reassurance and after-sales support.

Reference group

A social group whose values, attitudes or behaviour an individual uses as a comparison point; it can be membership, aspirational or dissociative and influences product and brand choice.

Product life cycle

The sales and profit path of a product through introduction, growth, maturity and decline, each stage requiring different pricing, promotion and competitive strategies.

Price skimming

Setting a high initial price to capture maximum revenue from early adopters willing to pay more, then lowering it over time; suits innovative or premium products with limited early competition.

Penetration pricing

Setting a low initial price to win market share quickly and discourage competitors from entering; volumes and cost economies must eventually offset the thin initial margin.

Break-even pricing

Calculating the sales volume at which total revenue equals total cost: break-even quantity equals fixed costs divided by price minus variable cost per unit.

Cost-plus pricing

Adding a standard mark-up percentage to the unit cost of a product to set its selling price; simple and cost-based but ignores demand, perceived value and competitors' prices.

Promotion mix

The blend of advertising, sales promotion, public relations, personal selling and direct marketing used to communicate with target customers and achieve communication objectives.

AIDA model

A hierarchy describing the buyer journey as Attention, Interest, Desire and Action; promotional messages are designed to move prospects through these stages towards purchase.

Distribution channel

The set of interdependent organisations that make a product available to consumers; length is measured by intermediary levels, and coverage may be intensive, selective or exclusive.

Channel conflict

Disagreement among channel members over goals, roles or margins; vertical conflict is between different levels, horizontal conflict between firms at the same level, such as two competing retailers.

Brand equity

The added value a brand name gives to a product, reflected in premium prices, customer loyalty, awareness and perceived quality; it is a valuable intangible asset.

Marketing objective

A quantified goal for a defined period, typically SMART (specific, measurable, achievable, relevant, time-bound), such as a percentage rise in market share or sales revenue.

Market share

A company's sales expressed as a percentage of total sales in the defined market; it can be measured by volume or by value and indicates competitive strength.