5. Marketing Flashcards
5.1 Key terms - exchange
An exchange occurs when someone gives up something in return for something else, e.g. a business exchanges a product for money.
5.1 Key terms - need
A need is something that needs to be fulfilled for us to survive.
5.1 Key terms - want
A want is what we would like to satisty our needs.
5.1 Key terms - customer
A customer is someone who buys a product from a business.
5.1 Key terms - consumer
A consumer is someone who uses goods and services produced by businesses.
5.2 Key terms - Sales volume
Sales volume measures the number of items sold.
5.2 Key terms - Sales value
Sales volume measures the number of items sold.
5.2 Key terms - Segmentation
Segmentation occurs when a market is divided into different groups of needs and wants.
5.3 Key terms - market research
Market research is the process of gathering, analysing and processing data relevant to
marketing decisions.
5.3 Key terms - market segment
A market segment is a group of buyers with similar needs within the overall market.
5.3 Key terms - primary market research
Primary market research uses data gathered for the first time.
5.3 Key terms - secondary market research
Secondary market research uses data that has been gathered already.
5.4 Key terms - marketing mix
The marketing mix refers to all the activities influencing whether or not a customer buys a product. The elements of the mix can be analysed using the four Ps: price, place, product and promotion.
5.5 Key terms - product portfolio
A product portfolio is the collection of products that a firm produces.
5.5 Key terms - boston matrix
The Boston Matrix is a way of analysing a product’s share and growth in their market.
5.5 Key terms - dog product
A dog product has a low market share in a low-growth market.
5.5 Key terms - cash cow product
A cash cow product has a high market share in a low-growth market.
5.5 Key terms - question mark product
A question mark product has a low market share in a fast-growth market.
5.5 Key terms - star product
A star product has a high market share in a fast-growth market.
5.5 Key terms - product life cycle
The product life cycle shows how the sales of a product may change over time.
5.5 Key terms - extension strategies
Extension strategies are attempts to maintain the sales of a product and prevent it from entering the decline stage of the product life cycle.
5.5 Key terms - price skimming
Price skimming is setting a high price for a product when it first enters the market.
5.5 Key terms - penetration pricing
Penetration pricing is launching a new product at a low price to achieve fast sales.
5.5 Key terms - competitive pricing
Competitive pricing is matching the prices that competitors charge.
5.5 Key terms - loss leader
A loss leader is a product sold at a loss in the hope that the customer will buy other items from the business where they make a profit.
5.5 Key terms - cost plus pricing
Cost plus pricing is where products are priced by covering the cost of it to the retailer and adding a percentage on top.
5.5 Key terms - sales promotions
Sales promotions are short-term incentives to encourage customers to buy.
5.5 Key terms - advertising
Advertising involves paid for communications.
5.5 Key terms - promotional mix
The promotional mix is the combination of promotional methods used by a business to communicate with its customers.
5.5 Key terms - distribution channel
The distribution channel describes how the ownership of a product passes from the producer to the final customer.
5.5 Key terms - wholesalers
Wholesalers break bulk; they buy in large quantities from a producer and sell to retailers.
5.5 Key terms - retailers
Retailers are shops that sell direct to the customer.
5.5 Key terms - e-commerce
E-commerce involves online trading.
5.5 Key terms - m-commerce
M-commerce involves online trading via a mobile phone.
5.5 Key terms - direct marketing
Direct marketing occurs when there is a direct link from the producer to the customer with no intermediaries.
5.5 Key terms - intermediary
An intermediary is a link in the distribution chain between the producer and the customer.
