Definitions 1.1 Flashcards

1
Q

Marketing mix

A

The plan for getting the right blend of product, price, promotion and place

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2
Q

Marketing objectives

A

the targets the marketing department must achieve, such as increasing sales by 15% within 12 months

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3
Q

Market segmentation

A

dividing a market up by customers’ age, gender or income to find areas that are under-served

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4
Q

Marketing strategy

A

the medium-to-long term plan for meeting the marketing objectives, delivered through the marketing mix

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5
Q

Economies of scale

A

factors that cause cost per unit to fall when a firm operates at a higher level of production

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6
Q

Franchise

A

a business that sells the rights to the use of its name and trading methods to local businesses

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7
Q

Generic brands

A

brands that are so well known that customers say the brand when they mean the product - for example, ‘I’ll hoover the floor’

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8
Q

Product differentiation

A

the extent to which customers perceive your brand as being different from others

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9
Q

Bias

A

a factor that causes research finding to be unrepresentative of the whole population

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10
Q

Primary research

A

finding out information first hand

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11
Q

Secondary research

A

finding out information that has already been gathered

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12
Q

Sample size

A

the number of people interviews; this should be large enough to give confidence that the findings are representative of the whole population

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13
Q

Market map

A

a grid plotting where each existing brand sits on scales based on two important features of a market

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14
Q

Price elasticity

A

a measurement of the extent to which a products demand changes when the price is changed

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15
Q

Unique selling point

A

a consumer benefit that no rival can match, perhaps because it is protected by a strong patent

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16
Q

Complementary goods

A

these are bought in conjunction with each other

17
Q

Inferior goods

A

goods for which sales fall when people are better off, but rise when consumers are struggling financially

18
Q

Luxury goods

A

goods for which sales rise rapidly when people are better off, but may fall rapidly in hard times

19
Q

Normal goods

A

goods for which sales move in line with changes in consumer incomes

20
Q

Seasonal variation

A

change in the value of a variable, e.g. sales, in relation to the seasons

21
Q

Substitutes

A

products or services in competition with each other, so customers will substitute one for the other

22
Q

Supply curve

A

a line showing the quantity of goods firms want to supply at different price levels (the higher the price, the more enthusiastic the supply)

23
Q

Demand curve

A

a line showing the demand for a product at different prices (the higher the price, the lower the demand)

24
Q

Market price

A

the price of a commodity that has been established by the market - that is, where supply equals demand

25
External constraints
something outside the firm's control that can prevent it achieving its objectives
26
Predatory pricing
pricing low with the deliberate intention of driving a competitor out of a business
27
Price-elastic
a product with demand that is highly priced sensitive, so price elasticity is above 1
28
Price-inelastic
a product with demand that is not very price sensitive, so price elasticity is below 1
29
Negative income elasticity
a product for which sales fall when people are better off (but rise when people are worse off)
30
Positive income elasticity
a product for which sales rise when people are better off (but fall in recessions)