PCM®, Marketing Management

Body of Knowledge
Overview

About the AMA PCM® Program

The American Marketing Association Professional Certified Marketer (AMA PCM®) exams are
created using a Body of Knowledge format which outlines the responsibilities of and knowledge
needed by today’s marketing professional in the specific topic.

Below is an outline of the eight major content areas, or domains, of the AMA PCM® Marketing
Management Body of Knowledge with an indication (in parentheses) of the approximate
percentage of the test devoted to each domain.

Each domain is further organized into topics and learning objectives. The following pages detail
the domains, topics and learning objectives, and a list of key terms to study as you prepare for the
PCM® Marketing Management exam.

Recommended Review

While accomplished marketing professionals should have a good grasp of

the content in this Body of Knowledge, the exam still requires preparation
for most candidates.

The AMA recommends Marshall and Johnston’s 3rd edition Marketing

Management textbook as a resource for those preparing for the AMA PCM®
Marketing Management exam. You can find further details regarding this
text and purchase online by clicking here.

The AMA does not require that individuals purchase or study from a specific
source to be eligible for the exam. Also, the AMA does not guarantee a
passing score on the exam for individuals who study from a specific source.
Table of Contents

DOMAIN 1: MARKETING STRATEGY (10%)

Topic 1: Marketing Management Fundamentals

Topic 2: Market Planning and Strategy

DOMAIN 2: GLOBAL, ETHICAL, AND SUSTAINABLE MARKETING (11%)

Topic 1: Issues in Managing Global Marketing

Topic 2: Ethics in Marketing Management
Topic 3: Sustainability in Marketing Strategy

DOMAIN 3: MANAGING INFORMATION FOR MARKETING INSIGHTS (15%)

Topic 1: Market Research Fundamentals

Topic 2: CRM
Topic 3: Data and Marketing Analytics

DOMAIN 4: BUYERS AND MARKETS (17%)

Topic 1: Consumer Behavior

Topic 2: Organizational Buyer Behavior
Topic 3: Segmentation, Targeting, and Positioning

DOMAIN 5: THE OFFERING – PRODUCT AND SERVICE (21%)

Topic 1: Product Strategy

Topic 2: New Product Development
Topic 3: Branding Strategy
Topic 4: Service Strategy

DOMAIN 6: MANAGE PRICING DECISIONS (7%)

Topic 1: Pricing Objectives and Strategies

Topic 2: Pricing Tactics
Topic 3: Execute the Pricing Strategy

DOMAIN 7: DELIVER THE VALUE OFFERING (8%)

Topic 1: Channels
Topic 2: Physical Distribution
Topic 3: Logistics
Topic 4: Supply Chain Management

DOMAIN 8: COMMUNICATE THE VALUE OFFERING (11%)

Topic 1: Promotion Management Basics

Topic 2: Digital Marketing
Topic 3: Social Media Marketing
Topic 4: Legacy Promotional Approaches

DOMAIN 1: MARKETING STRATEGY (10%)

Topic 1: Marketing Management Fundamentals

Learning Objectives

1. Identify typical misconceptions about marketing, why they persist, and the resulting challenges
for marketing management
2. Define what marketing and marketing management really are and how they contribute to a
firm’s success
3. Appreciate how marketing has evolved from its early roots to be practiced as it is today
4. Recognize the impact of key change drivers on the future of marketing

Key Terms

• Marketing management • Market orientation

• Marketing’s stakeholders • Customer orientation
• Societal marketing • Relationship orientation
• Sustainability • One-to-one marketing
• Value • Mass customization
• Exchange • Marketing (Big M)
• Production orientation • Strategic marketing
• Sales orientation • Market creation
• Marketing concept • Marketing (little m)
• Marketing mix (4Ps of marketing) • Tactical marketing
• Customer-centric • Marketing metrics
• Differentiation

Topic 2: Market Planning and Strategy

Learning Objectives

1. Examine the concept of value and the elements and role of the value chain
2. Understand the conditions required for successful marketing planning, that marketing planning
is focused on the value proposition, and that marketing planning is a dynamic process
3. Identify various types of organizational strategies
4. Conduct a situation analysis
5. Use the framework provided for marketing planning, along with the content in future chapters,
to build a marketing plan
Key Terms

