Key Terms Flashcards
1
Q
Brand
A
A symbol, logo or design that is recognisable and distinguishes a product from competitors
2
Q
Competition
A
The rivalry among sellers trying to achieve goals such as increasing profits, market share and sales volume
3
Q
Competitive market
A
When there are many rivals selling similar products
4
Q
Competitor
A
A rival business operating in the same market offering similar goods or services
5
Q
Direct competition
A
Businesses produce similar products that appeal to the same group of customers
6
Q
Dynamic market
A
A market that is subject to rapid/continuous change
7
Q
Indirect competition
A
Different businesses make or sell products that are not in direct competition but compete for the same customer experience
8
Q
Innovation
A
The creation, development and implementation of a new product, process or service
9
Q
Market
A
Where buyers and sellers interact
10
Q
Market growth
A
An increase in demand/sales for a particular product/service
11
Q
Market share
A
The % of the total market a business has in terms of volume or value
12
Q
Market size
A
The total amount of sales/customers in a market measure by value/volume
13
Q
Mass market
A
A large un segmented market where mass appeal products are on sale
14
Q
Niche market
A
It is a smaller segment of a larger market where consumers have specific needs and wants
15
Q
Online retailing
A
Selling goods and services on the internet
16
Q
Product innovation
A
The development/creation of products not previously available
17
Q
Sales volume
A
The quantity of a good or service sold within a period of time. Calculation: Sales revenue/Selling price
18
Q
Uncertainty
A
The inability to predict future event and outcomes. It is caused by unexpected often external factors outside the business’s control, even though sometimes these can be predictable.
19
Q
Biased questions
A
Where the questions do not produce findings that give a true reflection of the views of the target audience on the product or service
20
Q
Consumer behaviour
A
How consumers make decisions about how they choose and use products or services
21
Q
Databases
A
An organised collection of data stored electronically with instant access, searching and sorting facilities
22
Q
Face-to-face survey
A
A research method used where the interviewer communicates directly with the respondent using a questionnaire
23
Q
Focus group
A
A group of people who participate in a discussion as part of market research to give feedback about a product or service
24
Q
Government data
A
Government publications that a business can use such as the census of the population
25
Interview bias
Where the opinion of the interviewer interferes with the judgements of the interviewee
26
Market orientation
When a business’s products/services are based around the needs and wants of the customer
27
Market reports
A document that contains information, state, research and facts on a chosen field
28
Market research
Gathering, presenting and analysing information about products/customers
29
Market segmentation
Dividing a whole market into particular customer groups that have similar characteristics
30
Market segments
An identifiable group of individuals/a part of the market where consumers share one or more characteristic or need
31
Observations
Where market researchers watch the behaviour of customers
32
Primary market research
Obtaining data first hand by the business to match the specific needs of the business
33
Product orientation
When a business prioritises a products design quality or performance rather than meeting customer preferences to guide production and marketing decisions
34
Qualitative research
Market research collected relating to the opinions and beliefs of consumers. Data not presented numerically.
35
Quantitative research
Numerical information gathered and can be presented and analysed using graphs, charts, tables etc
36
Respondent bias
When respondents respond inaccurately to a question for some reason
37
Sample
A small group of people who must represent a proportion of a total market when carrying out market research
38
Secondary market research
Data collected by another business or organisation but used by the business in question
39
Segmentation
Dividing the market into groups of people with similar attributes or common characteristics
40
Social networking
A platform such as Facebook, X and YouTube which can be used to market a businesses products/services
41
Survey
A method of (primary) research used to collect information
42
Test marketing
Trialling the product in a small area or to a limited number of users to assess the suitability of a product
43
Trade publications
Specialist magazines that look at current trends in the business world
44
Added value
The increase in value that a business creates when producing a product/service. The difference between the price the customer pays and the total cost of inputs needed to create a product.
45
Competitive advantage
A feature of a business and/or its products that enable it to compete effectively with rival producers/products
46
Differentiation
Making products or services different or distinct from competing products/creating a USP
47
Market mapping
A form of market positioning. It is the use of a 2-dimensional diagram that plots products or services in a market using two key variables. It is used to spot a gap in the market.
48
Market positioning
An effort to influence consumer perception of a brand or product, relative to the perception of competing brands or products
49
Product differentiation
The act of distinguishing a product/service from competitors to make it more attractive to a particular target market
50
Complementary goods
Products consumed/used together, so they are purchased together E.g. printer and printer ink
51
Consumer income
The money earned/received from work/investments
52
Demand
The quantity of goods/services that a consumer is willing to buy at a given price and at a given time
53
Demographics
The structure of the population such as age, gender and geographical distribution
54
External shocks
Factors beyond the control of a business
55
Seasonality
When demand rises or falls at particular times of the year according to seasonal factors
56
Substitutes
Goods that can be bought as an alternative to others, but perform the same function E.g. petrol car and electric car
57
Government subsidies
A payment given to producers, usually to encourage production of a certain good
58
Indirect taxes
Taxes imposed by the government on spending e.g. VAT and Excise duties. Responsibility for payment lies with the business.
59
Supply
The amount that producers are willing/able to produce at a given price/over a given period of time
60
Equilibrium price
The price where supply and demand are equal. Also known as market clearing price.
61
Non price factors
Factors other than price e.g. Change in consumer incomes, advertising and seasonality
62
Shortage in markets
Where demand exceeds supply
63
Surplus in markets
Where supply exceeds demand
64
Luxury
Goods that consumers like to buy if they can afford them e.g. air travel and fashion items
65
Necessity
Basic goods that consumers need to buy e.g. food, electricity and water
66
Price elastic
Quantity demand is responsive to a change in price
67
Price elasticity of demand (PED)
Measures the responsiveness of quantity demanded to a change in price. Always negative due to laws of demand.
