Marketing Flashcards
Marketing
Management task that links the business to the customer, identifying and meeting the needs of the customers profitably
Marketing objectives
Goals for marketing department to help the business achieve its overall objectives
Marketing strategy
Long-term plan established for achieving marketing objectives
Market orientation
An outward looking approach basing product decisions on customer demands, as established by market research
Product orientation
An inward looking approach that focuses on making products that can be made or have been made for a long time and then trying to sell them
Asset led marketin
Approach to Marketing the basis strategy on the firms existing strengths and assets instead of purely on what the customer wants
Societal marketing
This approach considers not only the demand of customers but the effects on all members of society involved in some ways when the firm meets these demands
Demand
Quantity of a product that consumers are willing And able to buy at a given price in a time period
Supply
Quantity of a product that firms are prepared to supply at a given price in a time period
Equilibrium price
The market price that equal supply and demand for a product
Market size
Total level of sales of all producers in a market
Market growth
The percentage change in the total size of a market over a period of time
Market share
Percentage change of sales in the total market sold by one business
Firms sales in a period
Total market sales in a period. X100
Direct competitor
Business that provides the same or very similar goods or service
Unique selling point – USP
Special feature of a product that differentiated from competitors products
Product differentiation
Making a product distinctive so that it stands out from competitors product in a consumers perception
Niche marketing
Identifying and exploiting a small segment of a large market or developing products to suit it
Mass marketing
Selling the same product to the whole market with no attempt to target groups within it
Market segment
A segment of a whole market in which consumers have similar characteristics
Market segmentation
Identifying different segments with in the market and targeting different products or services to them
Consumer profile
Qualified picture of consumers of a firms products, surely proportions of age groups, income levels, location, gender, social class
Market research
Process of collecting, recording, analysing data about consumers, competitors and the market
Primary research
Collecting First hand data that is directly related to references
Secondary research
Collection of data from secondhand sources
Qualitative research
Research into the in-depth motivation behind consumers Buying, behaviour/opinions
Quantitative research
Research that leads to numerical results that can be statistically analysed
Focus group
A group of people who ask about their attitude towards a product, service, advertisement, style of packaging
Sample
Group of people taking part in a market research survey selected to be representative of the overall target market
Random sampling
Every member of the total population has an equal chance of being selected
Systemic sampling
Every nth item in the target population is selected
Stratified sampling
Draws a sample From a specific subgroup what is segment of the population; uses random sampling to select appropriate number from each stratum
Quota sampling
When population has been stratified and the interviewer select an appropriate number of respondents
Cluster sampling
Using one number of a specific group to draw samples from not the whole population
Open Question
Invite a wide range of imaginative responses
Closed question
A limited number of preset answers are offered
Marketing mix
Four key decisions that must be taken in the effective marketing of a product
Customer relationship management
Using marketing Activities to establish a successful customer relations, So that existing customer loyalty can be maintained
Brand
And identifying symbol, name, image, trademark what distinguishes a product from its competitors
Intangible attributes of a product
Subjective opinions of customers about a product that cannot be measured or compared easily
Tangible attributes of a product
Measurable features of a product that can easily be compared with other products
Product
End result of the production process sold on the market to satisfy customer needs
Product positioning
Customers perception of a product/service as compared to its competitors
Product portfolio analysis
Analysing the range of existing products of a business to help allocate resources effectively between them
Product life cycle
Pattern of sales recorded by a product from launch to withdraw from the market -Main form of product portfolio analysis
Customer durable
Manufacture products that can be reused and is expected to have a reasonably long life
Extension strategy
Marketing plans to extend the maturity stage of the product before a brand-new one Is needed
Price elasticity of demand – PED
Measures the responsiveness of demand following a change in price
0 = perfectly inelastic: same amount is demanded no matter price change
1–0 = inelastic: percentage change in demand is less than percentage change in price
Unitary = unit elasticity: percentage change in demand equals percentage change in price
One – infinity = elastic demand: percentage change in demand is more than percentage change in price
Markup pricing
How do you fixed mark up for profit to the unit price of a product
Target pricing
Setting a new price that will give a required rate of return at a certain level of output/sales
Full cost pricing
Setting a price by calculating a unit cost for the product then adding a fixed profit margin
Contribution cost pricing
Setting price based on the variable cost of making a product in order to contribute towards fix costs and profits
Competition based pricing
Basing its price upon the process by its competitors
Dynamic pricing
Offering good at a certain price the changes according to the level of demand and customers ability to pay
Penetration pricing
Setting relatively low price often supported by strong promotion in order to achieve higher volume sales
Market skimming
Setting a high price for new products in firms - have a unique or highly differentiated product with low price elasticity of demand
Promotion
Use of advertising, sales promotion, personal selling, direct mail, et cetera inform consumers and persuade them to buy
Promotion mix
Combination of promotional techniques that a firm uses to sell a product
Above the line marketing
Form of promotion that is undertaken by a business By paying for communication with the consumers
Advertising
Paid for communication with consumers to inform and persuade
Below the line promotion
Promotion that is not directly paid for means of communication, but based on short-term incentives to purchase
Sales promotion
Incentives such a special offers/deals directed at consumers or retailers to achieve short-term sales and increase repeat purchases by consumers
Personal selling
A member of sales staff communicates with one consumer with the aim of selling the product and establishing a long-term relationship between company and consumer
Sponsorship
Payment by a company to the organisers of an event/team/individuals so that company name becomes associated with event/team/individual
Public relation
Delivered use of free publicity provided by newspapers TV and other media to communicate with and achieve understanding by the public
Branding
Strategy of differentiating products from those of competitors by creating an identifiable image into expectations about a product
Marketing/promotion budget
Financial amount allocated by a business for spending on marketing/promotion during a certain time period
Channel of distribution
Chain of intermediaries a product passes through from producer to final consumer
Online marketing
Advertising/marketing activities that use the Internet email and mobile communications to encourage direct sales via electronic commerce
E commerce
Find selling of goods/services by businesses and consumers through an electronic medium
Viral marketing
Use of social media sites or text messages to increase brand awareness/selling products
Integration marketing mix
Key marketing decisions compliment each other and work together to give consumers a consistent message about the product
Nonprice competition
Firms use fierce and competitive promotional campaigns to establish brand identity and dominance
