marketing Flashcards
customer base def
the group of customers a business sells its products to
market
all customers and consumers who are interested in buying a product and have the financial resources to do so
customer loyalty
keep customers to make repeat purchases
target market def
indiviuals or organisations identified by a business as the customers or consumers of their products
customer def
an individual or business that bys goods and services from a business
consumer def
the final user of a product
consumer markets def
markets for goods and services bought by the final consumer
industrial markets def
markets for goods and services bought by other businesses to use in their production process
business environment
the combination of internal and external factors that influence the operations of a business
why does demand change
prices change consumer income changes population size and structure changes tastes and fashion changes advertising and promotional activities changes
free trade def
no barriers exist that might prevent trade between different countries
niche marketing def
developing producs for a small segment of the market
mass marketing def
selling the same product to the whole market
market segment def
a part of the whole market in which consumers have paticular characteristics
market segmentation def
dividing the whole market into segments by consumer characteristics and then targeting different products to each segment
geographic segmentation def
dividing consumers in the market by geographic area.
demographic segmentation def
dividing consumers in the market by factor such as age, gender, income, ethnic background and social class.
market research def
the process of collecting, recording and analysing data about the customers, competitors and market for a product.
unique selling point def
the special feature of a product that sets it apart from competitors products
market-orientated def
products are developed based on consumer demand as identified by market research
product orientated def
the firm decides what to produce and then tries to find buyers for the product.
primary research def
the collection of first hand data for the specific needs of the firm
secondary research def
the collection of data from second hand sources
commonly used second hand sources
internet government publications newspapers and magazines internal business records local library market research agencies
quantitative research
the collection of numerical data tha can be analaysed using statistical techniques
qualitative research
the collection of information about consumer buying behaviour and their opinions about products
what is a focus group
a group of consumers that are invited to discuss topics such as new products, packaging, brand names and advertisements
what is observation
when large firms secretly observe consumer behaviour (supermarkets)
what is a test market
limited quantity of a product is produced and sold in a carefully selected area of the market, which represents the entire market.
what are consumer surveys
interviews, postal surveys and online surveys to survey potential consumers.
sample def
a representative sample of the target market selected to take part in market research
how is qualitative research usually presented
ina writtenreport.
how is quantitative research usually presented
tables, charts, graphs and pictograms
marketing mix def
four marketing decisions needed for the effective marketing of the product.
four p’s def
the right product at the right price with the right promotion at the right place.
product def
the goods and services produced to satisfy a customer need or want
brand def
a name, image or symbol that distinguishes a product from a competitior’s product
brand image def
the general impresson of a product held by consumers
product life cycle def
the pattern of sales of a product from introduction to its withdrawl from the market
what are the four stages of the product life cycle
introduction
growth
maturity
decline
which stage is most profitable in the product life cycle
maturity
extension strategies def
marketing activities to extend the maturity stage of a product
give some extensions strategies
finding new markets
finding new uses
adapting the product or packaging to improve its appeal to consumers
increased advertising and other promotional activities
price def
the amount paid by the customer to the supplier when buying a good or service
product quality
the product meets the needs and expectations of customers
market skimming def
setting a high price for a new product thta is unique or very different from any other product on the market
penetration pricing def
setting a low price to attract customers to buy a new product
competitive pricing def
setting a price similar to that of competitors products which are already established in the market
price leadership def
smaller firms set their price based on the price set by the dominant firm in the industry
loss leader pricing def
setting the price of a small number of products at below cost to attract customers into the outlet in the hope that they will buy other products priced to earn profuit.
cost plus pricing def
setting price by adding a fixed amount to the cost of making or buying the product
demand def
quantity of goods and services consumers are willing and able to buy
price elasticity of demand
measures by how much demand (sales) for product changes when there is a change in its price
price inelastic demand def
the percentage change in demand (sales) is less than the percentage change in price
price elasetic demand def
the percentage change demand is greater than the percentage change in price
revenue def
the amount earned by a business from the sale of its products
channels of distribution def
how a product gets from the producer to the final consumer
wholesaler def
a busienss that buys products in bulk from producers and then sells them to retailers
retailer def
shops and other outlets that sell goods and services to the final consumer.
middlemen def
these are the intermediaries in the channels of distribution, for example, wholesalers and retailers
direct selling
the product is sold directly to the final consumer without eh need for any middlemen
how do you choose a channel of distribution
cost
nature of product
market
promotion def
marketing activites used to communicate with customers to inform and persuade them to buy a business’s products
advertising def
paid for communication with consumers which uses printed and visual media. the aim is to inform and persuade consumers to buy the product.
informative advertising def
information about the prodyct is communicated to consumers to creat product awareness and attract their interest
persuasive advertising def
communication with consumers aimed at getting them to buy a firm’s product rather than a competitor’s product
below the line promotion def
promotion that is not paid for - communication but uses incentives to encourage consumers to buy
sales promotion def
incentives used to encourage short term increases in sales or repeat purchases
personal selling def
sales staff communicate directly with the consumer to achieve a sale and form a long term relationship between teh firm and the consumer
direct mail def
aka mailshots, printed materials sent directly to the addresses of customers.
sponsorship def
payment by a business to have its name or products associated with a particular event
marketing budget def
the amount of money made available by a businesss for its marketing activities during a paticular period of time
ecommerce def
the use of the internet and other technologies used by businesses to market and sell goods and services to customers
threats of ecommerce to consumers
fraud
hacking
no personal service
returning items
give some channels of distribution
producer to consumer
producer to retailer to consumer
producer to wholesaler to retailer to consumer
producer to agent to wholesaler to retailer to consumer
marketing straetgy def
a plan to achieve the marketing objectives using a given level of resources
legal controls def
laws that control the activity of businesses
purpose of legal controls
protect consumers from faulty and dangerous goods
prevent businesses from using advertising to mislead consumers
protect consumers from being exploited in industries where there is little or no competition
barriers to trade def
usually taxes, quotas or bans that one country places on the goods of other countries to prevent or increase the cost of them entering that country
domestic market def
the market for goods and services in the business’s own country
problems with entering new foregin markets
differneces in language and culture economic differences social differences different legal controls lack of market knowledge
how else would a business overcome probelems when entering foreign markets
franchising
licensing
joint bentures
joint venture def
an agreement betweent two or more businesses to work together on a project
