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.
Formula: Total product or business sales / total sales in the whole market
Marketing
Identifying customer needs and satisfying them profitably.
Marketing mix
The key elements in a firm’s marketing strategy, commonly known as 4Ps - product, price, promotion and place.
Market orientation
where a business focuses on the needs of consumers when developing products.
Marketing strategies
A set of plans designed to achieve marketing objectives. For example, raise the price.
Product orientation
Where a business focuses on the design and manufacture of the product itself rather than the needs of customers.
Market segment
Part of a whole market where a particular customer group has similar characteristics. E.g. age groups.
Socio-economic groups
Division of people according to social class based on employment status. high social classes always have more incomes to consume.
Pricing strategies based on the prices charged by rivals.
Competition-based pricing
Cost plus
Adding a percentage to the costs of producing a product to get the price.
Destroyer(predatory pricing)
Setting a low price until rivals have gone out of business.
Loss leader
A product sold below cost to draw in customers.
The percentage added to costs which makes a profit for a business when setting the price.
Mark-up
Penetration pricing
Setting a low price to start with in order to get established in the market. Price may be raised once established.
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.
E.g. fuels.
Skimming(creaming)
Setting a high price initially and then lowering it later.
Boston matrix
A 2x2 matrix which describes products according to the market share they enjoy and whether the market has any potential for growth.
E.g. A star product
Brand names
The name of a product which consumes see as being different from those of rivals. A well known brand brings more customers.
Extension strategies
Methods used to prolong the life of a product, such as giving a product new packaging.
Product life cycle
The level of sales at the different stages through which a product passes over time. During maturity businesses made the most profits.
Consumer panels
Groups of customers are asked for feedback about products over a set period. The group must be representative of the whole population and be prepared to answer detailed questions.
What is the other name for customer panels?
Focus groups.
Primary research(field research)
The gathering of new information which does no already exist. For instance, questionnaires.
Secondary research(desk research)
The collection of data they is already in existence. Like online researching.
