Section 3 - Marketing Flashcards
Definitions
Marketing
A management task that links the business to the customer by identifying and meeting the needs of customers profitability - it does this by getting the right product at the right price to the right place at the right time
Marketing objectives
The goals set for the marketing department to help the business achieve its overall objectives
Marketing strategy
Long-term plan established for achieving marketing objectives
Market orientation
An outward looking approach basing product decisions on customer demand, as established by market research
Product orientation
An inward looking approach that focuses on marketing products that can be made or have been made for a long time and then trying to sell them
Asset-led marketing
An approach to marketing that bases strategy on the firm’s existing strengths and assets instead of of Purely on what the customer wants
Societal marketing
This approach considers not only the demands of consumers but the effects on all members of the public involved in some way when firms meet these demands
Demand
The quantity of a product that consumers are willing and able to buy at a given price in a time period
supply
The quantity of a product that firms are prepared to supply at a given price in a time period
equilibrium price
The market price that equates supply and demand for a product
Market size
The total level of sales of all producers within a market
market growth
The percentage change in a total size of a market over period of time
direct competitor
Businesses that provide the same or very similar goods or services
USP unique selling point (Proposition)
The special feature of a product that differentiates it from its competitors products
Market differentiation
Making a product distinctive so that it stands out from competitors products in Consumer perception
Niche marketing
Identifying and exploiting a small segment of larger market by developing products to suit it
mass marketing
Selling the same product to the whole Market with no attempt to target groups within it
market segment
A subgroup of a home market in which consumers have similar characteristics
Market segmentation
Identifying different segments within a market and targeting different products or services to them
consumer profile
a quantified picture of consumers of a firms product showing, proportions of age groups, income levels, location, gender and social class
market research
This is a process of collecting recording and analysing data about customer, competitors and the market
primary research
The collection of first hand data that is directly related to a firms needs
Secondary research
Collection of data from second-hand sources
Qualitative research
Research into the in-depth motivations behind consumers buying behaviour and opinions
Quantitative research
Resets that leads to numerical results that can be statistically analysed
Focus group
A group people who are asked about the attitude towards a product, service, advertisement or new style Packaging
Sample
The group of people taking part in the market research survey selected to representative of the overall target market
Random sampling
Every member of the target population has an equal chance of being selected
Systematic sampling
Every nth item in the target population is selected
Market share
The percentage of sales in the total market sold by one business. This is calculated by the following formula:
(Firms sale in time period/total market sales in time period times)×100
Stratfield sampling
This draws a sample from a specified subgroup or segments of the population and uses random sampling to select an appropriate number for each Stratum
Quota sampling
When the population has been stratified and the interviewer selects appropriate number of respondents from each stratum
Cluster sampling
Using one or a number of specific group suit or samples from a non selecting from and not selecting from the whole population
Open question
Those that invite a wide-ranging or imaginative response - the result will be difficult to collate and present numerically
Closed questions
Questions to which and limited number of preset answers is offered
Mode
The value that occurs most frequently in a set of data
Arithmetic mean
Calculated by Totaling all the results and dividing by the number of results
Median
The value of the middle item when data has been ordered and ranked. It divides the data to show two equal parts
Range
The difference between the highest and lowest value
Inter-quartile range
The range of the middle 50% of the data
marketing mix
The four key decisions that must be taken in the effective marketing of a product
Customer relationship management (CRM)
Using marketing activities to establish successful customer relationships to the existing customers loyalty can be maintained
brand
An identifying symbol, name, image or trademark that distinguishes a product from its competitors
Intangible attributes of a product
Subjective opinions of customers about a product that cannot be measured or compared easily
Tangible attributes of a product
Measurable features of a product that can easily be compared with other products
Product
The end result of a production process sold on the market to satisfy customers needs
product positioning
The customers perception of the product or service as compared to its competitors
Product portfolio analysis
Analysing the range of existing products of a business to help allocate resources effectively between them
Product portfolio analysis
Analysing the range of existing products of a business to help allocate resources effectively between them
product life cycle
The pattern of sales recorded by product from lunch to withdraw from the market and is one of the main forms of product portfolio analyst
customer durable
Manufactured product that can be reused and a is expected to have a reasonably long life such as, a car or a washing machine
Extension strategies
These are marketing plans to extend the maturity stage of product before a brand new one is needed
Price elasticity of demand
Measures the responsiveness of the demand following a change in price
Markup pricing
Adding a fixed markup for profit to the unit price of a product
Target pricing
Setting a price that will give a required rate of return at a certain level of output
Full cost pricing
Setting a price by calculating a unit cost for the product and then adding a fixed profit margin.
Contribution cost pricing
Setting prices is based on a variable cost of making a product in order to make contribution towards fixed cost and profit
Competition based pricing
A thermal base it’s price upon the price set by its competitors
Dynamic pricing
Offering goods at a price that changes according to the level of demand and the customers ability to pay
Penetration pricing
Set in a relatively low price orphan supported by strong promotion in order to achieve a high volume of sales
Market skimming
Setting a high price for a new product when a firm has a unique or highly differentiated product with low price elasticity of demand
Promotion
The use of advertising, sale promotions, personal selling, direct mail, trade fairs, sponsorship and public relations to inform consumers and persuade them to buy
promotion mix
The combination of promotional techniques that a firm uses to sell product
Above-the-line cremation
A form of a nation that is undertaken by a business but paying for communication with consumers
advertising
Pay for communication with consumers to inform and persuade edgy TV and cinema advertising
advertising
Pay for communication with consumers to inform and persuade edgy TV and cinema advertising
Below the line promotion
Permission that is not a directly paid for means of communication but based on short-term incentives to purchase
Below the line promotion
Permission that is not a directly paid for means of communication but based on short-term incentives to purchase
Sales promotion
Incentives such as special offers or special deals direct at consumers or italicized Chiefs for term sales increases and repeat purchases by consumers
personal selling
a member of the sales staff communicate with one consumer with the aim of selling the product and establishing a long term relationship between the company and consumer
sponsorship
Payment by company to the organisers of an event or team so that company’s name becomes associated with the event team or individual
public relations
The deliberate use of free publicity provided by newspapers TVs and other media to communicate with and achieve understanding by the public
Branding
The Strategy of differentiating products from those of competitors by creating identifiable image and clear expectations about a product
marketing or promotion budgeting
The financial amount made available by a business for spending on marketing when a certain period of time
Channel of distribution
This refers to the chain of intermediaries a product passes through from producer to find a consumer
internet marketing
Refers to advertising and marketing activities that use Internet email and mobile communications to encourage direct sales by electronic commerce
E-commerce
The buying and selling of goods and services by businesses and consumers through electronic medium
Viral marketing
The use of social media sites or text messages to increase brand awareness or sell products
Integrated marketing mix
The key marketing decisions complement each other and work together to give customers a consistent message about the product
