3 business definitions section 3 Flashcards
Marketing
The process of identifying, anticipating and satisfying customer needs profitably
Marketing research
involves the gathering and analysis of research to help support the implementation of marketing strategy
Primary research
Data collected first-hand for a specific research purpose
Secondary research
Data that already exists and which has been collected for a different purpose
Quantitative research
research based on numerical data
Qualitative research
research based on views and opinions
Price
The money charged for a product or a service
Price skimming
Charging a premium price when a product is first launched (if new in the market) in order to maximize revenue per unit (when competitors enter the market, the price goes down)
Penetration pricing
Offering a significantly lower price than normal in an attempt to maximize volume sold and to build an installed base of product users
Dynamic pricing
Setting flexible prices for products or services based on current market demands
Direct/
Indirect distribution
Producer and consumer deal directly.
Involves the use of an intermediaries between the producer and the consumer
Distribution channel
The route a product takes from production to final consumption
Multichannel distribution
Where a business uses more then one channel of distribution
Product
Anything that is capable of satisfying customer needs and wants
Product life cycle model
A theoretical model that describes the stages a product goes through over its life.
Used for: forecast future sales trends and help with market targeting and positioning
5 stages: Development, Introduction, Growth, Maturity, Decline/End
The Boston Matrix
A model used to analyze the strategic position of product and brand portfolios
4 Areas: Question marks, Stars, Dogs snd Cash cows.
Measured in market share and market growth
Market growth
The number of potential customers in the market growing or not
Market share
Does the product being sold have a low or high market share?
Marketing Mix
The combination of elements used by a business to enable it to meet the needs and expectations of a customer
What are the 7P´s?
Product, Price, Promotion, Place, People, Process, Physical
Market segmentation
Involves dividing the market into different segments that reflect different customer needs and wants
Elasticity
Measures the responsiveness of demand to a change in a relevant variable-such as price and income
Formula of Price elasticity (PED)
%Change in quantity demanded / %Change in price
Formula of elasticity of demand (IED)
%Change in quantity demanded / %Change in income
Price elasticity of demand
Measures the extent if which the quantity of a product demanded is affected by a change in price
Income elasticity of demand
Measures the extent to which the quantity of a product demanded is affected by a change in income
Extrapolation
Involves the use of trends established by historical data to make predictions about future values
The role of marketing
The process of identifying, predicting and satisfying customer needs profitably