• Benefit • Mission statement

• Utility • Strategic vision
• Value proposition • Goals
• Customer satisfaction • Objectives
• Customer loyalty • Strategy
• Customer retention • Generic strategy
• Customer switching • Competitive strategy
• Value chain • Core competencies
• Value-creating activities • Distinctive competencies
• Marketing planning • Sustainable competitive advantage
• Marketing plan • Strategic type
• Market-driven strategic planning • First-mover advantage
• Strategic business unit (SBU) • Situation analysis
• Corporate-level strategic plan • SWOT analysis
• SBU-level strategic plan • Market penetration strategies
• Portfolio analysis • Product development strategies
• Boston Consulting Group (BCG) Growth- • Market development strategies
Share Matrix • Diversification strategies
• GE Business Screen • Marketing control
• Functional-level plans

DOMAIN 2: GLOBAL, ETHICAL, AND SUSTAINABLE

MARKETING (11%)

Topic 1: Issues in Managing Global Marketing

Learning Objectives

1. Identify the various levels in the Global Marketing Experience Curve

2. Learn the essential information components for assessing a global market opportunity
3. Define the key regional market zones and their marketing challenges
4. Describe the strategies for entering new global markets
5. Recognize key factors in creating a global product strategy
Key Terms

• Developed economies • Decision Making Authority

• Emerging markets • Degree of Centralization
• Regional market zones • Global product lines
• NAFTA • Geographic regions
• MERCOSUR • Matrix Structure
• ASEAN • Country-of-origin effect
• Exporting • Global marketing themes
• Exporters • Global marketing with local content
• Distributors • Basket of global advertising themes
• Licensing • Local market ad generation
• Franchising • Transfer pricing
• Strategic Alliances • Dumping
• Joint Ventures • Gray market
• Direct Foreign Investment

Topic 2: Ethics in Marketing Management

Learning Objectives

1. Understand the importance of ethics in Marketing Management and Strategy

2. Identify the linkage between ethics and the value proposition
3. Describe the impact of ethics on the elements in the marketing mix

Key Terms

• Marketing ethics
• Triple Bottom Line

Topic 3: Sustainability in Marketing Strategy

Learning Objectives

1. Recognize the significance of sustainability as part of marketing strategy and the use of the
triple bottom line as a metric for evaluating corporate performance
2. Know the concept of triple bottom line as a metric for evaluating corporate performance

Key Term

• Triple Bottom Line

DOMAIN 3: MANAGING INFORMATION FOR MARKETING
INSIGHTS (15%)

Topic 1: Market Research Fundamentals

Learning Objectives

1. Describe the difference between market information systems and market research systems
2. Identify how critical internal (inside the firm) information is collected and used in making
marketing decisions
3. Explain essential external (outside the firm) information collection methods
4. Recognize the value of market research and its role in marketing
5. Define the market research process
6. Illustrate current research technologies and how they are used in market research

Key Terms

• Market information systems (MIS) • Quantitative research

• Marketing intelligence • Focus group
• Demographics • In-depth interview
• Microeconomics • Surveys
• Macroeconomics • Behavioral data
• Market research • Observational data
• Management research deliverable • Mechanical observation
• Research problem • Open-ended questions
• Exploratory research • Closed-ended questions
• Descriptive research • Census
• Casual research • Sample
• Primary data • Probability sampling
• Secondary data • Nonprobability sampling
• Qualitative research • Online database

Topic 2: CRM

Learning Objectives

1. Define CRM and articulate its objectives and capabilities

2. Describe the CRM process cycle
3. Understand the concept of customer touchpoints and why touchpoints are critical in CRM
Key Terms

• Customer relationship management (CRM) • Data warehouse

• Customer satisfaction • Data mining
• Customer loyalty • Database marketing
• Customer lifetime value (CLV) • Organizational learning
• Return on customer investment (ROCI) • Formalization
• Firing a customer • Customer mind-set
• Customer touchpoints

Topic 3: Data and Marketing Analytics

Learning Objectives

1. Identify and appreciate the types of data used in marketing management decision making
2. Recognize key approaches to marketing analytics
3. Understand the concept of a marketing dashboard and how it improves marketing planning for
a firm
4. Explain return on marketing investment (ROMI), including cautions about its use

