8 Flashcards
Brand extension
Where new products launched by a business can benefit from
the positive reputation associated with the business’s
existing brands.
Brand loyalty
Continuing to buy a particular product or buy from a
particular business even if new and better products are being
introduced by competitors.
Branding
The name, design, logo or symbol that distinguishes the
product of one provider from that of another.
Customer-led
approach
Where a provider finds out what people need or want and
then designs a product to satisfy this need
Customer retention
Activities undertaken to persuade existing customers to stay
with a business
Direct selling
Sales that are arranged directly between the customer and
the provider without the intervention of a financial adviser.
Loss leader
A product offered by a business at a price that is below what
it costs the business to produce it; the aim is to attract
customers, who then purchase other products on which the
business does earn a profit.
Market segments
Groups of customers sharing distinct features in terms of, for
example, age, income or lifestyle.
Marketing mix
The combination of factors that attracts and retains
customers, eg supplying the right product at the right price
and promoting it effectively. Sometimes summarised as the
4Ps or 7Ps.
Pareto principle
A principle which states that, in many situations, 80% of the
effects arise from 20% of the causes. Also known as the
80:20 rule.
Peer-to-peer (P2P)
lenders
Online marketplaces that enable people to lend to and
borrow from each other without using a traditional financial
institution such as a bank or building society
Price sensitivity
The degree to which the price of a product affects a
consumer’s decision to buy it.
Product
differentiation
The methods providers use to make one product different
from and more attractive than others that perform a similar
function.
Promotion
Paid-for marketing activities, including advertising. It includes
all activities that aim to communicate with people, inform
them of goods and services, and persuade them to buy.
Public relations (PR)
A specific aspect of promotion known as ‘below the line’
expenditure. It is advertising that is not paid for directly but
which keeps a business’s product in the public eye. It is the
part of promotion in which the entire message is implicit.
