Definations - Unit 3 Flashcards
Marketing
Identifying customer wants and satisfying
them profitably
Customer
A customer is a person, business or other
organisation which buys goods or services from a
business
Customer loyalty
Customer loyalty is when existing customers
continually buy products from the same business
Customer relationships
Customer relationships is communicating with
customers to encourage them to become loyal to the
business and its products
Market share
Market share is the percentage of total market sales
held by one brand or business
Consumer
Consumer buys goods or services for personal
services- not to re-sell
Mass market
Mass market is where there is a large number of sales
of a product
Niche market
Niche market is a small, usually specialised, segment
of a much larger market
Market segment
Market segment is an identifiable sub-group of a
whole market in which consumers have similar
characteristics or preferences
Market research
Market research is the process of gathering, analyzing
and interpreting information about a market
Product orientated
Product-orientated business is one whose main focus
of activity is on the product itself
Market orientated
Market-orientated business is one which carries out
market research to find out consumer wants before a
product is developed and produced
Marketing budget
Marketing budget is a financial plan for the marketing
of a product or product range for some specific
period of time. It specifies how much money is
available to market the product or range, so that the
Marketing department may know how much it may
spend
Primary research
Primary research is the collection and collation of
original data via direct contact with potential or
existing customers
Secondary research
Secondary research uses information that has already
been collected and is available for use by others
Questionnaire
A questionnaire is a set of questions to be answered
as a means of collecting data for market research
Online surveys
Online surveys require the target sample to answer a
series of questions over the internet
Interviews
Interviews involve asking individuals a series of
questions, often face-to-face or over the phone
Focus group
A focus group is a group of people who are
representative of the target market
Sample
A sample is the group of people who are selected to
respond to a market research exercise, such as a
questionnaire
Random sample
A random sample is when people are selected at
random as a source of information for market
research
Quota sample
A quota sample is when people are selected on the
basis of certain characteristics (such as age, gender or
income) as a source of information for market
research
Marketing mix
The marketing mix is 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 and promotion
USP
The USP is the special feature of a product that
differentiates it from the products of competitors
Brand name
The brand name is the unique name of a product that
distinguishes it from other brands
Brand loyalty
Brand loyalty is when consumers keep buying the
same brand again and again instead of choosing a
competitor’s brand
Brand image
Brand image is an image or identity given to a product
which gives it a personality of its own and
distinguishes it from its competitors’ brands
Packaging
Packaging is the physical container or wrapping for a
product. It is also used for promotion and selling
appeal
Product life cycle
The product life cycle describes the stages a product
will pass through from its introduction, through its
growth until it is mature, and then finally its decline
Extension strategy
Extension strategy is a way of keeping a product at
the maturity stage of the life cycle and extending the
cycle
Cost plus pricing
Cost-plus pricing is the cost of manufacturing the
product plus a profit mark-up
Competitive pricing
Competitive pricing is when the product is priced in
line with or just below competitors’ prices to try to
capture more of the market
Penetration pricing
Penetration pricing is when the price is set lower than
the competitors’ prices in order to be able to enter a
new market
Price skimming
Price skimming is where a high price is set for a new
product on the market
Promotional pricing
Promotional pricing is when a product is sold at a very
low price for a short period of time
Dynamic pricing
Dynamic pricing is when businesses change product
prices, usually when selling online, depending on the
level of demand
Price elastic demand
Price elastic demand is where consumers are very
sensitive to changes in price
Price inelastic demand
Price inelastic demand is where consumers are not
sensitive to changes in price
Distribution channel
A distribution channel is the means by which a
product is passed from the place of production to the
consumer
Agent
An agent is an independent person or business that is
appointed to deal with the sales and distribution of a
product or a range of products
Promotion
Promotion is where marketing activities aim to raise
customer awareness, of a product or a brand,
generating sales and helping to create brand loyalty
Advertising
Advertising means paying for communication with
potential customers about a product to encourage
them to buy it
Informative advertising
informative advertising is where the emphasis of
advertising or sales promotion is to give full
information about the product
Persuasive advertising
Persuasive advertising is advertising or promotion
which is trying to persuade the consumer that they
really need the product and should buy it
Target audience
Target audience refers to people who are potential
buyers of a product or a service
Sales promotion
Sales promotions are incentives such as special offers
aimed at consumers to achieve short-term increase in
sales
Marketing budget
Marketing budget is a financial plan for the marketing
of a product or a product range for a specified period
of time
Social media marketing
Social media marketing is a form of internet
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
Viral marketing
Viral marketing is when consumers are encouraged to
share information online about the products of a
business
E-commerce
E-commerce is the ‘online’ buying and selling of goods
and services using computer systems linked to the
internet and apps on mobile (cell) phones
Marketing strategy
A marketing strategy is a plan to combine the right
combination of the four elements of the marketing mix for a product or a service to achieve a particular
marketing objective(s)
