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Business A Level > Glossary Unit 3 > Flashcards

Glossary Unit 3 Flashcards

1
Q

Boston Matrix

A

A method of analyzing brands in a firm’s product portfolio in terms of market share and market growth. Brands are classified as cash cows, dogs, question marks and stars

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2
Q

Brand

A

The name of a particular product (or company) conjures up a positive image that differentiates the product from other similar products in the mind of the consumer. E.g. Levi jeans are the original and toughest. Branding means developing certain reputations in consumers’ minds

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3
Q

brand family

A

A range of similar products all selling under the same product brand name

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4
Q

brand Loyalty

A

Customers tend to repeat purchase a product regularly which is likely to make demand price inelastic

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5
Q

Business to business Marketing

A

A firms targets its sales on other firms

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6
Q

business to customer marketing

A

Firms targets its sales on households

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7
Q

cash cow

A

a brand that has a high market share of a mature market which is not growing fast

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8
Q

confidence intervals

A

is the range of values that are likely given a set confidence level

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9
Q

confidence levels

A

is the probability that the research findings are correct. This is expressed as a percent

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10
Q

Correlation

A

is a statistical technique used to establish the strength of a relationship between two sets of values

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11
Q

Customisation

A

involves producing a unique good to cater for one individual’s requirements

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12
Q

demographic market segmentation

A

Markets or customers are targeted on the basis of their age, gender or family makeup.

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13
Q

digital marketing

A

involves anticipating and satisfying consumer wants using technology; specifically social media, use of search engine marketing and digital display adverts

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14
Q

direct selling

A

Offering for sale Communication with the consumer offering a sale via letter, e-mail or telephone. Junk mail is often direct selling

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15
Q

distribution channels

A

Ways of getting the products to where the customer can buy them.

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16
Q

Dog

A

goods that have a low market share of a mature market which is not growing fast

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17
Q

e-commerce

A

is the buying and selling of goods and services through the use of electronic media

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18
Q

Elastic

A

responsive. Usually in the context that a change in price will cause a greater percentage change in quantity. In this case, a drop in price will raise revenue and a rise in price cut revenue. Demand is price elastic when there are many alternative products

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19
Q

extension strategy

A

Attempts to raise sales when products are reaching the of their product life cycle and have been declining

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20
Q

extrapolation

A

involves using previous patterns of numerical data to estimate future values

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21
Q

Income Elasticity of demand

A

measures the responsiveness on consumer demand to changes in income. It shows whether goods are normal or inferior.

Income elasticity of demand =
% change in quantity demanded /
% change in income

If income elasticity of demand is positive then goods are normal, if negative they are inferior.

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22
Q

Industrial Good

A

are goods bought for use in business processes

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23
Q

Inelastic

A

unresponsive. Usually in the context that a change in price will cause a smaller percentage change in quantity. In this case a drop in price will cut revenue and a rise in price raise revenue. Demand is price inelastic when there are few alternative products

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24
Q

inferior good

A

is a product for which demand falls as income rises. It is often of lower quality than its competitors

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25
Q

innovation

A

introduction of new ideas in business. Product innovation means launching an item never seen before. Process innovation means a novel method of production has been initiated

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26
Q

loss leader

A

a product sold below cost with the intention of generating other profitable sales

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27
Q

market growth

A

The percentage change in the volume or value of sales of all the
brands in the product category

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28
Q

Market mapping

A

Using a graph to plot existing products in terms of various criteria. It can identify various market segments and gaps in the market

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29
Q

Market positioning

A

refers to the sector of the market the firm is targeting

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30
Q

market segmentation

A

involves dividing the market up into groups of potential customers, each with different characteristics. If the good can be tailored to the specific demands of a group of people their valuation of it will be higher than the standard version, hence they are likely to buy the new product

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31
Q

Market share

A

The percentage of total market sales accounted for by one firm.

Market share =
(One firm’s sales of a specific product / Total market sales of the specific product) x 100

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32
Q

market size

A

The volume or value of sales of a product type

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33
Q

price skimming

A

Selling at a high price, but low level of sales and targeting richer consumers. Profit is made by achieving high profit margin

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34
Q

marketing

A

Management process of identifying, anticipating and satisfying consumer requirements profitably. Marketing means giving consumers what they want

35
Q

marketing decision making

A

The use of market research and intuition to determine the marketing mix and strategy of the business

36
Q

marketing mix

A

How the main elements of the firms marketing strategy are combined. This includes decisions about PRICE, PRODUCT, PROMOTION, PLACEMENT, PROCESS, PEOPLE AND PHYSICAL ENVIRONMENT. Decisions about one of the P’s will have implications for all the rest and should convey the same message for a well-integrated marketing mix

37
Q

marketing objectives

A

Any aim that focus on satisfying the consumer and boosting sales

38
Q

marketing plan

A

is a set of proposed marketing actions to be undertaken at specified times with the aim of helping the business achieve its marketing objectives. A marketing plan should enable the firm to gain a competitive advantage and deliver a USP and how this benefits specific groups of consumers.