68
Price Inelastic
Quantity demanded for the product is less responsive proportionately to a change in price
69
Income elasticity of demand (YED)
Measures the responsiveness of changes in quantity demanded to changes in consumer income
70
Inferior good
When incomes increase there is a decrease in quantity demanded e.g. budget goods
71
Marketing mix
A plan for using the right blend of product, price, promotion, and place in order to maximise sales
72
Social trends
Changing patterns in consumer behaviour reflected in changing demands e.g. increased use of social media/being environmentally friendly
73
Aesthetics
Relates to the appearance of a product
74
Cost (design mix)
When the business focusses on being economically viable, therefore they aim to minimise costs
75
Design for recylcling
Producing products using materials that have been discarded as waste and recycled
76
Design for reuse
When a product is designed to allow for disassembly at the end of its life and the re-use of the materials
77
Design for waste minimisation
Reducing the quantity of resources that are discarded in the production process
78
Design mix
The combination of elements, (function, aesthetics, cost) that a business considers when creating a product
79
Ethical sourcing
When a business buys materials that are produced with fair working conditions/pay and minimum impact on the environment
80
Function
Relates to the quality and reliability of a product
81
Re Branding
A marketing strategy in which a new name, term, symbol, design or combination is created for an established brand with the intention of developing a new, differentiated identity in the minds of consumers, investors, and/or competitors
82
Resource depletion
The using up of natural resources
83
Advertising
A paid form of communication, used by a business to raise customer awareness of its products, services and brands, to persuade purchases to be made
84
Customer loyalty
Customers favouring a business over competitors when making a purchase/favour it over competitors in the same market
85
Digital communications
The electronic transfer of data
86
Direct marketing
Where a business mails out leaflets or letters to households
87
Emotional branding
The creation of brands that may appeal to customers’ emotional nature, rather than their logical side
88
Manufacture/corporate branding
Brands created by the producers of goods and services e.g. Kellogg’s cornflakes (bear the producers name)
89
Own brand
Products that are manufactured for wholesalers or retailers by other businesses e.g. Tesco Beans
90
Personal selling
Direct communication between a salesperson and the customer
91
Premium price
Charging a higher price than competitors because of customer loyalty that has been built up over a period of time
92
Product branding/Generic branding
Products that only contain the name of the product category rather than the company or product name e.g. Carrots
93
Promotion
A way of making customers aware of the brand/business and persuading them to buy products e.g advertising/discounts
94
Public relations
An organisation’s attempt to communicate with interested parties, usually through unpaid media such as press conferences
95
Sales promotions
Methods of promoting products in the short term to boost sales
96
Social media
Websites and applications that enable users to participate in social networking
97
Sponsorship
A form of promotion in which funds are provided for a sporting, cultural, or social event in return for prominent display of the business’s brand name or image
98
USP (unique selling point)
A feature that differentiates a product from its competitors
99
Viral marketing
Encouraging customers to share information/adverts through existing social media platforms e.g. Facebook
100
Competitive pricing
When a business sets a price similar to competitors selling similar/rival products
101
Cost plus pricing
A cost-based method for setting the prices of goods and services and is calculated by adding a mark-up percentage to the cost of the product
102
Penetration pricing
Setting a low price initially and accepting limited short-term profits/losses in order to build market share before switching to a more profitable and higher price
103
Predatory pricing
Setting a low-price forcing rivals out of the market. This is illegal in the UK but difficult to prove.
104
Price comparison websites
A website that compares the price of a particular product or service in different stores or from different businesses
105
Price skimming
Setting a high price at the launch of a product, to gain the money back from R&D and to take advantage of those wanting to be the first people to purchase
106
Pricing strategy
The approach a business takes to setting the price of its product/service e.g. penetration, price skimming, cost plus, competitive, predatory, psychological
107
Psychological pricing
Tactics that are designed to appeal to a customer’s emotional response to prices
108
Channels of distribution
Methods used by businesses to get their products from manufacture to consumer. They can include intermediaries such as wholesalers and retailers.
109
Distribution
Getting products to the right place for customers and at the right time
110
Distribution channels
The methods by which a product gets from the manufacturer to the consumer
111
Distribution strategy
A plan to get a product or service to the customer
112
Four stage distribution channel
Manufacturer/producer to wholesaler to retailer, then consumer. Examples include groceries and confectionery.
113
Online distribution/E-commerce
The use of electronic systems to sell goods and services
114
Place
Where the product can be purchased and is also the process of making a product or service available to the consumer
115
Product
A tangible item offered for sale
116
Service
The non-physical, intangible parts of our economy, as opposed to goods, which we can touch
117
Three stage distribution channel
Manufacturer/producer to retailer, then consumer. Examples include electrical goods and cars.
118
Two stage distribution channel
A direct marketing approach with no intermediary levels e.g. Manufacturer/producer to consumer
119
Boston matrix
A method used to analyse the product portfolio of a business that contains stars, Cash cows, question marks and dogs
120
Business to business (B2B)
When a business promotes the sale of products/services to other businesses for use in their operations
121
Business to customer (B2C)
Where a company targets to sell its products to individual customers
122
Consumer loyalty
A preference for a product or brand based on experience and/or an emotional attachment, which inclines buyers to repeat purchases and away from rivals
123
Extension strategy
A method used to lengthen the life/sales of a product/service
124
Marketing objective
A goal the business aims to achieve through its marketing activities
125
Marketing strategy
The methods used/plan/way chosen to achieve marketing objectives
126
Portfolio analysis
When business considers each of its products in the context of its market position
127
Product life cycle
The stages that a product goes through from introduction to decline
128
Product portfolio
The collection/range/ list of items/products produced/sold/offered by a business
