Unit 2 - Key Words Flashcards
Marketing
Finding the needs of consumers and then demonstrating how the business will meet those needs to increase sales
Market Research
Collecting data on consumer habits to help marketing decision making
Target Market
The group of customers who the business will aim its products.
Primary Research
Data collected first hand
Secondary Research
Data that already exists and isn’t collected first-hand
Questionnaire
A question sheet filled in by the potential consumer
Interview
A question sheet filled in by the person conducting the interview
Trials
Product trials are used to test whether customers will buy a product
Focus Groups
A selected, small group of customers who give their opinions on a product
Census Data
Data collected on the entire population by the Government every 10 years on their income, occupation
Internal Data
Data already in the business e.g. past sales data
Qualitative Data
Data based on consumers opinions
Quantitative Data
Data collected that is measurable based on facts or numbers.
Market segmentation
Splitting the market for a product into parts / segments e.g. age / income etc
4P’s of the marketing mix
4P’s that create a marketing strategy - Product, Place, Price, Promotion
Competitor pricing
Price is set based on prices charged by a competitor business for a similar product
Cost Plus pricing
Price is set by adding a percentage of profit to the total costs of making a product, creating a selling price
Penetration pricing
When a price is set lower than the competitor business, usually to help break into a market (A short term strategy)
Skimming pricing
Charging a high price for a new product, which is more advanced than that of the competition
Promotional pricing
Prices are reduced to boost sales or sell off old stock
Innovation
The improvement of an original idea, which will often use new processes
Design
An important element which considers style and technology
Design
An important element which considers style and technology
Invention
The introduction of a totally new product or feature
Research and development
Used to help introduce both new and existing products. Research can be testing products in a laboratory or conducting research with customers
Product Life Cycle
The life of a product shown as a graph divided into introduction, growth, maturity and decline
