Section 4 - Marketing Flashcards
This section focuses on identifying and satisfying customer needs in a changing and competitive international environment.
Market
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 4P’s (Product, Price, Promotion and Place.)
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 customers.
Market segment
Part of a 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 is designed to meet the needs of customers. Often called the 4P’s that 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 to 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 consumer.
Retailer
A business which buys goods from manufacturers and wholesalers and sells them in small quantities to consumers.
Wholesaler
A business which buys goods from manufacturers and sells them in small 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.
- Find new markets for the product
- Modifying the product
- Develop the product range
- Change the appearance of packaging
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.
