MTTC Business, Management, Marketing, and Technology (098) key terms

The four controllable decisions a business combines to reach its target market: product (what is offered), price (what it costs), place (how it reaches buyers), and promotion (how buyers learn about it). Changing one element usually forces adjustments in the others.

The specific group of buyers a company chooses to serve with its marketing effort. It is selected after segmentation and analysis, and every element of the marketing mix is designed with that group's needs and buying behavior in mind.

Dividing a broad market into smaller groups of buyers with similar needs, traits, or behaviors. Common bases are demographic, geographic, psychographic, and behavioral. Segments must be measurable, accessible, substantial, and actionable to be useful.

Splitting a market by observable population traits such as age, gender, income, education, occupation, family life cycle, and ethnicity. These data are easy to collect and compare, but they may not explain why people buy.

Grouping buyers by inner characteristics such as lifestyle, values, personality, and interests. It often explains purchase choices that demographics alone cannot, and it underlies lifestyle and values-based advertising appeals.

The place a brand occupies in the customer's mind relative to competitors. It is built through consistent messages about a distinct benefit, and it is usually summarized in a positioning statement naming the target, the category, and the key difference.

The one benefit a product offers that competitors do not, stated clearly enough that customers can repeat it. A strong USP is meaningful to buyers, defensible, and hard for rivals to copy quickly.

Designing real or perceived differences that make an offering stand out from alternatives, such as features, quality, service, design, or image. Differentiation supports higher prices and stronger loyalty when customers value the difference.

The four stages a product typically passes through: introduction, growth, maturity, and decline. Sales and profit patterns shift at each stage, so pricing, promotion, and distribution strategies must be adjusted as the product moves along.

A group of related products sold under one brand that serve similar needs or buyers, often differing in size, features, or price. Firms lengthen lines to reach more segments and may prune weak items to control cost.

The full set of product lines and items a company offers. It is described by width (number of lines), length (total items), depth (variants per item), and consistency (how closely lines relate in use or distribution).

The added value a brand name gives a product, reflected in customer loyalty, willingness to pay more, and resilience to competitive attacks. It is built over time through consistent quality, messaging, and customer experience.

Using an established brand name on a new product in a different category. It can lower launch costs and speed acceptance, but a failed extension or a poor fit can dilute trust in the parent brand.

A measure of how much quantity demanded responds 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 and inelastic when it is below one.

Setting a low introductory price to attract buyers quickly, build market share, and discourage competitors. It works best when demand is price sensitive and unit costs fall with volume; recovering margin later can be difficult.

Launching a new product at a high price to capture revenue from buyers who value it most, then lowering the price over time. It suits innovative or prestige goods with limited early competition and low price sensitivity.

Calculating the sales volume at which total revenue equals total cost. Break-even units equal fixed costs divided by the contribution margin per unit (price minus variable cost per unit). It supports pricing and cost decisions.

An expense that does not change with the number of units produced or sold in the short run, such as rent, insurance, or salaried staff. Fixed costs raise break-even volume and increase operating risk when sales fall.

An expense that rises and falls directly with output, such as raw materials, packaging, and hourly production labor. Variable cost per unit sets the floor for pricing and determines the contribution each sale makes.

The amount a sale leaves after variable costs to cover fixed costs and profit, found by subtracting variable cost per unit from selling price. It is often expressed as a ratio and used in break-even and product-mix decisions.

The set of intermediaries, such as wholesalers, distributors, and retailers, that move a product from producer to final buyer. Channel choices affect cost, coverage, control, and the level of service customers receive.

Disagreement among members of a distribution channel over goals, roles, or profits, such as a manufacturer selling online in competition with its retailers. Left unmanaged, it can damage relationships and reduce market coverage.

Placing a product in as many outlets as possible so buyers can find it easily. It suits low-cost convenience goods bought frequently, and it trades control and margin for maximum availability and brand exposure.

The blend of advertising, personal selling, sales promotion, public relations, and direct or digital marketing a firm uses to communicate with buyers. The mix shifts with product type, budget, target audience, and stage in the buying process.

Paid, nonpersonal communication about a product or organization delivered through media such as television, print, radio, outdoor, and digital channels. It builds awareness and image but offers limited immediate feedback.

Short-term incentives meant to trigger a purchase, such as coupons, rebates, samples, contests, and limited-time discounts. These tactics lift volume quickly but can train customers to wait for deals if overused.

Two promotional approaches: push directs trade promotion and personal selling toward channel members to stock and promote a product, while pull builds consumer demand through advertising so buyers request it from retailers.

The systematic process of defining a problem, collecting and analyzing data, and reporting findings to support marketing decisions. It uses primary data gathered for the project and secondary data already published.

Information collected first-hand for the specific question at hand, through surveys, interviews, observation, or experiments. It fits the need closely but costs more time and money than using existing sources.

Information already gathered by someone else, such as government statistics, trade reports, and company records. It is fast and inexpensive but may be outdated, incomplete, or collected for a different purpose.

A planning tool that lists internal strengths and weaknesses alongside external opportunities and threats. It pairs each internal factor with external conditions to guide strategy, and it is often the starting point for a marketing plan.

The process of setting an organization's long-term direction, defining mission and goals, and allocating resources to reach them. It links analysis of the environment to specific objectives and action plans at each level.

A written document describing target markets, objectives, marketing mix decisions, budgets, and controls for a set period. It coordinates activities and provides measures for evaluating results against goals.

The way authority, tasks, and reporting lines are arranged, such as functional, divisional, or matrix designs. Structure determines who decides what and how quickly information moves between units.

The number of subordinates who report directly to one manager. A wide span flattens the hierarchy and speeds decisions but limits supervision; a narrow span allows closer coaching at the cost of more management layers.

The unbroken line of authority running from the top of an organization to each lower position. It clarifies who reports to whom and supports accountability, though strict lines can slow communication.

Assigning a task and the authority needed to complete it to a subordinate while keeping accountability for the result. Effective delegation develops staff and frees managers for higher-level work.

Recurring patterns of leader behavior, commonly classified as autocratic, democratic, and laissez-faire. The best style depends on task structure, follower skill and motivation, and the pressure of the situation.

Frameworks explaining what drives employee effort, such as Maslow's hierarchy, Herzberg's two-factor theory, and expectancy theory. They guide how pay, recognition, job design, and goals are used to improve performance.

Structuring tasks, responsibilities, and relationships of a job to improve satisfaction and productivity. Techniques include job simplification, rotation, enlargement, and enrichment, which adds decision authority and feedback.

The formal process of evaluating an employee's work against standards and giving feedback. Good systems use observable criteria, regular documentation, and a two-way review tied to development and rewards.