Dictionary Marketing

Question 1

Marketing

Answer 1

The process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchanges that satisfy individual and organisational objectives. A more simplified definition is that marketing is a total system of interacting activities designed to plan, promote and distribute products to present and potential customers.

Question 2

Production Approach

Answer 2

Focused businesses on the production of goods and services

Question 3

Sales Approach

Answer 3

Emphasised selling because of increased competition

Question 4

Marketing Approach

Answer 4

Focuses on finding out what customers want – through market research – and then satisfying that need

Question 5

Discretionary Income

Answer 5

Refers to disposable income that is available for spending and saving after an individual has purchased the basic necessities of food, clothing and shelter

Question 6

Relationship marketing

Answer 6

The development of long-term and cost-effective relationships with individual customers

Question 7

Industrial market

Answer 7

Includes industries and businesses that purchase products to use in the production of other products or in their daily operations

Question 8

Intermediate market

Answer 8

Consists of wholesalers and retailers who purchase finished products and resell them to make a profit

Question 9

Bait and switch advertising

Answer 9

Involves advertising a few products at reduced and, therefore, enticing prices to attract customers

Question 10

Price discrimination

Answer 10

The setting of different prices for a product in separate markets

Question 11

Puffery

Answer 11

Is exaggerated praise or flattery, especially when used for promotional purposes that no reasonable person would take as factual

Question 12

Demographic Segmentation

Answer 12

Is the process of dividing the total market according to particular features of a population, including the size of the population, age, sex, income, cultural background and family size

Question 13

Geographic Segmentation

Answer 13

Is the process of dividing the total market according to geographic locations

Question 14

Psychographic Segmentation

Answer 14

Is the process of dividing the total market according to personality characteristics, motives, opinions, socioeconomic group and lifestyles

Question 15

Behavioural Segmentation

Answer 15

The process of dividing the total market according to the customers’ relationship to the product

Question 16

Products

Answer 16

Are goods or services that can be offered in an exchange for the purpose of satisfying a need or want

Question 17

Price

Answer 17

Refers to the amount of money a customer is prepared to offer in exchange for a product

Question 18

Market-based pricing

Answer 18

Is a method of setting prices according to the interaction between the levels of supply and demand – whatever the market is prepared to pay

Question 19

Competition based pricing

Answer 19

Is where the price covers costs (cost of raw materials and the cost of operating the business) and is comparable to the competitor’s price

Question 20

Bundle pricing

Answer 20

Is where customers gain a ‘package’ of goods and services in addition to the tangible good they purchased

Question 21

Price Skimming

Answer 21

Occurs when a business charges the highest possible price for the product during the introduction stage of its lifecycle

Question 22

Price Penetration

Answer 22

Occurs when a business charges the lowest price possible for a product or service so as to achieve a large market share

Question 23

Loss Leader

Answer 23

Is a product sold at or below cost price

Question 24

Price Points

Answer 24

(or price lining) is selling products only at certain predetermined prices

Question 25

Promotion

Answer 25

Describes the methods used by a business to inform, persuade and remind a target market about its products

Question 26

Personal Selling

Answer 26

Involves the activities of a sales representative directed to a customer in an attempt to make a sale

Question 27

Relationship Marketing

Answer 27

Is the development of long-term, cost-effective and strong relationships with individual customers

Question 28

Place/Distribution

Answer 28

Are activities that make the products available to customers when and where they want to purchase them

Question 29

People

Answer 29

The people element refers to the quality of interaction between the customer and those within the business who will deliver the service

Question 30

Processes

Answer 30

Refers to the flow of activities that a business will follow in its delivery of a service

Question 31

Physical Evidence

Answer 31

Refers to the environment in which the service will be delivered. It also includes the location of where the service is being provided and the materials needed to carry out the service such as signage, brochures, business cards, business logo and website

Question 32

Global branding

Answer 32

The worldwide use of a name, term, symbol or logo to identify the seller’s products

Question 33

Global Pricing

Answer 33

Is how businesses coordinate their pricing policy across different countries

Question 34

Tariff

Answer 34

Tax on an imported good