Section 3 Marketing Flashcards
MARKETING
Identifying customer wants and satisfying them profitably
CUSTOMER
A person, business or other organization which buys goods or services from a business
CUSTOMER LOYALTY
When existing customers continually buy products from the same business
CUSTOMER RELATIONSHIPS
Communicating with customers to encourage them to become loyal to the business and its products
MARKET SHARE
The percentage of total market sales held by one brand or business
CONSUMER
A person who buys goods or services for personal use - not to re-sell
MASS MARKET
This is where there is a very large number of sales of a product
NICHE MARKET
A small usually specialized segment of a much larger market
MARKET SEGMENT
An identifiable sub-group of a whole market in which consumers have similar characteristics or preferences
MARKET RESEARCH
The process of gathering, analyzing, and interpreting information about a market
PRODUCT-ORIENTATED BUSINESS
A business is whose main focus of activity is on the product itself
MARKET-ORIENTATED BUSINESS
A business is one which carries out market research to find out consumer wants before a product is developed and produced
MARKETING BUDGET
A financial plan for the marketing of a product or product range for some specified period of time
PRIMARY RESEARCH
The collection and collation of original data via direct contact with potential or existing customers
SECONDARY RESEARCH
Uses information that has already been collected and is available for use by others
QUESTIONNAIRE
A set of questions to be answered as a means of collecting data for market research
ONLINE SURVEYS
Requires the target sample to answer a series of questions over the internet
INTERVIEWS
Asking individuals a series of questions, often face-to-face, or over the phone
FOCUS GROUP
A group of people who are representative of the target market
SAMPLE
The group of people who are selected at random as a source of information for market research
RANDOM SAMPLE
When people are selected at random as a source of information for market research
QUOTA SAMPLE
When people are selected on the basis of certain characteristics (such as age, gender, or income) for market research
MARKETING MIX
A term used to describe all the activities which go into marketing a product or service. These activities are often summarized as the four Ps - product, price, place, and promotion
USP (UNIQUE SELLING POINT)
The special feature of a product that differentiates it from the products of competitors
BRAND NAME
The unique name of a product that distinguishes it from other brands
BRAND LOYALTY
When consumers keep buying the same brand again and again instead of choosing a competitor’s brand
BRAND IMAGE
An image or identity given to a product which gives it a personality of its own and distinguishes it from its competitors’ brands
PACKAGING
The physical container or wrapping for a product. It is also used for promotion and selling appeal
PRODUCT LIFE CYCLE
Describes the stages a product will pass through from its introduction, through its growth until it is mature, and then finally its decline
EXTENSION STRATEGY
A way of keeping a product at the maturity stage of the life cycle and extending the cycle
COST-PLUS PRICING
The cost of manufacturing the product plus a profit mark-up
COMPETITIVE PRICING
When the product is priced in line with competitors’ prices to try to capture more of the market
PENETRATION PRICING
When the price is set lower than the competitors’ prices in order to be able to enter a new market
PRICE SKIMMING
Where a high price is set for a new product on the market
PROMOTIONAL PRICING
When a product is sold at a very low price for a short period of time
DYNAMIC PRICING
When businesses change product prices, usually when selling online, depending on the level of demand
DISTRIBUTION CHANNEL
The means by which a product is passed from the place of production to the customer
AGENT
An independent person or business that is appointed to deal with the sales and distribution of a product or range of products
PROMOTION
Where marketing activities aim to raise customer awareness of a product or brand, generating sales and helping to create brand loyalty
ADVERTISING
A payment towards communication with potential customers about a product to encouraging them to buy it
INFORMATIVE ADVERTISING
Where the emphasis of advertising or sales promotion is to give full information about the product
PERSUASIVE ADVERTISING
Advertising or promotion which is trying to persuade the consumer that they really need the product and should buy it
TARGET AUDIENCE
People who are potential buyers of a product or service
SALES PROMOTIONS
Incentives such as special offers or special deals aimed at consumers to achieve short-term increase in sales
SOCIAL MEDIA MARKETING
A form of internet marketing that involves creating and sharing content on social media networks in order to achieve marketing and branding goals
VIRAL MARKETING
When consumers are encouraged to share information online about the products of a business
E-COMMERCE
The online buying and selling of goods and services using computer systems linked to the internet and apps on mobile cellphones
MARKETING STRATEGY
A plan to combine the right combination of the four elements of the marketing mix for a product or service to achieve particular marketing objectives