Key Terms

• Big data • Predictive analytics

• Structured data • Prescriptive analytics
• Unstructured data • Sentiment analysis
• Semi-structured data • Attribution
• Marketing analytics • Content filtering
• Marketing analyst • Collaborative filtering
• Descriptive analytics • Marketing dashboard
• Diagnostic analytics • Return on marketing investment (ROMI)

DOMAIN 4: BUYERS AND MARKETS (17%)

Topic 1: Consumer Behavior

Learning Objectives

1. Understand the value of knowing the consumer

2. Consider the role of personal and psychological factors in consumer decision making
3. Appreciate the critical and complex role of cultural, situational, and social factors in a consumer
purchase decision
4. Understand the consumer decision-making process
Key Terms

• Demographics • Opinion leaders

• Family life cycle • Market mavens
• Lifestyle • Reference group
• Gender roles • Desirability
• Motivation • Degree of affiliation
• Attitude • Primary groups
• Multi-attribute model • Secondary groups
• Perception • Involvement
• Selective awareness • High-involvement learning
• Selective distortion • Low-involvement learning
• Selective retention • Real state
• Memory • Preferred state
• Short-term memory • Minimal information search
• Long-term memory • Extensive information search
• Learning • Limited information search
• Conditioning • Internal information sources
• Cognitive learning • External information sources
• Personality • Complete set
• Culture • Awareness set
• Language • Consideration (evoked) set
• Cultural values • Emotional choices
• Nonverbal communication • Attitude-based choices
• Subculture • Attribute-based choice
• Family • Post-purchase dissonance
• Household life cycle (HLC) • Instrumental performance
• Social class • Symbolic performance
• Aspirational purchases

Topic 2: Organizational Buyer Behavior

Learning Objectives

1. Understand the critical role of the buying center and each participant in the B2B process
2. Learn the B2B purchase decision process and different buying situations
3. Comprehend the role of technology in business markets
4. Understand the differences between B2C and B2B markets
Key Terms

• Business-to-business (B2B) markets • North American Industrial Classification

• Supply chain System (NAICS)
• Product demand • Original equipment manufacturer (OEM)
• Derived demand • End user purchases
• Acceleration effect • Capital equipment
• Inelastic demand • Materials, repairs, and operational (MRO)
• Buying decisions • Resellers
• Straight rebuy • Government
• Out suppliers • Institutions
• Modified rebuy • Request for proposal (RFP)
• New purchase • Product choice
• Buying center • Supplier choice
• Users • Reliability
• Initiator • Personal factors
• Influencers • Organizational factor
• Gatekeepers • Electronic data interchange (EDI)
• Deciders • E-procurement

Topic 3: Segmentation, Targeting, and Positioning

Learning Objectives

1. Explain the criteria for effective segmentation

2. Identify the various approaches to market segmentation
3. Describe the steps in target marketing
4. Define positioning and link it to the use of the marketing mix
5. Use and interpret positioning maps
6. Identify sources of differentiation
7. Avoid potential positioning errors

Key Terms

• Market segmentation • Tertiary target markets

• Differentiation • Target markets to abandon for future
• Geographic segmentation development
• Demographic segmentation • Undifferentiated target marketing
• Family life cycle • Concentrated target marketing
• Psychographic segmentation • Customized (one-to-one) marketing
• VALS Framework • Positioning
• Behavioral segmentation • Positioning strategy
• Target marketing • Perceptual map
• Primary target markets • Repositioning
• Secondary target markets
DOMAIN 5: THE OFFERING – PRODUCT AND SERVICE (21%)

Topic 1: Consumer Behavior

Learning Objectives

1. Understand the essential role of the product experience in marketing

2. Define the characteristics of a product
3. Recognize how product strategies evolve from one product to many products
4. Understand the life of a product and how product strategies change over time

Key Terms

• Product • Capital goods

• Stock-keeping unit (SKU) • Form
• Essential benefit • Feature
• Core product • Conformance
• Enhanced product • Durability
• Tangibility • Reliability
• Durability • Reparability
• Nondurable product • Style
• Durable product • Product line
• Convenience goods • Product mix
• Shopping goods • Product life cycle (PLC)
• Specialty goods • Fads
• Unsought goods • Market penetration
• Materials • Market skimming
• Parts
• MRO supplies (maintenance, repair,
operating)

