Marketing, competition and the customer Flashcards
Customer base
The group of customers a business sells its products to
Market
All customers and consumers who are interested in buying a product and have financial access to do so
Target market
Individuals or organisations identified by a business as the customers or consumers of its products
Customer
An individual or business that buys goods and services from a business
Consumer
The final user of a product
Consumer markets
Markets for goods and services bought by the final consumer
Industrial markets
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
Free trade
No barriers exist that might prevent trade between different countries
Niche marketing
Developing products for small segment of the market
Mass marketing
Selling the same product to the whole market
Market segment
A part of the whole market in which consumers have specific characteristics
Market segmentation
Dividing the whole market into segments by consumer characteritics 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
Psychographic segmentation
Dividing consumers in the market by lifestyles, personalities and attitudes
Market research
The process of collecting, recording and analysing data about the customers, competitors and market for a product
Unique selling point
The special feature of a product that set it apart from competitors’ products
Market-orientated
Products are developed based on consumer demand as identified by market research
Product-orientated
The firm decides what to produce and then tries to find buyers for the product
Primary research
The collection of first-hand data for the specific needs of the firm
Secondary research
The collection of data from second-hand sources
Quantitative research
The collection of numerical data that can be analysed using statistical techniques
Qualitative research
The collection of information about consumers’ buying behaviour and their opinions about products
Sample
A representative sample of the target market selected to take part in market research
Marketing mix
Four marketing decisions needed for the effective marketing of a product
Four Ps
The right product at the right price with the right promotion in the right place
Product
The goods and services produced to satisfy a customer need or want
Brand
A name, image or symbol that distinguishes a product from competitors’ products
Brand image
The general impression of a product held by consumer
Product life cycle
The pattern of sales of a product from introduction to its withdrawal from the market
Extension strategies
Marketing activities to extend the maturity stage of a product
Price
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
Setting a high price for a new product that is unique or very different from any other product on the market
Penetration pricing
Setting a low price to attract customers to buy a new product
Competitive pricing
Setting a price similar to that of competitors’ products which are already established in the market
Price leadership
Smaller firms set their price based on the price set by the dominant firm in the industry
Loss-leader pricing
Setting the price of a small number of products at below cost to attract cutomers into the outlet in the hope that they will buy other products priced to earn profit
Cost-plus pricing
Setting price by adding a fixed amount to the cost of making or buying the product
Demand
The quantity of goods and services consumers are willing and able to buy
Price elasticity of demand
Measures by how much demand (sales) for a product changes when there is a change in its price
Price inelastic demand
The percentage change in demand (sales) is less than the percentage change in price
Price elastic demand
The percentage change in demand is greater than the percentage change in price
Revenue
The amount earned by a business from the sale of its products
Channels of distribution
How a product gets from the producer to the final consumer
Wholesaler
A business that buys products in bulk from producers and then sells them to retailers
Retailer
Shops and other outlets that sells goods and services to the final consumer
Middleman
These are the intermediaries in the channels of distribution, for example wholesalers and retailers
Direct selling
The product is solds by the final consumer without need for any middlemen
Promotion
Marketing activities used to communicate with customers and potential customers to inform and persuade them to buy a business’s products
Advertising
Paid-for communication with consumers which uses printed and visual media. The aim is to inform and persuade customers to buy a product
Informative advertising
Information about the product communicated to consumers to create product awareness and attract their interest
Persuasive advertising
Information about the product communicated to consumers to create product awareness and attract their interest
Below-the-line promotion
Promotion that is not paid-for communication but uses incentives to encourage consumers to buy
Sales promotion
Incentives used to encourage short-term increases in sales or repeat purchases
Personal selling
Sales staff communicate directly with the consumer to achieve a sale and form a long-term relationship between firm and consumer
Direct mail
Also known as ‘mailshots’; printed materials which are sent directly to the addresses of customers
Sponsorship
Payment by a business to have its name or products associated with a particular event
Marketing budget
The amount of money made available by a business for its marketing activities during a particular period of time
E-commerce
Use of internet and other technologies by businesses to market and sell goods and services to customers
Marketing strategy
A plan to achieve the marketing objectives using a given level of resources
Legal controls
Laws that control the activity of businesses
Barriers to trade
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
The market for goods and services in the business’s own country
Joint venture
An agreement between two or more business to work together on a project
