Marketing Flashcards
Target market
Individuals identified as the consumers of their products
Free trade
No barriers exist that might prevent trade between different countries
Niche marketing
Developing products for a small segment of the market
Mass marketing
Selling the same product to the whole market
Market segmentation
Dividing the whole market into segments by consumer characteristics and then targeting different products to each segment
Geographic segmentation
Dividing consumers in the market by geographic area
Demographic segmentation
Dividing consumers in the market by factors such as age, gender, income, ethnic background and social class
Market research
Collecting data about consumers to develop a product that fulfills their needs and wants
USP
What sets the product apart from competitors products
Market oriented
Products are based on consumer demand
Product oriented
The firm decides what to produce and then finds buyers for the product
Four P’s
The right product at the right price with the right promotion in the right place
Product life cycle
The pattern of sales of a product, which is divided into four main stages:
Introduction (sales are low)
Growth (sales are increasing
Maturity stage (sales plateau)
Decline stage (sales are falling)
Extension strategies
Marketing activities to extend the maturity stage of a product (e.g finding new markets for their product)
Market skimming
Setting a high price for a new product that is unique from other products on the market
Penetration pricing
Setting a low price to attract customers
Competitive pricing
Setting a price similar to that of competitors products
Cost plus pricing
Setting price by adding a fixed amount to the cost of making the product
Price elasticity of demand
Measures how much demand changes when the price of a product changes
Channels of distribution
How a product gets from the producer to the final consumer
Benefit of e commerce for business
Increased market size
Threat of e commerce for business
Unfamiliarity with product
Benefit of e commerce to consumer
Convenient
Threat of e commerce for consumers
Fraud
