Praxis Marketing Education cheat sheet

Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large (AMA definition).

Core marketing mix (4 Ps): Product, Price, Place, Promotion. Service marketing adds People, Process, and Physical evidence (7 Ps).

Marketing concept: achieve organizational goals by satisfying customer needs better than competitors; contrasts with production, product, and selling orientations.

Customer lifetime value (CLV) = (average purchase value × purchase frequency × customer lifespan) − acquisition and retention costs.

Market share = (company sales ÷ total market sales) × 100; unit share uses units instead of revenue.

Break-even point in units = fixed costs ÷ (unit selling price − unit variable cost); contribution margin per unit is the denominator.

SWOT analysis classifies internal Strengths and Weaknesses and external Opportunities and Threats; it is a situational tool, not a strategy.

Business cycle phases: expansion, peak, contraction, trough; marketing budgets and consumer spending generally move with the cycle.

Ethics and law: deceptive advertising, price fixing, and bait-and-switch violate FTC rules; consumer protection laws vary by jurisdiction.

Strategic planning hierarchy: mission → corporate objectives → SBU/portfolio strategy → marketing strategy → marketing plan → implementation and control.

SMART objectives are Specific, Measurable, Achievable, Relevant, and Time-bound; marketing objectives should tie to sales, share, or awareness metrics.

Market segmentation bases: demographic, geographic, psychographic, behavioral. Segments must be measurable, accessible, substantial, differentiable, and actionable.

Targeting strategies: undifferentiated (mass), differentiated (multiple segments), concentrated (niche), and micromarketing (local or individual).

Positioning statement format: For [target segment], [brand] is the [frame of reference] that [point of difference] because [reason to believe].

Porter's generic strategies: cost leadership, differentiation, and focus (cost focus or differentiation focus); being stuck in the middle risks low profitability.

Ansoff growth matrix: market penetration, market development, product development, diversification - ordered from lowest to highest risk.

BCG matrix: stars (high growth, high share), cash cows (low growth, high share), question marks (high growth, low share), dogs (low growth, low share).

Marketing plan components: executive summary, situation analysis, objectives, target market and positioning, marketing mix, budget, timeline, and control metrics.

Product levels: core benefit, actual product (features, design, quality, brand), and augmented product (warranty, delivery, installation, support).

Product classification: convenience, shopping, specialty, and unsought goods; each implies different distribution, promotion, and pricing intensity.

Product life cycle stages: introduction, growth, maturity, decline; profit typically peaks in late growth or early maturity, not at launch.

Line stretching adds products above, below, or both ends of a current line; line filling adds items within the existing range.

Brand equity is the differential value a brand name adds; measured via awareness, associations, perceived quality, loyalty, and proprietary assets.

Service characteristics: intangibility, inseparability, variability, perishability - each drives specific marketing responses such as standardization or capacity management.

New product development stages: idea generation, screening, concept testing, business analysis, prototype development, test marketing, commercialization.

Quality tools: Total Quality Management (TQM) and Six Sigma target defect reduction; SERVQUAL measures service quality across five dimensions including reliability and responsiveness.

Promotion mix: advertising, sales promotion, personal selling, public relations, and direct/digital marketing; the blend depends on product type, budget, and target.

AIDA model: Attention, Interest, Desire, Action; used to structure persuasive messages and selling presentations.

Push strategy targets channel members with trade promotions; pull strategy targets end consumers with advertising and consumer promotions.

Advertising objectives: informative (introduction), persuasive (growth/competition), reminder (maturity); media selection weighs reach, frequency, cost per thousand (CPM).

CPM = (advertising cost ÷ impressions) × 1,000; used to compare media cost efficiency.

Personal selling steps: prospecting, preapproach, approach, presentation, handling objections, closing, and follow-up.

Sales promotion tools: coupons, rebates, samples, contests, sweepstakes, loyalty programs, trade shows; generally short-term and measurable.

Public relations builds goodwill through publicity, press releases, community relations, and crisis communication; earned media is not paid placement.

Digital metrics: click-through rate (CTR) = clicks ÷ impressions; conversion rate = conversions ÷ visitors; return on ad spend (ROAS) = revenue ÷ ad cost.

Channel levels: zero-level (direct), one-level (retailer), two-level (wholesaler → retailer), three-level (agent → wholesaler → retailer); more levels mean less control and more margin stacking.

Channel functions: transactional (buying, selling, risk taking), logistical (assorting, storing, transporting), and facilitating (financing, grading, marketing information).

Intensive distribution suits convenience goods; selective distribution suits shopping goods; exclusive distribution suits specialty goods and luxury brands.

Pricing approaches: cost-based (cost-plus, markup), demand-based (value, target-return), and competition-based (going-rate, sealed-bid).

Markup on cost = (selling price − cost) ÷ cost; margin on price = (selling price − cost) ÷ selling price - the two percentages differ.

Price elasticity of demand = percentage change in quantity demanded ÷ percentage change in price; |E| > 1 is elastic, |E| < 1 is inelastic.

Pricing strategies: skimming (high initial price), penetration (low initial price), psychological pricing (odd-even, prestige), bundle pricing, and loss-leader pricing.

Supply chain management coordinates suppliers, manufacturers, distributors, and retailers; logistics focuses on order processing, inventory, warehousing, and transportation.

Legal pricing constraints include price fixing, predatory pricing, and resale price maintenance; rules differ by jurisdiction.

Common marketing roles: market research analyst, brand/product manager, digital marketing specialist, sales representative, advertising account manager, and marketing coordinator.

DECA and Future Business Leaders of America (FBLA) are student organizations that offer competitive events aligned with marketing and business curricula.

Career and technical education (CTE) marketing programs often align with state standards and industry certifications such as the Google Analytics and HubSpot credentials.

Professional marketing associations include the American Marketing Association (AMA) and the American Advertising Federation (AAF); they publish research and set ethical codes.

Portfolio development: document campaigns, analytics projects, and sales results with measurable outcomes to demonstrate competence to employers.

Work-based learning options include internships, cooperative education, job shadowing, and school-based enterprises (student-run stores).

Continuing education: industry conferences, webinars, certifications, and professional reading keep skills current in a fast-changing digital field.

Career planning steps: self-assessment, occupational research, goal setting, education/training plan, job search, and ongoing evaluation.