Marketing Flashcards
Market
A set of arrangements which allows buyers and sellers to communicate and trade in goods and services
Market share
The proportion of sales in a total market that a business or product enjoys
Marketing
Identifying customer needs and satisfying them profitably
Marketing Mix
The key elements in a firm’s marketing strategy
Commonly known as the 4 P’s - Product, Price, Promotion and Place
Market orientation
Where a business focuses on the needs of customers when developing products
Marketing strategies
A set of plans designed to achieve marketing objectives
Product orientation
Where a business focuses on the design and manufacture of the the product itself rather than the needs of customers
Market segment
Part of a whole market where a particular customer group has similar characteristics
Socio-economic groups
Division of people according to social class based on employment status
Competition based pricing
Pricing strategies based on the prices charged by rivals
Cost plus or cost based pricing
Adding a percentage( the mark up) to the cost of producing a product to get the price
Destroyer or predatory pricing
Setting a low price until rivals have gone out of business
Loss leader
A product sold below cost to draw in customers
Market orientated pricing
Pricing strategies based upon the conditions of the market
Mark up
The percentage added to costs which makes a profit for a business when setting the price
Price elasticity of demand
Measures the responsiveness of demand to a change in price
Price elastic demand
Where a price change will result in a significant change in demand
Price inelastic demand
Where a price change will result in a much smaller change in demand
Price Skimming
Setting a high price initially and the lowering it later
Above the line promotion
Placing adverts using the media
Advertising
Communication between a business and it’s customers where messages are placed in the media to encourage the purchase of products
Below the line promotion
Any promotion that does not involve using the media
Sponsorship
Making a financial contribution to an event in return for publicity
Agent or broker
An intermediary that brings together buyers and sellers
Direct selling
Where businesses sell their products directly to consumers
Distribution channel
The route taken by a product from the producer to the costumer
Retailer
A business which buys goods from manufacturers and wholesalers and sells them in small quantities to consumers
Wholesaler
A business which buys goods from manufacturares and sells them in smaller quantities to retailers
Boston Matrix
A 2 x 2 matrix which describes products according to the market share they enjoy and whether the market has any potential for growth
Brand names
The name of a product which consumers see as being from those of rivals
Extension strategies
Methods used to prolong the life of a product
Product life cycle
The level of sales at the different stages through which a product passes over time
Consumer panels
Groups of customers are asked for feedback about products over a set period
Market research
The collection, presentation and analysis of information relating to marketing and consumption of goods and services
Primary or field research
The gathering of new information that does not already exist
Sample
A small group of people which must represent a proportion of a total market when carrying out market research
Secondary or desk research
The collection of data that is already in existence.
