Business: Chapter 3 Flashcards
Definition of Marketing
Identifying customer wants and satisfying them profitably.
Definition of Customer
A person, business or other organisation which buys goods or services from a business.
Definition of Customer Loyalty
When existing customers continually buy products from the same business.
Definition of Customer Relationships
Communicating with customers to encourage them to become loyal to the business and its product.
Definition of Market Share
The percentage of total market sales held by one brand or business.
Definition of Consumer
A person who buys goods or services for personal use, not to resell.
Definition of Mass Market
Where there is a very large number of sales or a product.
Definition of Niche Market
A small, usually specialised, segment of a much larger market.
Definition of Market Segment
An identifiable sub-group of a whole market in which consumers have similar characteristics of preferences.
Definition of Market Research
The process of grathering, analysing and interpreting information about a market.
Definition of Marketing Budget
A financial plan for the marketing of product or product range for some specified period of time. It specifies how much money is available to market the product or range, so that the Marketing Department knows how much to spend.
Definition of Product-oriented
Business whose main focus of activity is on the product itself.
Definition of Market-oriented
Business which carries out market research to find out consumer wants before a product is developed and produced.
Definition of Primary Research
The collection and collation of original data via direct contact with potential or existing customers.
*aka field research
Definition of Secondary Research
Using information that has already been collected and is available for use other.
*aka desk research
Definition of Questionnaire
A set of questions to be answered as a means of collecting data for market research.
Definition of Quota Samples
When people are selected on the basis of certain characteristics (such as age, gender or income) as a source of information for market research.
Definition of Online Surveys
Require a target sample to answer a series of questions over the Internet.
Definition of Interviews
Asking individuals a series of questions, often face-to-face or over the phone.
Definition of Focus Group
A group of people who are representative of the target market.
Definition of Sample
The group of people are selected to respond to a market research exercise, such as a questionnaire.
Definition of Marketing mix
A term used to describe all the activities which go into marketing a product or service. These activities are often summarised as the four P’s: product, price, place and promotion.
Definition of Brand Loyalty
When consumers keep buying the same brand again and again instead of choosing a competitor.
Definition of USP
The special feature of a product that distinguishes it from the products of competitors.
Definition of Brand Name
The unique name of a product that distinguishes it from other brands.
Definition of Brand Image
An image or identity given to a product which gives it a personality of its own and distinguishes it from its competitors’ brand.
Definition of Packaging
The physical contaier or wrapping for a product. It is also used for protection and selling appeal.
Definition of Product Life Cycle
The stages of a product passing through from introduction, through its growth until it is mature, and then finally its decline.
Definition of Extension Strategy
A way of keeping a product at the maturity stage of the life cycle and extending the cycle.
Stages of the PLC
Development, introduction, growth, maturity, saturation, decline
Definition of Cost-plus Pricing
The cost of manufacturing the product plus a profit mark up.
Definition of Competitive Pricing
When the product is priced in line with or just below the competitors’ prices to try to capture more of the market.
Definition of Price Skimming
Where a high price is set for a new product in the market.
Definition of Promotional Pricing
When a product is sold at a very low price for a short amount of time.
Definition of Penetration Pricing
When the price is set lower than the competitors’ prices in order to be able to enter a new market.
Definition of Dynamic Pricing
When businesses change product prices, usually when selling online, depending on the level of demand.
Definition of Price Elastic Demand
Where consumers are very sensitive to price changes.
Definition of Price Inelastic Demand
Where consumers are not sensitive to changes in price.
Definition of Distribution Channels
The means by which a product is passed from the place of production to the customer.
Definition of Promotion
Where marketing activities aim to raise customer awareness of a product or brand, generating sales and helping to create brand loyalty.
Definition of Agent
An independent person or business that is appointed to deal with the sales and distribution of a product or range of production.
Definition of Advertising
For communication paid for communication with potential customers about a product to encourage them to buy it.
Definition of Informative Advertising
Where the advertising or sales promotion is to give full information about the product.
Definition of Persuasive Advertising
Advertising or promotion which is trying to persuade the customer that they really need the product and should buy it.
Definition of Target Audience
Refers to people who are potential buyers of a product or service.
Definition of Sales Promotion
Incentives such as special offers or special deals aimed at customers to achieve short term increases in sales.
Definition of Marketing Budget
A financial plan for the marketing of a product or product range for a specified period of time.
Definition of Social Media Marketing
A form of internnet marketing that involves creating and sharing content on social media networks in order to achieve marketing and branding goals. It includes activities such as posting text and image updates, videos, and other content that achieves audience engagement as well as paid social media advertising.
Definition of Viral Marketing
When consumers are encouraged to share information online about the products of a business.
Definition of Marketing Strategy
A plann to combine the right combination of the four elements of the marketing mix for a product or service to achieve a particular marketing objective(s).
Definition of E-commerce
The ‘online’ buying and selling of goods annd services using computer systems linked to the internet and apps on mobile [cell] phones.
Definition of Multinational Business
Businesses with factories, production, or service operations in more than one country.
