Unit 3: Marketing Flashcards
What is the definition of marketing objectives?
The goals set for the marketing department to help the business achieve its overall objectives. These must meet the SMART criteria
What is the definition of marketing strategy?
Long term plan established for achieving marketing objectives
What is the definition of market orientation?
An outward looking approach basing product decisions on consumer demand, as established by market research
What is the definition of 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
What is the definition of asset-led marketing?
An approach to marketing that bases strategy on the firm’s existing strengths and assets instead of purely on what the customer wants
What is the definition of 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
What is the definition of demand?
The quantity of a product that consumers are willing and able to buy at a given price in a time period
What is the definition of supply?
The quantity of a product that firms are prepared to supply at a given price in a time period
What is the definition of equilibrium price?
The market price that equates supply and demand for a product
What is the definition of market size?
The total level of sales of all produces within a market
What is the definition of market growth?
The percentage change in the total size of a market (volume or value) over a period of time
What is the definition of market share?
The percentage of sales in the total market sold by one business:
Firm’s sales in time period ÷ total market sales in time period x 100
What is the definition of direct competitor?
Businesses that provide the same or very similar goods or services
What is the definition of unique selling point (USP)?
The special feature of a product that differentiates it from competitors’ products
What is definition of product differentiation?
Making a product distinctive so that it stands out from competitors’ products in the eyes of consumers
What is the definition of niche marketing?
Identifying and exploiting a small segment of a larger market by developing products to suit it
What is the definition of mass marketing?
Selling the same products to the whole market in which consumers have similar characteristics
What is the definition of market segmentation?
Identifying different segments within a market and targeting different products or services to them
What is the definition of consumer profile?
A quantified picture of consumers of a firm’s products, showing proportions of age groups, income levels, location, gender and social class
What is the definition of marketing?
The process of identifying, anticipating (predicting) and satisfying customer needs profitably
What is the definition of a market?
A group of customers that is interested in a product, has the resources to purchase the product and is permitted by law to purchase it
What is the relationship between price, supply and demand?
Increase in supply = decrease in price, increase in demand
Decrease in supply = increase in price, decrease in demand
Increase in demand = decrease in supply, increase in price
Decrease in demand = increase in supply, decrease in price
What are consumer products?
- Convenience items (newspapers and milk)
- Shopping items (clothes)
- Luxury products (Rolex watch)
What are industrial products?
These are capital goods and finished goods traded from business to business ready for retail to the final consumer. These goods do not fall into the same categorisation of consumer goods