NAMU CMMU flashcards

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

Marketing mix 4Ps

The four controllable decision areas of a marketing program: Product, Price, Place (distribution), and Promotion. Services add People, Process, and Physical evidence to form the 7Ps.

Needs, wants, demand

A need is a felt deprivation; a want is that need shaped by culture and personality; demand is a want backed by purchasing power. Marketers influence wants, not needs.

Ansoff growth matrix

Two axes, product (existing/new) and market (existing/new), produce four strategies: market penetration, product development, market development, and diversification. Diversification carries the highest risk.

BCG growth-share matrix

Classifies business units by market growth and relative market share into stars, cash cows, question marks, and dogs. Cash cows fund stars and selected question marks; dogs are harvested or divested.

Product life cycle

Four stages of sales and profit trajectory: introduction, growth, maturity, decline. Competitive intensity peaks in maturity, when differentiation and cost efficiency matter most.

Marketing vs. selling concept

The selling concept pushes existing products to generate volume; the marketing concept starts from customer needs and designs the offering backward, treating selling as one element of the mix.

Customer perceived value

Total customer benefit minus total customer cost, where cost includes monetary, time, energy, and psychological components. Satisfaction compares perceived performance against prior expectations.

Exploratory vs. descriptive research

Exploratory research is flexible and qualitative, used when the problem is poorly defined. Descriptive research quantifies frequencies and associations; causal research tests cause and effect through experiments.

Probability vs. non-probability sampling

Probability methods (simple random, systematic, stratified, cluster) give every unit a known nonzero selection chance and support inference. Non-probability methods (convenience, judgment, quota, snowball) do not.

Measurement scale types

Nominal assigns labels, ordinal ranks, interval has equal distances without a true zero, ratio has a true zero. Means and standard deviations are valid only for interval and ratio data.

Reliability and validity

Reliability is consistency of measurement across occasions or items; validity is whether the instrument measures the intended construct. Reliability is necessary but not sufficient for validity.

Consumer decision process

Five stages: need recognition, information search, evaluation of alternatives, purchase decision, and post-purchase behavior including satisfaction, dissonance, and disposal. Stages may be skipped in routine purchases.

Decision-making unit roles

Buying center roles: initiator, influencer, decider, buyer, and user. In organizational and family purchases these roles may be held by different people, so the target audience differs from the user.

Brand equity

The differential value a brand name adds to a product, reflected in willingness to pay a premium, loyalty, and resilience to competitive attack. Measured indirectly via awareness and associations, or directly via price premium.

CBBE pyramid

Keller's customer-based brand equity model: salience at the base, then performance and imagery, then judgments and feelings, with resonance at the top. Progression requires satisfying each level first.

Line stretching vs. filling

Line stretching lengthens an existing line down-market, up-market, or both ways. Line filling adds items within the current range to use excess capacity or block competitors, risking cannibalization.

Brand architecture options

House of brands keeps units independent; branded house uses one master brand; endorsed brands link a parent to sub-brands; hybrid combines approaches. Choice trades focus against reputation transfer.

Positioning statement form

A template: for [target segment], [brand] is the [frame of reference] that delivers [point of difference] because [reason to believe]. It forces a specific target, category, and differentiator.

Paid, owned, earned media

Paid media is purchased placement, owned media is controlled property such as a site or email list, earned media is unpaid coverage and sharing. Integration across all three outperforms optimizing one alone.

Quality score in paid search

An auction input combining expected click-through rate, ad relevance, and landing page experience. A higher score lowers cost per click and improves ad rank for the same bid.

Engagement rate

Engagements divided by reach or impressions, expressed as a percentage. Defining numerator and denominator consistently is essential, because platform definitions differ and comparisons otherwise mislead.

Attribution models

Rules assigning conversion credit across touchpoints: last click, first click, linear, time decay, and data-driven. Last-click undervalues upper-funnel activity such as awareness and content.

A/B test design

A controlled experiment varying one element, with random assignment and a sample size fixed in advance. The decision rule must be set before launch to prevent post-hoc rationalization.

Push vs. pull strategy

Push directs trade promotion and personal selling at intermediaries to secure distribution and shelf space. Pull builds end-user demand through advertising so consumers request the product, pressuring channels to stock it.

Workload approach to sizing

Sales force size equals total workload divided by selling time available per representative, where workload is accounts multiplied by calls per account multiplied by call duration.

Channel conflict types

Vertical conflict occurs between levels of the same channel, such as manufacturer and dealer. Horizontal conflict occurs between members at the same level, such as two retailers or franchisees.

ROI vs. ROAS

ROI is incremental profit minus investment, divided by investment. ROAS is attributed revenue divided by campaign cost and ignores margin, so a ROAS above one can still lose money.

Customer lifetime value

The present value of margin from a customer over the relationship. A simplified form multiplies average purchase value, purchase frequency, relationship length, and margin; a discounted form divides margin per period by churn plus discount rate.

CAC and payback period

Customer acquisition cost is total acquisition spend divided by new customers. Payback period is CAC divided by monthly gross margin per customer, showing how long until acquisition is recovered.

Incrementality testing

Comparing outcomes for a treated group against a randomized holdout or matched control to isolate causal lift. It corrects for attribution credit given to conversions that would have occurred anyway.

IMC consistency principle

Integrated marketing communication requires one positioning and message system across all touchpoints, with each channel assigned the funnel stage it can actually move rather than chosen by habit.

AIDA model

A sequential model of communication effects: Attention, Interest, Desire, Action. It guides channel and message selection by the stage the audience currently occupies.

GRP formula

Gross rating points equal reach percentage multiplied by average frequency. They summarize total weight of a media schedule but do not distinguish whether reach or frequency produced the total.

Objective-and-task budgeting

A budgeting method that sets communication objectives, determines the tasks and media needed to achieve them, and costs those tasks. It is the most defensible method but requires clear objectives.

Porter's five forces

Industry attractiveness determined by supplier power, buyer power, threat of new entrants, threat of substitutes, and competitive rivalry. Strong forces depress average profitability and shape strategy choice.

VRIO framework

A resource sustains advantage when it is valuable, rare, inimitable, and supported by organization. Failing any criterion yields temporary advantage, unused potential, or competitive parity.

Dark patterns

Interface designs that manipulate users into unintended choices, such as hidden unsubscribe links, pre-checked consent, or false urgency. They raise ethical and legal exposure and erode trust.

Greenwashing

Making unsubstantiated or exaggerated environmental claims to appear sustainable. It violates advertising substantiation rules and is increasingly subject to consumer protection enforcement.