Unit 4: Marketing Flashcards
Marketing
The management process of getting the right product to the right customer
At the right price, place and time
Product Orientation
A business approach that focuses on making the product first before attempting to sell it
Market Orientation
A business approach of first establishing customer demand through market research before producing and selling a product
Market Size
The total sales of all firms in a market
Market Growth
The percentage change in the total market size over a period of time
Market Share (HL)
The percentage of one firm’s share of the total sales in the market
Market Leader (HL)
A firm with the largest market share in a given market
Marketing Planning
The process of formulating marketing objectives and devising appropriate marketing strategies to meet those objectives
Market Segment
A sub-group of consumers with similar characteristics in a given market
Market Segmentation
The process of dividing the market into distinct groups of consumers so as to meet their desired needs and wants
Target Market
A group of consumers with common needs or wants that a business decides to serve or sell to
Targeting
The process of marketing to a specific market segment
Mass Market
A large or broad market that ignores specific market segments
Consumer Profile
The characteristics of consumers of a particular product in different markets based on their gender, age and income levels, etc.
Niche Market
A narrow, smaller or more specific market segment
Time Series Analysis (HL)
A quantitative sales forecasting method that predicts future sales data from past sales data
Sales Forecasting (HL)
The process of predicting the future sales of a firm
Product Position/Perception Map
A visual representation of how consumers perceive a product in relation to other competing products
Unique Selling Proposition
A product’s feature that differentiates it from other competing products in the market
Moving Average (HL)
Sales forecasting method that identifies and emphasises the direction of a trend
Extrapolation (HL)
An extension of a trend line to predict future sales
Market Research
The process of collecting, analysing and reporting data related to a particular market
Variation (HL)
Difference between actual sales and trend values
Primary Research
The collection of first-hand information from the market
Secondary Research
The collection of second-hand information from the market
Qualitative Research
The collection, analysis and interpretation of data about consumer opinions, attitudes or beliefs
Quantitative Research
The collection, analysis and interpretation of numerical data
Data that can be measured
Sample
A group of people selected to represent the population or target market under research
Sampling
The process of selecting an appropriate sample
Marketing Mix
The key elements of a marketing strategy that ensure the successful marketing of a product
Price
What consumers pay to acquire a product
Product
Any good or service offered to the market with the aim of satisfying customer needs or wants
Promotion
Ways of convincing consumers why they need a product and why they should buy it
Place
Concerns where the product will be sold and how it will be delivered to the market
People
The human capital in terms of skills, attitudes and abilities necessary in the production of goods or the provision of services
Processes
The procedures and policies on how an organisation’s product is provided and delivered
Product Life Cycle
The course a product passes through
From its development to its decline in the market
Physical Evidence
The tangible or visible touch points that are observable to customers in a business
Price Skimming
Setting a high price when introducing a new product to the market
Promotional Pricing
Temporarily reducing the price of a good or service to attract customers
Penetration Pricing
Setting a low initial price for a product with the aim of attracting a large number of customers quickly and gaining a high market share
Extension Strategies
Plans by firms to stop sales from falling by lengthening the product’s life cycle
Branding
The process of distinguishing one firm’s product from another
Boston Consulting Group Matrix (BCG)
An analysis method of a firm’s product portfolio regarding its market share and market growth
Brand
A name, symbol, sign or design that differentiates a firm’s product from those of its competitors
Brand Awareness
The ability of consumers to recognise the existence and availability of a firm’s good or service
Brand Loyalty
When consumers become committed to a firm’s brand and are willing to make repeat purchases over tim
Predatory Pricing
When a firm deliberately sets a very low price on its good or service
Aim of driving competitors out of the market
Brand Value
How much a brand is worth in terms of its reputation, potential income, and market value
Cost-Plus Pricing
Adding a mark-up to the average cost of producing a product
Loss Leader
Charging a low price for a product, usually below its average cost, to attract consumers to buy other higher-priced products
Premium Pricing
Where a firm sets a high price for a high-quality product
Dynamic Pricing (HL)
Where firms charge different prices for their products depending on which customers are buying them or when consumers are buying them
Competitive Pricing (HL)
Where a firm sets the price of its product relative to the competitors’ prices
Contribution Pricing (HL)
The calculation of the variable cost of production of a firm’s product, after which the product’s price is set
Price Elasticity of Demand (HL)
A measurement of how the quantity demanded of a good is affected by changes in its price
Price Discrimination (HL)
Charging different prices to different groups of consumers for the same product
Form of dynamic pricing
Above-the-Line Promotion
A paid form of communication that uses independent mass-media to promote a firm’s products
Through-the-Line Promotion
A form of promotion that combines above-the-line and below-the-line promotion strategies
Below-the-Line Promotion
A form of communication that gives a business direct control over its promotional activities
Not reliant on the use of independent media
Social Media Marketing
A marketing approach that uses social networking websites to market a firm’s products
Channel of Distribution
The path taken by a product from the producer or manufacturer to the final consumer
International Marketing (HL)
The marketing of goods and services across national boundaries
Globalization (HL)
The increasing worldwide competition leading to a rise in international marketing
E-Commerce (HL)
Trading over the internet
Piggybacking (HL)
The use of the existing distribution channels of one domestic business by another home country business trying to sell a new product overseas
