Unit 3: Key Words Flashcards
Define Marketing
identifying customer wants and satisfying them profitably
Define customer
a person, business of other organisation which buys goods or services from a business
Define customer loyalty
when existing customer continually buy products from the same business
Define customer relationships
communicating with customers to encourage them to become loyal to the business and its products
Define market share
the percentage of a total market sales held by one brand or business
Define consumer
a consumer buys goods or services for personal use - not to re-sell
Define mass market
where there is a very large number of sales of a product
Define niche market
a small, usually specialised, segment of a much larger market.
Define market segment
an identifiable sub-group of a whole market in which consumers have similar characteristics or preferences.
Define market research
the process of gathering, analysing and interpreting information about a market
Define product-orientated
a type of business whose main focus of activity is on the product itself
Define market-orientated
a type of business that carries out market research to find customers wants before a product is developed and produced
Define marketing budget
a financial plan for the marketing of a product or product range for some specified period of time. it specifies how much money is available to market the product of range, so that the marketing department knowns how much it may spend
Define primary research
the collection and collation of original data via direct contact with potential or existing customers (also called field research)
Define secondary research
using information that has already been collected and is availiable for use by others (also called desk research)
Define questionnaire
a set of questions to be answered as a means of collecting data for market research
Define online surveys
online surveys require the target sample to answer a series of questions over the internet
Define interviews
interviews involve asking individuals a series of questions, often face-to-face of over the phone
Define focus group
a group of people who are representatives of the the target market
Define sample
group of people who are selected to respond to a market research exercise, such as a questionnaire
Define random sample
when people are selected at random as a source of information for market research.
Define quota sample
when people are selected on the basis of characteristics (such as age, gender, income) as a source of information for market research
Define marketing mix
a term used to describe all the activities which go into marketing a product or service. these activities are often summarised as the 4Ps - product, price, place, promotion
Define USP
the special feature of a product that differentiates it from the products of competitors (unique selling point)
Define brand name
the unique name of a product that distinguishes it from other brands
Define brand loyalty
when consumers keep buying from the same brand again and again instead of choosing a competitor’s brand
Define brand image
an image or identity given to a product which gives it a personality of its own and distinguishes it from its competitor’ brands
Define packaging
the physical container or wrapping for a product. it is also used for promotion and selling appeal
Define product life cycle
describes the stages a product will pass through from its introduction, through its growth until it is mature, and then finally its decline
Describe extension strategy
a way of keeping a product at the maturity stage of the life cycle and extending the cycle
Define cost-plus pricing
the cost of manufacturing the product plus a profit mark-up
Define competitive pricing
when the product is priced in line with or just below competitor’ prices to try to capture more of the market
Define penetration pricing
when the price is set lower that competitors’ prices in order to be able to enter a new market
Define price skimming
where a high price is set for a new product on the market
Define promotion pricing
when a product is sold at a very low price for a short period of time
Define dynamic pricing
when businesses change the products prices, usually when selling online, depending on the level of demand
Define price elastic demand
where consumers are sensitive to changes in price
Define price inelastic demand
where consumers are not sensitive to changes in price
Define distribution channel
the means by which a product is passed from the place of production to the customer
Define agent
an independent person or business that is appointed to deal with the sales and distribution of a product or rang of products
Define promotion
where marketing activities aim to raise customer awareness of a product or brand, generating sales and helping to create brand loyalty
Define advertising
advertising paid for communication with potential customers about a product to encourage them to buy it
Define informative advertising
where the emphasis of advertising or sales promotion is to give full information about the product
Define persuasive advertising
when advertising or promotion is trying to persuade the consumer that they really need the product and should buy it.
Define target audience
people who are potential buyers of a good or service
Define sales promotions
incentives such are special offers/deals aimed at customers to achieve short-term increase in sales
Define marketing budget
a financial plan for the marketing of a product or product range for a specified period of time
Define social media marketing
a form of internet marketing that involves creating and sharing content on social media networks in order to achieve marketing and branding goals. it includes activities such as posting text and image updates, videos, and other content that achieves audience engagement, as well as paid social media advertising.
Define viral marketing
when consumers are encouraged to share information online about the products of a business
Define e-commerce
the ‘online’ buying and selling of goods and services using computer systems linked to the internet and apps on mobile cell phones
Define dynamic prices
when business change product prices, usually when selling online, demanding on the level of demand
Define marketing strategy
a plan to combine the right combination of the four elements of the marketing mix for a product or service to achieve a particular marketing objective(s)
