Unit 3 Flashcards
Marketing
The management task that links the business to the customer by identifying and meeting the needs of customers profitability — it does this by getting the right product at the right price to the right place at the right time
Marketing objectives
The goals set for the marketing department to help the business achieve its overall (corporate) objectives
Demand
The quantity of a product that consumers are willing and able to buy at a given price in a time period
Supply
The quantity of a product the firms are prepared to supply at a given price in a time period
Equilibrium price
The price level at which demand is equal to supply
Customer orientation
An outward looking approach basing product design on consumer demand, 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 — then trying to sell them
Consumer products
Goods or services sold to end users
Industrials products
Goods or services sold to businesses
Niche marketing
Identifying and exploiting a small segment of a larger market by developing products to suit it
Mass marketing
Selling the same product 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
Consumer profile
A quantified picture of consumers of a firm’s products, showing proportions of age groups, income levels, occupation, gender and social class
Customer relationship marketing (CRM)
Using marketing activities to build and establish good customer relationships so that the loyalty of existing customers can be maintained
Market growth
The percentage change in total size of a market (volume or value) over a period of time
Corporate objectives
Well defined and realistic goals that are set for the whole company
Market research
This is the process of collecting, recording and analysing data about customers, competitors and the market
Primary research
The collection of first hand data that is directly related to a firms needs
Secondary research
The use of existing data that was originally collected for another purpose
Qualitative data
Non-numerical data, which provides insight into the detailed motivations of consumers and helps to explain their buying behaviour or opinions
Quantitative data
Numerical results from research that can be statistically analysed
Coding
The process of labelling and organising qualitative data to identify the main themes and the links between them
Marketing mix
The four key decisions of product, price promotion and place that must be taken to enable the effective marketing of a product
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 easily be compared with another product
New product development (NPD)
The design, creation and marketing of new foods and services
Unique selling point
The special feature of a product that differentiates it from its competitors products
Product differentiation
The unique qualities of a product that lead to a difference between the product and competitors product
Product portfolio analysis
Analysing the range of existing products of a new business to help them allocate resources effectively between them
Product life cycle
The pattern of sales recorded by a product from launch to withdrawal from the marketing and is one the main forms of product portfolio analysis
Extension strategies
These are marketing plans to extend the maturity stage of the product before a brand new one is needed
Advertising
Paid-for communication with consumers to inform and persuade
Direct promotion
A range of promotional activities aimed directly at target customers. Also known as direct marketing
Sales promotion
Incentives such as special offers or special deals directed at consumers or retailers to achieve short-term sales increase and repeat purchases by customers
Digital promotion
The promotion of products using digital technologies, mainly on the internet but also including mobile phones
Channels of distribution
The chain of intermediaries a product passes through producer to the final consumer
Sample
The group of people taking part in a market research survey selected to be representative of the overall target market
Sample bias
When a sample is not a good representation of the whole population, because it is chosen in ways which give some people a greater chance of being selected
Marketing strategy
A plan of action giving details of how a business intends to achieve its marketing objectives by creating competitive advantage
Market segment
A subgroup of a whole market in which consumers have similar characteristics
Industrial market
The selling of products by businesses to other businesses, also known as business to business (B2B)
Consumer market
The selling of products by businesses to the final end user, ask known as business to consumer (B2C)
Market size
The total value (or quantity) of sales of all producers within a market in a given time period
Brand leader
The brand with the highest share of the market
Sampling
The process of selecting a group of respondents from a larger population
Arithmetic mean
Dividing the total of all results by the number of results
Mode
The most common number
Median
The middle number when the data has been ordered
Range
The difference between the highest and lowest number
Product
Goods or services that are the end result of the production process and are sold on the market to satisfy customer needs
Goods
Products which has a physical existence, such as washing machines and chocolate bars
Services
Products which have no physical existence, but satisfy customer needs in other ways, such as hairdressing, car repairs, banking
Brand
An identifying symbol, name, or image that distinguishes a product from its competitors
Product positioning
Consumer’s view of a product or service as compared to its competitors
Consumer durable
A manufactured product that can be re-used and is expected to have a reasonably long life, like a car or washing machine
Boston matrix
A method of analysing the product portfolio of a business in terms of market share and market growth
Mark-up pricing
Adding a fixed mark-up for profit to the unit cost of buying in a product
Cost-plus pricing
Setting a price by calculating a total in it cost for the product and then adding a fixed profit mark-up
Contribution-cost pricing
Setting prices based on the variable costs of making a product, in order to make. Contribution towards fixed costs and profit
Competitive pricing
Making pricing decisions based on the price set by competitors
Price discrimination
Charging different groups of consumers different prices for the same good or service
Dynamic pricing
Offering products at a price that changed according to the level of demand and the customer’s availability to pay
Penetration pricing
Setting a relatively low price to achieve a high volume in sales
Market skimming
Setting a high price for a new product when a firm has a unique or highly differentiated product with price elasticity of demand
Psychological pricing
Setting a price at a level which matches customer’s view about a product’s perceived value
Promotion
The use of advertising to inform consumers and persuade them to buy a product
Promotion mix
The combination of promotional techniques that a firm uses to sell a product
E-commerce
The buying and selling of goods and services by businesses and consumers through an electronic medium
Online marketing
Selling and marketing activities that use the internet, email and mobile communications to encourage direct sales via electronic commerce (another way of saying e-commerce)
Digital distribution
The delivery of distribution of digital media content like audio, video, TV programmes, film, software and video games
Physical distribution
The activities that combine to achieve the efficient movement of finished products from the end of the production operation to the consumer
Integrated marketing mix
The key marketing decisions complement each other and work together to give customers a consistent message about the product
