Unit 2 Flashcards
Advertising
A series of advertisements, often using different advertising media
Advertising Media
The method by which a business can advertise a product. E.g. newspapers, radio.
Census Data
Data collected by the Government every 10 years, questioning the entire population on their income, occupation etc.
Cost-Plus Pricing
A pricing method that adds a percentage of profit to the total costs of making a product. This gives the selling price.
Decline
When sales are falling as the product or service is seen by customers as being old and they switch to newer products and services
Design
An important element in a number of different products, especially where style and technology work together
Digital Distribution
The distribution of goods and services digitally by downloading from a website
Focus Groups
Selected small groups of customers who give their opinion on products
Growth
When sales are growing strongly as the new product or service becomes known
P’s of marketing Mix
P’s of Marketing: Price, Product, Promotion and Place
Penetration Pricing
When a price is set lower than the competitor businesses. Often used by new businesses to break into a market. This should only be seen as a short-term strategy
Physical Distribution
The distribution of goods using a physical presence such as a shop or office
Point of Sale promotions (4)
Promotions: Includes price reductions, loss leaders, competitions and free samples
Primary Research
Data collected first-hand, often in the form of surveys. Sometimes referred to as field research
Product Life Cycle
The life of a product, usually shown as a graph divided up into four stages: introduction; growth; maturity; and decline
Promotional Pricing
Where prices are reduced to give products a boost or to
sell off old stock.
Qualitative Data
Data based on opinions of those being asked
Quantitative Data
Data collected that is based on facts or numbers, usually easier to analyse than qualitative data
Questionnaire
A question sheet filled in by the consumer
Research and Development
Used to help introduce both new and existing products. The research may be testing products in a laboratory or conducting market research by interviewing customers
Innovation
The improvement on an original idea, which will often involve using new processes.
Internal Data
Data already within a business based on past performance
Interview
A question sheet filled in by the person conducting the interview
Introduction
When a product or service is first on sale
Invention
The introduction of a totally new product or feature
Market Data
Information that help marketing decisions. It includes data on such things as market shares, changes in demand and the effect of promotions
Market Research
The collection of data on consumer habits to help decision-making in marketing
Market Segmentation
Splitting the market for a product into different parts, or segments
Market Share
The percentage of total sales of a product that a business has made.
Maturity
When sales are at their highest level
Secondary Research
The collection of data using research or information provided by others, such as magazines, journals and the internet. Often called desk research
Skimming
Where a new product is more advanced than that of competitors; a price is set high as some customers are willing to pay higher prices to own the newest technology.
Target Market
The group of customers to whom a business aims to sell its products. The target market may be other businesses as well as consumers
Trials
Used to test whether customers will buy a product
