business unit 3 vocabulary

Question 1

market share

Answer 1

the percentage of total market sales held by one brand or business

Question 2

mass market

Answer 2

where there is a very large number of sales of a produck

Question 3

niche market

Answer 3

a small, usually specialized, segment of a much larger market

Question 4

market segment

Answer 4

an identifiable sub- group of a whole market in which consumers have simian characteristics or preferences

Question 5

product orientated business

Answer 5

a business whose main focus of activity is on the product itself

Question 6

market orientated business

Answer 6

a business which carries out market research to find out consumer wants before a product is developed and produced

Question 7

marketing budget

Answer 7

a financial plan for the marketing of a product or product range for some specified period of time. it specifies how much money is available to the product or range, so that the marketing department know how much they may spend

Question 8

market research

Answer 8

the process of gathering, analyzing and interpreting information about a market

Question 9

primary research

Answer 9

the collation of original data via direct contact with potential or existing customer.

Question 10

secondary research

Answer 10

information that has already been collected and made available for use by others

Question 11

questionnaire

Answer 11

a set of question to be answered as a means of collecting data for market research

Question 12

sample

Answer 12

the group of people who are selected to respond to a market research exercise, such as a questionnaire

Question 13

random sample

Answer 13

when people are selected at random as a source of information for market research

Question 14

quota sample

Answer 14

when people are selected on the basis of certain characteristics (age, gender, income etc) as a source of information for market research

Question 15

focus group

Answer 15

a group of people who are representative of the target market

Question 16

marketing mix

Answer 16

a term which is used to describe all the activities which go into marketing a product or service. these activities are often summarized as the four Ps ( product, price, place, promotion)

Question 17

unique selling point USP

Answer 17

the special feature of a product that differentiates it from the products of competition

Question 18

brand name

Answer 18

a unique name of a profit that distinguishes it from other brands

Question 19

brand loyalty

Answer 19

when consumers keep buying the same brand again and again instead of choosing a competitors brand

Question 20

brans image

Answer 20

an image or identity given to a product which gives it a personality of its own and distinguishes it from its competitors brands

Question 21

packaging

Answer 21

the physical container or wrapping for a product, its also used for promotion and selling appeal

Question 22

product life cycle

Answer 22

describes the stages a product will pass through from its introduction, through its growth until it mature and then finally its decline

Question 23

cost plus pricing

Answer 23

the cost of manufacturing the product plus a profit mark up

Question 24

competitive pricing

Answer 24

when the product is prices in line with or just below competitors prices to try and capture more of the market

Question 25

penetration pricing

Answer 25

when the price is set lower than the competitors prices in order to be able to enter a new market

Question 26

price skimming

Answer 26

where a high price is set for a new product on the market

Question 27

promotional pricing

Answer 27

when a product is sold at a very low price for a short period of time

Question 28

price elasticity

Answer 28

a measure of the responsiveness of demand to a change in price

Question 29

information advertising

Answer 29

where the emphasis of advertising is to give full information about the product

Question 30

persuasive advertising

Answer 30

advertising or promotion which is trying to persuade the consumer that they really need the product and should buy it

Question 31

target audience

Answer 31

refers to the people who are potential buyers of a product or service

Question 32

sales promotion

Answer 32

incentives such as special offers or special deals aimed at consumers to achieve short term increases in sales

Question 33

distribution channel

Answer 33

that means by which a product is passed from the place of production to the customer or retailer

Question 34

agent

Answer 34

an independent person or business that is appointed to deal with the sales and distribution of a product or range of products

Question 35

E-commerce

Answer 35

the buying and selling of goods and services using computer systems linked to the internet

Question 36

marketing strategy

Answer 36

a plan to combine the four elements of the marketing mix for a product or service to achieve a particular marketing objective