Marketing Flashcards

1
Q

Marketing

A

The process of identifying, anticipating and satisfying the needs of customers in a mutually beneficial exchange process.

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2
Q

Market segmentation

A

Separating the marketing into groups of consumers with clearly identifiable needs and wants.

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3
Q

USP (Unique selling point / proposition)

A

A USP is a feature of a product that makes it distinctive and can usually add value.

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4
Q

Niche marketing

A

Niche marketing is where a business targets a smaller segment of a larger market, where customers have specific needs and wants.

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5
Q

Mass marketing

A

Mass marketing is where a business sells into the largest part of the market, where there are many similar products offered by competitors.

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6
Q

Market orientation

A

When marketing decision-making is based on customers’ needs.

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7
Q

Product orientation

A

When marketing decision-making is based on what the firm can product and hopes that it will fit with customer requirements.

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8
Q

Integrated

Marketing mix

A

The combination of the elements that work together / complement each other to influence a customer’s decision whether or not to buy a product. (These include product, price, place, promotion).

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9
Q

Market share

A

This measures a business’s sales as a percentage of the total market sales.
CALCULATION: Company sales/total market sales x 100

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10
Q

Barrier to Entry

A

This is something that makes entering a market more difficult for businesses, such as the need for specialist skills.

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11
Q

Competitive market

A

A competitive market is one in which a large numbers of producers compete with each other to satisfy the wants and needs of a large number of consumers. In a competitive market no single producer, or group of producers, and no single consumer, or group of consumers, can dictate how the market operates.

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12
Q

Product portfolio analysis

A

Product portfolio analysis examines the market position of a firm’s products. The Boston Matrix can be used to analyse a firms range of products and services.

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13
Q

Product life cycle

A

The product life cycle traces the sales of a product over its life. The typical path for a product can be divided into five stages (development, introduction, growth, maturity, decline).

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14
Q

Extension strategy

A

A strategy used by a firm to prevent the sales of a product / service going in to decline.

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15
Q

Distribution channel

A

Describes how the ownership of a product moves from the producer to the consumer.

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16
Q

Zero distribution

channel

A

This is when the good or services passes directly from producer to the consumer without any intermediaries.

17
Q

Promotional mix

A

The combination of ways in which a business can communicate with its customers (Public relation, advertising, personal selling, direct mail and sales promotion.)

18
Q

Wholesaler

A

A wholesaler buys products in bulk from producers and sells them onto retailers.

19
Q

Pricing tactics

A

Pricing tactics are short-term policies aimed at achieving a particular objective (loss leaders, psychological pricing, price discrimination).

20
Q

Price skimming

A

Price skimming uses a high price to enter the market. People are usually willing to pay the high price to try the new product. Once sales have been exhausted, the price is dropped to attract new customers.

21
Q

Price penetration

A

Price penetration uses a low price to enter the market and gain market share.

22
Q

Competitive pricing

A

Competitive pricing is a strategy whereby firms set their price at the same level as their competitors or deliberately undercut their rivals. E.g John Lewis – “never knowingly undersold”

23
Q

Price taking

A

Price taking us a strategy whereby firms accept the price that dominates the market.

24
Q

Loss leaders

A

A pricing tactic whereby a product is sold at a loss to generate business for other profitable products sold by the firm.

25
Q

Psychological pricing

A

A pricing tactic whereby products are sold at a price intended to create a particular impression of the product. (e.g £10 product labelled as £9.99)

26
Q

Price elastic

A

Demand is elastic if the % change in price leads to a greater % change in quantity demanded. (Greater than 1)

27
Q

Price elasticity of demand

A

Measures the responsiveness of quantity demanded to a change in price. (% change in QD / % change in price)

28
Q

Distribution channels

A

A distribution channel moves a product from production to consumption

29
Q

Place

A

Place (or distribution) refers to the way in which a product or service is distributed from the producer to the final consumer.

30
Q

Advertising

A

Advertising is a paid for means of communicating with customers.

31
Q

Promotion

A

The ways in which a business communicates with existing and potential customers to encourage demand.

32
Q

Sales Promotion

A

Tactical point of sale material or other incentives designed to stimulate purchases, often for the short-term.

33
Q

Direct Marketing

A

Promotional material directed through mail, email or telephone to individual households or businesses.

34
Q

Personal Selling

A

Promotion or person to person basis – promotion using two-way communications.

35
Q

Price inelastic

A

Demand is inelastic if the % change in price leads to a smaller % change in quantity demanded. (Less than 1)

36
Q

Competitiveness

A

The ability of a business to deliver better value to customers than competitors
- value could be same product lower price or high quality product etc (other USP)