39
Q

mass marketing

A

produces a standard product, designed to appeal to a large section of the population

40
Q

merchandising

A

Ensuring the products are displayed in an attractive and prominent manner. This ensures a point of sale advertisement

41
Q

multichannel distribution

A

describes the case where businesses use more than one channel of distribution

42
Q

negative correlation

A

occurs when an increase in the value of x is associated with a decrease in the value of y (or vice versa.) Perfectly negative correlation will have a value of -1

43
Q

new product development (NPD)

A

A firm identify, develop and market a novel or improved good or service

44
Q

niche marketing

A

targeting a small specialised part of the overall market

45
Q

normal good

A

is a product for which demand rises as income increases

46
Q

penetration pricing

A

Setting at a low price to try to gain a high market share and brand recognition. This is likely to be a short-run tactic

47
Q

people element of the marketing mix

A

The sales personnel or service providers for the product and the impression they give.

48
Q

persuasive advertising

A

paid for communication that tries to convince consumers to buy the product through emotions and images rather than facts

49
Q

physical environment of the marketing mix

A

ses in value, the value of y also tends to increase (or a fall in the value of x will be associated with a fall in the value of y) In these cases the value of the correlation coefficient will be positive. Perfectly positively correlated variables have a value of +1

50
Q

predatory pricing

A

Anti-competitive practice of setting price low enough to drive weaker competitors out of the business

51
Q

price elasticity of demand

A

a measure of the extent to which demand for a good reacts to a change in price.
Price elasticity of demand = % change in quantity demanded /
% change in price

52
Q

price leader

A

A brand that is in such a powerful position in the market that it can heavily influence the selling price. Other firms may set their prices in a similar range

53
Q

price skimming

A

Charging a high price to gain a high profit margin although limiting sales to high income consumers

54
Q

pricing strategy

A

Long term goal regarding pricing

55
Q

pricing tactic

A

Temporary approach to pricing designed to deal with a short term threat or opportunity

56
Q

primary marketing research

A

The collection of information first-hand. This data did not previously exist and is collected by FIELD RESEARCH

57
Q

problem child

A

goods or services with a low market share of a fast growing market

58
Q

process element of the marketing mix

A

The practical aspects involved in buying the product

59
Q

product development

A

Marketing new or modified products to existing customers

60
Q

product life cycle

A

The phases which most products go through measured by sales from first introduction to the market, growth, maturity and eventual decline

61
Q

product portfolio

A

the range of products that a firm produces

62
Q

product portfolio analysis

A

the study of a range of products with a view to decide whether new products should be added to the range or old ones discontinued. It utilizes product life cycle and the Boston Matrix

63
Q

promotion

A

Attempts to gain sales by drawing attention to a firm or its products

64
Q

promotional mix

A

Co-ordination of different methods of promotion such as branding and Public Relations to achieve marketing targets

65
Q

psychological pricing

A

A pricing tactic charging just below a round figure to give the impression of value for money

e.g. charging £4.99 instead of £5

66
Q

public relations

A

Obtaining free favourable publicity via reports in independent media

67
Q

qualitative analysis

A

examines non-numerical data to draw conclusions about a market. It can be subjective and open to opinion e.g. examining the quality of a rival’s management or new product

68
Q

qualitative research

A

In depth investigations into reasons for consumer attitudes or behaviour

69
Q

quantitative analysis

A

examines statistical data to draw conclusions about the market. This is objective and quantifiable

70
Q

quantitative research

A

Research using pre set questions given to a large enough sample of people to provide statistically valid data

71
Q

repeat sales

A

when customers stay loyal to the brand and buy it again

72
Q

sales forecasting

A

a prediction of the level of sales revenue for individual products or the whole organisation

73
Q

sales value

A

The revenue gained from sales of a product p x q

74
Q

sales volume

A

the quantity of an item sold

75
Q

sampling

A

Choosing a representative group to survey out of the whole population to find out the characteristics of the whole population

76
Q

secondary market research

A

The use of information that has already been collected. This second hand data is collected by DESK RESEARCH

77
Q

shopping product

A

These items are purchased fairly often and typically reasonably expensive. Consumers are likely to spend some time gaining information about the product, comparing models and brands as they are not totally familiar with the item

78
Q

star

A

goods or services with a high market share of a fast-growing market

79
Q

strongly correlated data

A

One variable is closely linked to another so a change in one is connected to a change in the other

80
Q

target market

A

the type of customer (market segment) that a firm’s product or
service is aimed at

81
Q

test market

A

is the introduction of a product to a certain geographical area, in order to assess its likely success, or evaluate the effectiveness of marketing methods

82
Q

trend

A

underlying pattern of change within a set of data

83
Q

wholesalers

A

Organisations that buy large quantities from suppliers and sell on in smaller volumes. This can reduce delivery times and avoid the need to hold so much stock

84
Q

word of mouth communication

A

Favourable endorsement of your brand to other customers. This is free advertising and often effective but hard to achieve

Business A Level (6 decks)

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