109 - 116 Marketing Key terms

Question 1

What is marketing?

Answer 1

Marketing involves the understanding, anticipation and fulfilling of customer needs.

Question 2

What is market orientation?

Answer 2

Market orientation is when a business bases its marketing mix on the perception of what the market (customer) wants using market research and customer opinions.

Question 3

What is product orientation?

Answer 3

Product orientation is when a business bases its marketing mix on the business’s product strengths and capabilities.

Question 4

What is asset-led marketing?

Answer 4

A marketing strategy based on a firm’s own strengths, not solely on the customers’ needs.

Question 5

What is the marketing mix?

Answer 5

The marketing mix outlines the marketing strategy and consists of product, price, promotion, and place.

Question 6

What is a product portfolio?

Answer 6

The collection/range of all the goods and services offered by a business.

Question 7

What is a brand?

Answer 7

A brand is a business or product name/logo that can give customers a perception of what the business stands for.

Question 8

What is a unique selling point?

Answer 8

What distinguishes a product from ones sold by competitors.

Question 9

What is differentiation?

Answer 9

Distinguishing a product or service from others to attract more customers.

Question 10

What is the product lifecycle?

Answer 10

The product life cycle represents the stages that a product goes through from initial development to decline.

Question 11

What is an extension strategy?

Answer 11

An extension strategy is a way of prolonging the life of a product that stops it from reaching the decline stage.

Question 12

What is the Boston Matrix?

Answer 12

A technique which allows businesses to analyse their product portfolio by categorising products according to market growth and market share.

Question 13

What is penetration pricing?

Answer 13

Charging a low price to penetrate the market, often used in competitive markets.

Question 14

What is price skimming?

Answer 14

Charging a high price to maximise profits on each item sold for a limited period.

Question 15

What is cost-plus pricing?

Answer 15

Cost-plus pricing is where a profit percentage is added to the average cost of producing the good/service.

Question 16

What is competitive pricing?

Answer 16

Where a business considers what their competitors are charging for a product or service.

Question 17

What is psychological pricing?

Answer 17

Pricing products to make customers believe they are paying less than they really are.

Question 18

What is contribution pricing?

Answer 18

Price based on variable costs plus a contribution towards overheads and profits.

Question 19

What is above the line promotion?

Answer 19

Above the line promotion is advertising through mass media such as print and broadcast media.

Question 20

What is below the line promotion?

Answer 20

Promotional strategies used to target consumers more directly.

Question 21

What is a distribution channel?

Answer 21

The path taken by a product from the manufacturer to the final consumer.

Question 22

What is multi-channel distribution?

Answer 22

A combination of distribution channels used to get the product from manufacturer to consumer.

Question 23

What is digital media?

Answer 23

Any information that is broadcast through a screen, including text, audio, video, and graphics.

Question 24

What is e-tailing?

Answer 24

Electronic retail or e-shopping is a form of electronic commerce that allows consumers to buy goods or services online.

Question 25

What is m-commerce?

Answer 25

M-commerce is the buying and selling of goods and services online through wireless handheld devices.