ch1 definitions Flashcards
What is a market?
A market is what connects product providers with buyers. It is where the two groups come together and exchange goods and services for money.
What is a product-oriented business?
The business take into consideration product quality and price prior to searching for markets or creating new ones. The products are mostly basic commodities or highly advanced technology. Potential customers are attracted through advertising.
What is a market-oriented business?
The business carries out the necessary research to understand the commercial preferences of consumers which are then implemented into creating a product based off of the consumers’ demands. Usually, it is more successful than a product-oriented business.
What is marketing?
Marketing is the process that links a business to its customers by identifying their preferences and predicting their possible consumption habits in an attempt to increase profit margins.
What is a marketing objective?
It is a short-term objectives that are reviewed regularly by marketers.
What is a marketing strategy?
It outlines how the company intends to achieve its objectives by focusing on elements of the marketing mix and prioritizing them according to the target market and consumer behaviour. It’s arranged after deciding on the marketing objective.
What is a marketing plan?
It is a written document that provides details about the necessary actions needed to achieve one or more marketing objectives.
What is a marketing mix?
The marketing mix is a set of marketing tools that work together to achieve a company’s most important, immediate, and long-term objectives. It is based on four elements: product, price, place, and promotion.
What is market share?
The market share of a business refers to its total sales expressed as a percentage of the market in which it operates. It is calculated by dividing the company’s sales by the total market sales.
What is a mass market?
A mass market sells a standard product in bulk at a relatively low price. This allows the enterprise to benefit from economies of scale.
What is a niche market?
A niche market tends to be a smaller section of a mass market that promotes more specialized products. It targets a small number of buyers and is characterized by a lower volume of sales and relatively higher prices, since it cannot benefit from economies of large-scale production.
What is market segmentation?
It is the process of splitting the market into particular groups of people with similar characteristics and product needs. A market can be segmented in several ways like age, gender, location, and more.
