DNT Key Terminology Flashcards
Competitive advantage
The features of a business/product that places it in a better sales position than other competitors.
ACCC
Australian Competition and Consumer Commission. Deals with complaints about a range of business practices, including advertising and price setting.
Demand
Willingness of consumers to buy goods; consumer interest in a product.
Distribution
Moving a product from its place of manufacture to consumers. Involves both transport and sales outlets.
Market environment
The wider factors or pressures that affect the commercial environment within which a business will make marketing decisions e.g. economic, social, political etc.
Market research
Extensive research into the needs, tastes and behaviour of consumers.
Marketing program
A ‘whole business’ approach to marketing, including long-term and short-term plans and the complete range of products offered by the business.
Marketing strategy
The plan used by a business to plan, promote and sell a product successful.
Market-orientated
Focused on what the consumer wants.
Marketplace potential
A calculation of which and how many people in the general market might become potential customers.
Product life cycle
A cycle that explains the selling life of a product or range of products from product launch to the eventual removal of the product from the market.
INTRODUCTION
- product launch
- high cost
- low profit
- marketing strategy: expanding market
- objective: product adoption
- customers: innovators and risk takers
- profits: non-existent to negative
- competition: little or none
GROWTH
- reputation, competition and demand rising rapidly
- brand loyalties developing
- marketing strategy: establishing a marketing position and defending it
- objectives: increase sales and market share
- customers: people eager to try a new product
- profits: growing rapidly
- competition: growing in strength and numbers
MATURITY
- demand levels off and competitors established
- marketing strategy: maintaining competitive position
- objectives: cash flow and profit
- customers: people who continue to use the product and those who shop around
- profits: at or need peak
- competition: stronger but stable
DECLINE
- marketing strategy: drop out if there is no market, redesign or redefine
- objectives: residual profit
- customers: loyal and conservative
- profits: much reduced
- competition: declining
Standards Australia
An organisation that provides guidelines and regulations to ensure minimum standards of product quality.
Supply
Process of organising the availability of goods or services for sale.
Target group
A group of people which, for marketing, share:
- similar ages
- tastes
- available money
- educational or social background
They are the most likely customers of a particular product and marketing strategies will be moulded to their needs, tastes and interests.
The market
General term for all potential customers.
