Topic 8 Flashcards
What is informative advertising
informing people of available products
What is persuasive advertsing
persuading consumers to chose a provider rather than a product
What is transactional selling
an approach to finding and keeping customers that centres on the product rather than the customer
What is relationship marketing
an approach to selling that is centred on building a long term relationship with customers
what is brand extension
where new products launched by a business can benefit from the positive reputation associated with the business’s existing brands
what is brand loyalty
Continuing to buy a particular product or buy from aparticular business even if new and better products are being introduced by competitors
what is branding
The name, design, logo or symbol that distinguishes the
product of one provider from that of another
what is a customer led approach
Where a provider finds out what people need or want and then designs a product to satisfy this need
what is customer retention
Activities undertaken to persuade existing customers to stay with a business
what is direct selling
Sales that are arranged directly between the customer and the provider without the intervention of a financial adviser
what is a loss leader
A product offered by a business at a price that is below what
it costs the business to produce it; the aim is to attract customers, who then purchase other products on which the
business does earn a profit
what is marketing mix
The combination of factors that attracts and retains customers, eg supplying the right product at the right price and promoting it effectively. Sometimes summarised as the 4Ps or 7Ps
what is pareto principle
A principle which states that, in many situations, 80% of the
effects arise from 20% of the causes. Also known as the
80:20 rule
what is price sensitivity
The degree to which the price of a product affects a consumer’s decision to buy it
what is sales literature
Information such as brochures and leaflets, created by a provider’s marketing department
