Marketing Flashcards
Marketing
Finding out the needs of customers and demonstrating how a business fulfils those needs so that its sales increase
Market research
The collection of data on customer habits to help decision-making in marketing
Target market
A group of customers to whom a business aims to sell its products. This may be other businesses as well as consumers
Primary research
Data that is collected first hand, often in the form of questionnaires, interviews and focus groups. Sometimes referred to as ‘field’ research
Secondary research
The collection of data using research and information provided by others, such as magazines, journals and the internet. Often called desk research
Qualitative data
Data based on the opinions of those being asked
Quantitative data
Data collected that is based on facts or numbers; it is usually easier to analyse than qualitative data
Market segmentation
Splitting the market for a product or service into different parts of segments
Decline
When sales are falling as the product or service is seen by customers to be old and they switch to new products or services
Design
An important element in a number of different products, especially where style and technology work together
Growth
When sales are growing strongly as the new product or service becomes known
Innovation
The improvement of an original idea, which will often involve using new processes
Introduction
When a product or service is first on sale
Invention
The introduction of a totally new product or service
Maturity
When sales are at their highest level
Product life cycle
The life of a product: introduction, growth, maturity and decline
Competitor pricing
A price is set based on prices charged by competitors for a similar product
Cost-plus pricing
A pricing method that adds a percentage for profit to the total costs of making a product. This gives the selling price
Penetration pricing
A price is set that is lower than those of competitors. Often used by new businesses to break into the market. It is a short-term strategy only
Promotional pricing
Prices are reduced to give products a boost or to sell off old stock
Skimming
Where a new product is more advanced than that of its competitors, a price is set high as consumers are willing to pay higher prices to own the newest technology. Also referred to as ‘creaming’
Point of sale promotions
Sales offers available when purchasing a product. These include price reductions, competitions, free samples and loss leaders. Loss leaders are goods offered at a low price. Although the business makes a loss on these products, it is hoped that while customers are buying these products, they will be tempted to buy other more profitable goods so that overall the shop makes the profit it needs
Promotional advertising media
The ways in which a company can advertise its goods, such as social media, websites, print media, television and radio
Physical distribution
The distribution of a good or service using a physical presence such as a shop or office
