unit 4 marketing Flashcards
market share
the percentage of sales in the total market sold by one business
market orientation
an outward-looking approach basing product decisions on consumer demand, as established by market research
marketing
the management task that links the business to the customer by identifying and meeting the needs of customers profitably - it does this by getting the right product at the right price to the right place at the right time
market size
the total level of sales of all producers within a market
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
market share formula
(sales of a business in a time period/total market sales in a time period) x100
market leadership
when a business has the highest market share of all firms that operate in the market
market growth
the percentage change in the total size of a market (volume or value) over a period of time
annual market growth formula
((total market sales this year-total market sales last year)/total market sales last year ) x100
unique selling point
the special feature of a product or customer service that makes it different from those of competitors
target market
the segment of the market that a particular product is aimed at
market segment
a sub-group of a market made up of consumers with similar characteristics, tastes and preferences
market planning
the process of developing appropriate strategies and preparing marketing activities to meet marketing objectives
market segmentation
identifying different segments within a market and targeting different products or services to them
marketing mix
the key decisions that must be taken in the effective marketing of a product
consumer profile
a quantified picture of consumers of a firm’s products, showing proportions of age groups, income levels, location, gender and social class
production positioning
the process of designing the company’s products and image to occupy a distinct place in the perceptions of consumers in the target market
product position/perception map
a diagram that analyses consumer perceptions of competing brands in respect of two product characteristics
niche marketing
identifying and exploiting a small segment of a larger market by developing products to suit it
niche market
a small and specific part of a larger market
mass marketing
selling the same products to the whole market with no attempt to target groups within it
mass market
a market for products that are often standardised and sold in large quantities
boston consulting group matrix
a method of analysing the product portfolio of a business in terms of market share and market growth
market research
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 firm’s needs e.g surverys, observations, focus groups
secondary research
collection of data from second-hand sources e.g government publications, academic journals
survey
detailed study of a market or geographical area to gather data on attitudes, impressions, opinions and satisfaction levels of products or businesses, by asking a section of the population
open questions
invite a wide-ranging or imaginative response
closed questions
limited to a number of preset answers
focus groups
a group of people who are asked about their attitude towards a product, service, advertisement, or new style of packaging
observational technique
a qualitative method of collecting and analysing information obtaining through directly or indirectly watching and observing others in business environments e.g watching consumers walk around a supermarket
qualitative research
research into the in-depth motivation behind consumer buying behaviour or opinions
quantitative research
research that leads to numerical results that can be presented and analysed
sample
group of people taking part in a market research survey selected to be representative of the whole target market
sampling error
mistakes in research caused by using a sample for data collection rather than the whole target population
quota sampling
gathering data from a number of people chosen out of a specific sub-group
random sampling
every member of the target population has an equal chance of being selected
convenience sampling
drawing a representative selection of people because of the ease of volunteering or selection people because of their availability or easy access
digital promotion
the use of the internet, mobile devices, social media, search engines and other channels to communicate with consumers to provide information about products and encourage the purchase of them
marketing mix
the key decisions that must be taken in the effective marketing of a product
coordinated marketing mix
key marketing decisions complement each other and work together to give customers a consistent message about the product
product
the end result of the production process sold on the market to satisfy a customer need
consumer durables
manufactured products that can be reused and are expected to have a reasonably long life e.g cars
product life cycle
pattern of sales recorded by a product from launch to withdrawal from the market
product portfolio
collection of all the products offered for sale by a business
extension strategies
marketing plans that extend the maturity stage of the product before a brand new one is needed
