Theme 1: Marketing and people Flashcards
Definitions
market
where buyers and sellers interact
market share
how the overall market is split between competitors in terms of value or volume of sales
niche marketing
where a business targets a smaller segment of a larger market with specific customer needs and wants
mass marketing
where a business sells into the largest part of the market with many products available
unique selling point (USP)
a feature that differentiates a product from its competitors
risk
the possibility that things will go wrong which can be managed by planning from an entrepreneur
uncertainty
the lack of knowledge of the unpredictable and uncontrollable events that affect a business
dynamic market
a market that is subject to rapid or continuous change
product orientation
when the business focuses on the characteristics of the product rather than responding to market preferences
market orientation
when a business designs goods and services based on the needs and wants of the customers
primary research
the process of gathering information first hand directly from consumers in the target market
secondary research
involves gathering existing data that has already been produced
qualitative research
collecting information about opinions and views
quantitative research
collecting numerical information on things that can be quantified
sampling
involves getting opinions from a selected group of people from the firm’s target market in order to find out about the market as a whole
market mapping
a tool for identifying the position of a product within a market
added value
difference between selling price and the cost of inputs, which a business creates by increasing the worth of the product
demand
amount of a product consumers are willing and able to buy at any given price
supply
the amount of a product producers are willing and able to provide at any given price
price elasticity of demand (PeD)
measures the responsiveness of quantity demanded to a change in price
PeD formula
PeD = % change in quantity demanded ÷ % change in price
income elasticity of demand (YeD)
measures the responsiveness of quantity demanded to a change in income
YeD formula
YeD = % change in quantity demanded ÷ % change in income
4 elements of the marketing mix (4 P’s)
- price
- product
- place
- promotion
product
refers to the thing that is sold by the business either a good or service
design mix
a combination of aesthetics, function and economic manufacture that make up a product’s design
promotion
the ways a business makes customers aware of its business
branding
the process of creating a unique and identifiable name, design or symbol
manufacture/corporate branding
using a company name to promote all products
product branding
using a unique name, design or symbol to promote a specific product
own brand
refers to the use of a retailer’s name to promote a specific product
