Section 4 – Marketing... Flashcards
Markets.
A set of arrangements, which allows buyers and sellers to communicate and trade in goods and services.
Market Share.
The proportion of sales in a total market that a business or product enjoys.
Marketing.
Identifying customer needs and satisfying them profitably.
Marketing Mix.
The key elements in a firm’s marketing strategy, commonly known as the 4Ps (Product, Place, Price and Promotion).
Market Orientation.
Where a business focuses on the needs of consumers when developing products.
Marketing Strategies.
A set of plans designed to achieve marketing objectives.
Product Orientation.
Where a business focuses on the design and manufacture of the product itself rather than the needs of consumers.
Market Segment.
Part of the whole market where a particular customer group has similar characteristics.
Socio-Economic Groups.
Division of people according to social class based on employment status.
Marketing Mix.
The elements of a firm’s marketing that are designed to meet the needs of customers. Often called the 4Ps, they include Product, Price, Promotion and Place.
Competition-Based Pricing.
Pricing strategies based on the prices charged by rivals.
Cost Plus or Cost-Based Pricing.
Adding a percentage (the mark-up) to the costs of producing a product to get the price.
Destroyer or Predatory Pricing.
Setting a low price until rivals have gone out of business.
Loss Leader.
A product sold below cost of draw in customers.
Market Orientated Pricing.
Pricing strategies based upon the conditions in the market.
Mark-Up.
The percentage added to costs, which makes a profit for a business when setting the price.
Penetration Pricing.
Setting a low price to start with in order to get established in the market. Price may be raised once established.
Price Elasticity of Demand.
Measures the responsiveness of demand to a change in price.
Price Elastic Demand.
Where a price change will result in a significant change in demand.
Price Inelastic Demand.
Where a price change will result in a much smaller change in demand.
Skimming or Creaming.
Setting a high price initially and then lowering it later.
Above-The-Line Promotion
Placing adverts using the media.
Advertising.
Communication between a business and its customers where messages are placed in the media to encourage the purchase of products.
Below-The-Line Promotion.
Any promotion that does not involve using the media.
Sponsorship.
Making a financial contribution to an event in return for publicity.
Agent or Broker.
An intermediary that brings together buyers and sellers.
Direct Selling.
Where businesses sell their products directly to consumers.
Distribution Channel.
The route taken by a product from the producer to the customer.
Retailer.
A business, which buys goods from manufactures and wholesalers and sells them in small quantities to consumers.
Wholesaler.
A business, which buys goods from manufacturers and sells them in smaller quantities to retailers.
Boston Matrix.
A 2 x 2 matrix, which describes products according to the market share they enjoy and whether the market has any potential for growth.
Brand Names.
The name of a product which consumers see as being different from those of rivals.
Extension Strategies.
Methods used to prolong the life of a product.
Product Life Cycle.
The level of sales at the different stages through which a product passes over time.
Consumer Panels.
Groups of customers are asked for feedback about products over a set period.
Market Research.
The collection, presentation and analysis of information relating to the marketing and consumption of goods and services.
Primary or Field Research.
The gathering of ‘new’ information, which does not already exist.
Sample.
A small group of people, which must represent a proportion of a total market when carrying out market research.
Secondary or Desk Research.
The collection of data that is already in existence.
