Unit 2 Key terms, Marketing Flashcards
Marketing
Is concerned with finding the needs of customers and then meeting those needs
Market Research
About how the business collects information on whether or not their products or services will be bought
Primary research (field research)
Any type of research that is new/information being collected for the first time e.g surveys/questionnaires, interviews, focus groups, trials
Focus groups
A group of consumers who are selected to represent the target market brought together to discuss their feelings on a product /market
Trials
A product or service is sold for a short amount of time as a test to see whether or not consumers like the product
Secondary market research (desk research)
Research that another organisation has already completed / already exists e.g websites, census data
Census data
Data collected by the government every ten years, questioning the entire population on their income, occupation etc.
Internal data
Refers to past sale figures, profits and comments from customers. This can be used for future decision making
Qualitative data
More detailed information e.g interview
Quantitative data
Facts and figures
Market segmentation
splitting the market for a product into different parts or segments
Marketing mix
Made up of different parts, 4ps price product place promotion
Cost plus pricing
Adds a percentage to the cost of making a product to give the selling price
Competitor pricing
When a price is based on prices charged by a competitor business for a similar or identical product
Penetration pricing
When a business is new to the market - a price is set lower than competitor businesses. This is a short term strategy to help break customer loyalties from trusted brands
Price skimming
The business has a higher price than competitors because it has a better product, for which customers are willing to pay more for.
Promotional pricing
Prices are reduced for a short period of time, often to sell off old stock
Promotion
How a business informs its customers about a product of service and then persuades them to buy it
Loss leader
a product priced below cost-price in order to attract consumers into a shop or online store. The purpose of making a product a loss leader is to encourage customers to make further purchases of profitable goods while they are in the shop
Invention
introduction of a totally new idea
Innovation
Improvement of an original idea
Design
Related to style, technology
Product life cycle
The stages a product goes through from when it was first thought of until it finally is removed from the market
Introduction
researching, developing and then launching the product
Growth
When sales are increasing at their fastest rate
Maturity
Sales are near their highest, but the rate of growth is slowing down
Decline
Final stage of the cycle, when sales begin to fall
Extension strategies
Extending the life of a product before it goes into decline
Place
Where products and services are sold AND how the business gets products and services to the consumer
Distribution channel
All the organisations through which a product must pass between of production and purchase by the consumer
Physical distribution channel 1
Producer -> consumer
Physical distribution channel 2
Producer -> Retailer -> Consumer
Physical distribution channel 3
Producer -> Wholesaler -> Retailer -> Consumer
Whole saler
a large storage centre able to take in deliveries direct from producers, The role is to BREAK BULK - buying in large quantities from a producer and then selling smaller amounts to a retailer
Regional distribution centre (RDC)
Owned by the retailer (e.g next) and are used to store products they will later sell than buying from wholesalers
physical distribution
movement of goods that we ca see and touch e.g road transportq
Digital distribution
Distribution of goods digitally by downloading from a website or app
Market data
Information that will help a business make marketing decisions
