Unit 3 Flashcards
Market
The market is all customers and consumers who are interested in buying a product and have the financial resources to do so
Niche Market
A niche market is a small segment of the mass market, for people with specific tastes and similar spending patterns
Market Segmentation
Market segmentation is the process of dividing up a mass market into different segments so you can target consumers with similar spending patterns
Primary research
The gathering of new information specific to the needs of the business E.g. Questionnaires
Secondary research
The use of data that is already in existence E.g. Commercial reports and government data
Brand
A name image or symbol that distinguish a product from competitors products
Brand Image
The general impression of a product held by consumers
Market skimming
Setting a high price for a new product that is unique or very different from any other product on the market
Penetration Pricing
Setting a low price to attract customers to buy a new product
Competitive pricing
Setting a price similar to that of competitors products which are already established in the market
Price leadership
Smaller firms set their price based on the price set by the dominant firm in the industry
Loss leader pricing
Setting the price of a small number of products at below cost to attract customers into the outlet in the hope that they will buy other products priced on earn profit
Cost-Plus pricing
Setting price by adding a fixed amount to the cost of making or buying the product
Promotional pricing
Involved pricing the product as low as possible for a limited period to get consumers to buy. E.g. Loss leader pricing, discounting, Buy one get one free etc
Down-market firms
They aim to attract a large number of sales and make a small profit from each sale
Up-market firms
They aim to attract a number of sales and make a smaller number of sales and make a large profit from each sale
Demand
The number of people who are willing and able to purchase your product, As you increase the price of your product, demand goes down. (Law of demand)
Price elasticity
It measures how much the demand for your product changes when you change the price
Sponsorship
Payment by a business to have its name or products associated with a particular product
Point of sale
The place where a product is sold E.g. a Shop or a website
Channel of distribution
The method used to distribute a product from its producer to consumers
Licensing
A business in one country permits a firm in a foreign country to produce its branded productsI
international franchising
A methods of expansion that new franchises can use to move into new markets and locations
Customer base
The group of customers a business sells its products to
Target Market
Individuals or organisations identifies by a business as the customers or consumers of its products
Customer
An individual or business that buys goods and services from a business
Consumer
The final user of a product
Consumer markets
Markets for goods and services bought by the final consumer
Industrial markets
Markets for goods and services bought by other businesses to use in their production process
Business enviroment
The combination of internal and external factors that influence the operations of a business
Free trade
No barriers exist that might prevent trade between different countries
Mass marketing
Selling the same product to the whole market
Market segment
A part of the whole market in which consumers have specific characteristics
Demographic segmentation
Dividing consumers in the market by factors such as age, gender, income, ethnic background and social class
Psychographic segmentation
Dividing consumers in the market by lifestyles, personalities and attitudes
Market research
The process of collecting, recording and analysing data about the customers, competitors and market for a product
Unique selling point
The special feature of a product that sets it apart from competitors products
Market orientated
Products are developed based on consumer demand as identified by market research
Product orientated
The firm decides what to produce and then tries to find buyers for the product
Quantitative research
The collection of numerical data that can be analysed using statistical techniques
Qualitative research
The collection of information about consumers buying behaviour and their opinions about products
Sample
A representative sample of the target market selected to take part in market research
Marketing mix
4 marketing decisions needed for the effective marketing of a product
Four Ps
The right product at the right price with the right promotion in the right place
Product
The goods and services produced to satisfy a customer need or want
Product life cycle
The pattern of sales of a product from introduction to its withdrawal from the market
Extension strategies
Marketing activities to extend the maturity stage of a product
Price
The amount paid by the customer to the supplier when buying a good or service
Product quality
The product meets the needs and expectations of customers
Price elasticity of demand
Measures by how much demand (sales) for a product changes when there is a change in its price
Price inelastic demand
The percentage change in demand (sales) is less than the percentage change in price
Price elastic demand
The percentage change in demand is greater than the percentage change in price
Revenue
The amount earned by a business from the sale of its products
Wholesaler
A business that buys products in bulk from producers and then sells them to retailers
Retailer
Shops an other outlets that sells goods and services to the final consumer
Middlemen
These are the intermediaries in the channels of distribution, for example wholesalers and retailers
Direct Selling
The product is sold by the producer directly to the final consumer without the need for any middlemen.
Promotion
Marketing activities used to communicate with customers and potential customers to inform and persuade them to buy a business’s products
Advertising
Paid for communication with consumers which uses printed and visual media. The aim is to inform and persuade consumers to buy a product
Informative advertising
Information about the product communicated to consumers to create product awareness and attract their interest
Persuasive advertising
Communication with consumers aimed at getting them to buy a firm’s products rather than a competitors product
Below the line promotion
Promotion that is not paid for communication but uses incentives to encourage consumers to buy
Sales promotion
Incentives used to encourage short-term increases in sales or repeat purchases
Personal selling
Sales staff communicate directly with the consumer to achieve a sale form a long-term relationship between firm and consumer
Direct mail
Also known as ‘mailshots’ printed materials which are sent directly to the addresses
Marketing budget
The amount of money made available by a business for its marketing activities during a particular period of time
E-commerce
Use of the internet and other technologies by businesses to market and sell goods and services to customers
Marketing strategy
A plan to achieve the marketing objectives using a given level of resources
Legal controls
Laws that control the activity of businesses
Barriers to trade
Usually taxes, quotas or bans that one country places on the goods of other countries to prevent or increase the cost of them entering that country
Domestic market
The market for goods and services in the business’s own country