Topic 2: New Product Development

Learning Objectives

1. Recognize the importance of new product development to long-term success

2. Understand the new product development process
3. Identify how new products become diffused in a market
Key Terms

• New-to-the-world product • Cost reduction

• Upgrades or modifications to existing • Go-to-market mistake
products • Stop-to-market mistake
• Additions to existing product lines • Business case analysis
• Reposition existing products • Innovation diffusion process

Topic 3: Branding Strategy

Learning Objectives

1. Recognize the essential elements in a brand

2. Learn the importance of brand equity in product strategy
3. Explain the role of packaging and labeling as critical brand elements
4. Define the responsibility of warranties and service agreements in building consumer confidence

Key Terms

• Brand • Stand-alone brands

• Brand strategy • Family branding
• Brand identity • Category extension
• Brand equity • National brands
• Brand awareness • Store brand
• Brand loyalty • Licensing
• Perceived quality • Co-branding
• Brand association • General warranties
• Brand assets • Specific warranties

Topic 4: Service Strategy

Learning Objectives

1. Understand why service is a key source of potential differentiation

2. Explain the characteristics that set services apart from physical goods
3. Explain the service-profit chain and how it guides marketing management decisions about service
4. Describe the continuum from pure goods to pure services
5. Discuss the elements of service quality and gap analysis
6. Measure service quality through use of SERVQUAL
7. Understand service blueprinting and how it aids marketing managers
Key Terms

• Service • Customer advocacy

• Service economy • Search attributes
• Service sector • Experience attributes
• Service dominant logic • Credence attributes
• Intangibility • Professional services
• Inseparability • Customer delight
• Variability • Delightful surprises
• Perishability • Service quality
• Fluctuating demand • Service encounter
• Service-profit chain • Moment of truth
• Internal marketing • Gap model
• Customer-centric • Service recovery
• Customer mind-set • Service failure
• Customer expectations management • Dimensions of service quality
• Customer retention • Tangibles

DOMAIN 6: MANAGE PRICING DECISIONS (7%)

Topic 1: Pricing Objectives and Strategies

Learning Objective

1. Explore different pricing objectives and related strategies.

Key Terms

• Cost Leadership • Price elasticity of demand

• Penetration Pricing • Competitor based pricing
• Market Share • Price war
• Price Skimming • Stability pricing
• Profit Maximization • Value pricing
• Target ROI

Topic 2: Pricing Tactics

Learning Objectives

1. Identify pricing tactics

2. Describe approaches to setting the exact price
3. Determine discounts and allowances to offer to channel members
Key Terms

• Product line pricing (price lining) • Cost-plus pricing

• Price Points • Markup on cost
• Captive pricing (or complementary pricing) • Markup on sales price
• Price bundling • Average cost pricing
• Reference pricing • Target return pricing
• Prestige pricing • Discounts
• Odd pricing • Allowances
• Even pricing • Cash discounts
• Psychological pricing • Trade discounts
• One-price strategy • Quantity discounts
• Variable pricing • Seasonal discounts
• Everyday low pricing (EDLP) • Promotional allowances
• High/low pricing • FOB Pricing
• Auction pricing • Uniform delivered pricing
• Reverse auctions • Zone pricing

Topic 3: Execute the Pricing Strategy

Learning Objectives

1. Understand how to execute price changes

2. Understand legal considerations in pricing

Key Terms

• Just-noticeable difference • Predatory pricing

• Price-fixing • Fair trade laws
• Price discrimination • Minimum markup laws
• Deceptive pricing • Loss leader products
• Bait and switch

DOMAIN 7: DELIVER THE VALUE OFFERING (8%)

Topic 1: Channels

Learning Objectives

1. Define a value network and how organizations operate within this approach
2. Identify various types of intermediaries and distribution channels
3. Explain the different types of vertical marketing systems
4. Utilize suitable criteria to select appropriate channel approaches
Key Terms

