Unit 3 Flashcards
Marketing
The management task that links the business to the customer by identifying and meeting the needs of customers profitably - it does this by getting the right product at the right price to the right place at the right time
Consumer markets
Markets for goods and services bought by the final user of them
Industrial markets
Markets for goods and services bought by businesses to be used in the production process of other products
Marketing objectives
The goals set for the marketing department to help the business achieve its overall objectives
Market strategy
Long-term plan established for achieving marketing objectives
Market orientation
An outward-looking approach basing product decisions on consumer demand, as established by market research
Product orientation
An inward-looking approach that focuses on making products that can be made - or have been made for a long time - and then trying to sell them
Asset-led marketing
An approach to marketing that bases strategy on the firm’s existing strengths and assets instead of purely on what the consumer wants
Societal marketing
This approach considers not only the demands of consumers but also the effects on all members of the public (society) involved in some way when firms meet these demands
Demand
The quantity of a product that consumers are willing able to buy at a given price in a time period
Supply
The quantity of a product that firms are prepared to supply at a given price in a time period
Equilibrium price
The market price that equates supply and demand for a product
Market size
The total level of sales of all producers within a market
Market growth
The percentage change in the total size of a market (volume or value) over a given period of time
Direct competitor
businesses that provide the same or
very similar goods or services.
Unique selling point (USP)
The special feature of a product that differentiates it from competitors’ products
Product differentiation
Making a product distinctive so that it stands out from competitors’ products in consumers’ perception
Niche marketing
Identifying and exploiting a small segment of a larger market by developing products to suit it
Mass marketing
Selling the same products to the whole market with no attempt to target groups within it
Market segmentation
Identifying different segments within a market and targeting different products or services to them
Market segment
A sub-group of a whole market in which consumers have similar characteristics
Consumer profile
A quantified picture of consumers of a firm’s products, showing proportions of age groups, income levels, location, gender and social class
Market research
This is the process of collecting, recording and analyzing data about the customers, competitors, and the market
Primary research
The collection of first-hand data that is directly related to a firm’s needs
Secondary research
Collection of data from second-hand sources
Qualitative research
Research into the in-depth motivations behind consumer buying behavior or opinions
Quantitative research
Research that leads to numerical results that can be statistically analyzed
Focus groups
A group of people who are asked about their attitude towards a product, service, advertisement, or new style of packaging
Sample
The group of people taking part in a market research survey selected to be representative of the overall target market
Random sampling
Every member of the target population has an equal chance of being selected
Systematic sampling
Every nth item in the target population is selected
Stratified sampling
This draws an example from a specified sub-group or segment of the population and uses random sampling to select an appropriate number from each stratum
Quota sampling
When the population has been stratified and the interview selects an appropriate number of respondents from each stratum
Cluster sampling
Using one or a number of specific groups to draw samples from and not selecting the whole population
Open questions
Questions that invite a wide-ranging or imaginative response - the results will be difficult to collate and present numerically
Closed questions
Questions to which a limited number of pre-set answers is offered
Arithmetic mean
Calculated by totaling all the results and dividing by the number of results
Mode
The value that occurs most frequently in a set of data
Median
The value of the middle item when data have been ordered or ranked. It divides the data into 2 equal parts
Range
The difference between the highest and lowest value
Inter-quartile range
The range of the middle 50% of the data
Marketing mix
The four key decisions that must be taken in the effective marketing product of a product
Customer relationship management
Using marketing activities to establish successful customer relationships so that existing customer loyalty can be maintained
Brand
An identifying symbol, name, image, trade ark that distinguishes a product from its competitors
Product
The end result of the production process sold on the market to satisfy a customer need
Consumer durable
Manufactured product that can be re-used and is expected to have a reasonably long life
Intangible attributes of a product:
subjective opinions
of customers about a product that cannot be measured or
compared easily.
Tangible attributes of a product
measurable features of
a product that can be easily compared with other products.
Product positioning
The consumer perception of a product or service as compared to its competitors
Product portfolio analysis
analyzing the range of
existing products of a business to help allocate resources
effectively between them.
Product life cycle
the pattern of sales recorded by a
product from launch to withdrawal from the market and is
one of the main forms of product portfolio analysis.
Extension strategies
Marketing plans to extend the maturity stage of the product before a brand new one is needed
Price elasticity of demand.
Measures the responsiveness of demand following a change of price
Mark-up pricing
Adding a fixed mark-up for profit to the unit price of a product
Target pricing
Setting a price that will give a required rate of return at a certain level of output/sales
Full-cost pricing
Setting a price by calculating a unit cost for the product (allocated fixed and variable costs) and then adding a fixed profit margin
Contribution cost pricing
Setting prices based on the variable costs of making a product in order to make a contribution towards fixed costs and profit
Competition based pricing
A firm will base its price upon the price set by its competitors
Dynamic pricing
offering goods at a price that changes
according to the level of demand and the customer’s ability
to pay.
Penetration pricing
Setting a relatively low price often supported by strong promotion in order to achieve a high volume of sales
Market skimming
Setting a high price for a new product when a firm has a unique or highly differentiated product with low price elasticity of demand
Promotion
The use of advertising, sales promotion, personal selling, direct mail, trade fairs, sponsorship and public relations to inform consumers and persuade them to buy
Promotion mix
The combination of promotional techniques that a firm uses to sell a product
Above-the-line promotion
A form of promotion that is undertaken by a business by paying for communication with consumers. One type is advertising.
Advertising
Paid-for communication with consumers to inform and persuade
Below-the-line promotion
Promotion that is not a directly paid-for means of communication, but based on short-term incentives to purchase. Sales promotion is one type.
Sales promotion
Incentives such as special offers or special deals directed at consumers or retailers to achieve short-term sales increases and repeat purchases by consumers
Personal Selling
A member of the sales staff communicates with one consumer with the aims of selling the product and establishing a long-term relationship between company and consumer
Sponsorship
payment by a company to the organisers
of an event or team/individuals so that the company name
becomes associated with the event/team/individual.
Public Relations
the deliberate use of free publicity
provided by newspapers, TV and other media to
communicate with and achieve understanding by
the public.
Branding
The strategy of differentiating products from those of competitors by creating an identifiable image and clear expectations about the product
Marketing/promotion budget
The financial amount made available by a business for spending on marketing/promotion during a certain time period
Channel of distribution
The chain of intermediaries a product passes through from producer to final consumer
Internet marketing
The marketing of products over the Internet
Viral marketing
The use of social networking sites or SMS text messages to increase brand awareness or sell products
E-commerce
the buying and selling of goods and services
by businesses and consumers through an electronic medium.
Integrated marketing mix
The key marketing decisions complement each other and work together to give customers a consistent message about the product
