Marketing Flashcards
Marketing
The process of identifying, anticipating and satisfying the needs of customers in a mutually beneficial exchange process.
Market segmentation
Separating the marketing into groups of consumers with clearly identifiable needs and wants.
USP (Unique selling point / proposition)
A USP is a feature of a product that makes it distinctive and can usually add value.
Niche marketing
Niche marketing is where a business targets a smaller segment of a larger market, where customers have specific needs and wants.
Mass marketing
Mass marketing is where a business sells into the largest part of the market, where there are many similar products offered by competitors.
Market orientation
When marketing decision-making is based on customers’ needs.
Product orientation
When marketing decision-making is based on what the firm can product and hopes that it will fit with customer requirements.
Integrated
Marketing mix
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).
Market share
This measures a business’s sales as a percentage of the total market sales.
CALCULATION: Company sales/total market sales x 100
Barrier to Entry
This is something that makes entering a market more difficult for businesses, such as the need for specialist skills.
Competitive market
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.
Product portfolio analysis
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.
Product life cycle
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).
Extension strategy
A strategy used by a firm to prevent the sales of a product / service going in to decline.
Distribution channel
Describes how the ownership of a product moves from the producer to the consumer.