Topic 5 - Marketing Flashcards
What does it mean by Market segmentation
Dividing a market into segments according to characteristic e.g. age, gender, lifestyle, income
What does it mean by Mass market
A mass market is where a high volume of sales can be made, as most people will be interested in buying the product
What does it mean by Niche market
A niche market offer different products that appeal to a smaller number of people
What does it mean by Customer profiling
After businesses identify their target market they can build up a customer profile which shows the characteristics of their customers and what makes them behave in a certain way
What does it mean by Market Research
Is the process of gathering, analysing and processing data relevant to marketing decisions
What does it mean by Primary/ Field Research
Uses data gathered for the first time
What does it mean by Secondary or Desk Research
Uses data that has been gathered already
What does it mean by Focus Groups
Consumers discuss their reactions to products before they are launched
What does it mean by Consumer Panels
Recruited by research companies to represent the view of consumers in a sector
What does it mean by Observation
Involves looking at what people do and how they behave, and recording it
What does it mean by Marketing Mix
Refers to all the activities influencing whether a customer buys a product
What does it mean by Product
The good or service provided by a business
What does it mean by Price
The amount of money a business wants to receive to sell a good or service, or the amount of money the consumer is willing to pay to buy that product
What does it mean by Promotion
Involves information and techniques used by businesses to make consumers aware of products and to persuade them to buy those products
What does it mean by Place
Where the product is available for the consumer to purchase
What does it mean by Product portfolio/ Product range
Is the collection or range of goods and services offered by business
What does it mean by Product differentiation
Involves distinguishing a product or service from others
What does it mean by USP
Unique selling point
What does it mean by Brand
Recognisable name, logo, design
What does it mean by Own brand
A product which is sold under the brand name of a supermarket chain or other retailer, rather than under the name of the business which manufactures the product, is known as an own brand
What does it mean by Innovation
The process of changing an idea or invention into a good or service
What does it mean by Product life cycle
Shows how the sales of a product may change over time. Development - introduction – growth - maturity - decline
What does it mean by Extension strategies
Attempts to maintain the sales of a product and prevent it from entering the decline stage of the product life cycle
What does it mean by Market led pricing
A business will charge a price based on the market and competitors
