Ch 16- Marketing Your Business Flashcards
What is marketing?
identifying consumer needs and producing the products and services that will satisfy those needs.
What is target market?
The customers that a product or service will be aimed at
What is marketing mix?
the combination of actions a company uses when selling a product or service
What is the USP?
A unique selling point is a feature of a product or service that makes it different from, and better than, other similar products
What are the 4 P’s of marketing?
Product
Price
Promotion
Place
What is product branding?
creating an identity for a product that clearly distinguishes it from competitors. It consists of a brand name and logo
What is a brand logo?
a distinctive visual image that will help the product stand out from competitors
What factors influence price?
⇒Cost of production and the need to make a profit
⇒Level of demand
⇒Competitors’ prices
⇒Stage in the product life cycle
⇒Government taxes e.g. VAT
What is mark-up (cost-plus pricing)?
adding a profit percentage to the direct costs of production of the item, to arrive at the selling price.
What is psychological pricing?
setting a price based on the expectations of the customers in the target market
What are channels of distribution?
the various routes that goods may follow to get from the producer to the consumer
What is channel 1? Give examples
Producer → Wholesaler → Retailer ⇒ Consumer
(known as ‘breaking bulk’) e.g. Duracell betteries
What are wholesalers?
businesses that buy goods in very large quantities from the producers and sell them in smaller quantities to retailers
What is channel 2? Give examples
Producer → Retailer ⇒ Consumer
e.g. Newspapers
What is channel 3? Give examples
Producer ⇒ Consumer
e.g. farmers market
What is promotion?
the communicating with customers in order to attract their attention to a product or service
e.g. advertising, in-store merchandising
What is advertising?
communicating with customers to inform, persuade or remind them about a product or service
What is advertising media?
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the communication channels available to a business for its advertising
What is in-store merchandising?
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using promotional displays in shops to attract attention to a product and increase sales
What are sales promotion?
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specific incentives offered to customers to attract their attention, increase sales and encourage customer loyalty
What is direct selling?
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contacting customers in person to generate sales
Give 3 examples of direct selling
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⇒ Face-to-face
⇒ Over the phone using telemarketing
⇒ using email or post
What is telemarketing?
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communicating with customers by telephone to generate sales and deal with customer queries and complaints
What are public relations? (PR)
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Communicating with the media using good news stories to create favourable publicity for a firm or its products
What is sponsorship?
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where a company pays money to have their name associated with a major event or a charitable cause
What does choosing a promotional method depend on?
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⇒ The target market
⇒ The cost of buying advertising (the advertising budget available)