• Value network • Retailer cooperative

• Value co-creation • Wholesaler cooperative
• Network organization (virtual organization) • Administered VMS
• Channel of distribution • Channel captain (channel leader)
• Intermediaries • Partner relationship management (PRM)
• Merchant intermediaries strategies
• Agent intermediaries • Channel power
• Direct channel • Channel conflict
• Indirect channel • Coercive power
• Facilitating functions • Reward power
• Disintermediation • Expert power
• Vertical marketing system (VMS) • Referent power
• Corporate VMS • Legitimate power
• Vertical integration • Push strategy
• Contractual VMS • Slotting allowance (shelf fee)
• Franchise organization • Pull strategy

Topic 2: Pricing Tactics

Learning Objective

1. Understand the impact of intermediary contributions via physical distribution functions, transaction
and communication functions, and facilitating functions

Key Terms

• Physical distribution (logistics) • Distribution intensity

• Breaking bulk • Intensive distribution
• Accumulating bulk • Convenience goods
• Sorting • Impulse goods
• Creating assortments • Shopping goods
• Reducing transactions • Selective distribution
• Transportation and storage • Exclusive distribution

Topic 3: Logistics

Learning Objective

1. Identify the logistics aspects of supply chain management

Key Terms

• Outbound logistics • Enterprise resource planning (ERP)

• Inbound logistics systems
• Reverse logistics • Just-in-time (JIT) inventory control system
• Stock-out • Materials requirement planning (MRP)

Topic 4: Supply Chain Management

Learning Objective

1. Understand the role of retailing and e-commerce in delivering the value offering to the customer

Key Terms

• Supply chain • Retailing

• Supply chain management • Electronic commerce (e-commerce)
• Outsourcing (third-party logistics, 3PL) • Electronic retailing (e-retailing or e-tailing)
• Exclusive dealing • Omnichannel retailing
• Exclusive territory • Market makers
• Tying contract • Customer communities

DOMAIN 8: COMMUNICATE THE VALUE OFFERING (11%)

Topic 1: Promotion Management Basics

Learning Objectives

1. Understand promotion and identify the elements of promotion mix

2. Explain the hierarchy of effects (AIDA) model and its usefulness to promotion strategy

Key Terms

• Promotion • Promotional mix strategies

• Promotion mix • Promotional campaign
• Digital and social media marketing • Push strategy
• Advertising sales promotion • Pull strategy
• Public relations (PR) • Internal marketing
• Personal selling • AIDA model
Topic 2: Digital Marketing

Learning Objective

1. Discuss the role and key types of digital marketing in communicating value to customers

Key Terms

• Digital marketing • Search ads

• Paid media • Social network ads
• Cost per impression • Native ads
• Cost per click • Landing page
• Owned media • Microsites
• Earned media • Blog
• Digital advertising • Search engine optimization (SEO)
• Display ads • M-commerce
• Banner ads • Geolocation marketing
• Interstitials • Branded mobile apps
• Retargeting • In-app ads

Topic 3: Social Media Marketing

Learning Objective

1. Identify the key types of social media and their benefits to marketers in communicating value to
customers

Key Terms

• Social networks • Seeding strategy

• Viral marketing • Online brand communities

Topic 4: Legacy Promotional Approaches

Learning Objective

1. Understand the key types of advertising and the role of the creative agency
2. Identify various approaches to sales promotion and how each might be used
3. Describe the activities and aims of public relations
4. Understand the role of personal selling in marketing communications
5. Learn the process of relationship selling
6. Understand the major job responsibilities of sales management
Key Terms

• Advertising wearout • Missionary sales people

• Advertising response function • Technical selling
• Institutional advertising • Key account salespeople
• Product advertising • Outbound telemarketing
• Pioneering advertising • Inbound telemarketing
• Competitive advertising • Sales presentation
• Comparative advertising • Closing the sale
• Reach • Follow-up
• Frequency • Outsourcing the sales force
• Advertising execution • Transaction cost analysis (TCA)
• Clutter • Sales skill level
• Trade show • Motivation
• Cooperative advertising and promotion • Extrinsic rewards
• Allowance • Intrinsic rewards
• Publicity buzz • Salary
• Event sponsorships • Incentives
• Crisis management • Commission
• Personal selling • Nonfinancial incentives
• Trade services
If you have additional questions after reviewing
this document, please contact us.

American Marketing Association

Professional Certified Marketer® Program
130 E. Randolph St., 22nd Floor
Chicago, 60601, USA

Phone:
1.800.AMA.1150

E-mail:
[email protected]

Website:
AMA.org/PCM