Unit 4 - Marketing Flashcards
above-the-line promotion
any form of advertising through the mass media made by third parties, e.g. TV spot
advertising
method of informative and/or persuasive promotion that is usually paid for
agent
negotiators who help to sell the vendor’s product, e.g. real estate agents
B2B
(business to business) online trade conducted directly for business customers rather than the end user
B2C
(business to consumer) online trade conducted directly for the end-user
below-the-line promotion
promotional methods that do not directly use the mass media, e.g. loyalty cards
branding
use of an exclusive name, symbol or design to identify a specific product or business
cash cow
term used in the Boston matrix: product with a large market share in a low growth market
channel of distribution
ways that a product gets from the producer to the consumer
consumer goods
products bought for personal consumption: consumer durables (cars, computers) and consumer non-durables (food, fresh flowers)
consumer profile
characteristics of customers in different markets, e.g. age, gender, income
cost-plus pricing
setting prices based on unit costs and then adding a specific amount or percentage profit
differentiation
any strategy used to make a product appear to be dissimilar from others, e.g. quality, branding, packaging
direct marketing
any promotional activity that involves making direct contact with customers, e.g. door-to-door selling, direct selling
direct selling
salesmen deals with the customer face to face
distribution
process of getting products to customers at the right time and place in the most cost-effective way
distributors
independent businesses that act as intermediaries by specialising in the trade of products
dog
term used in the Boston matrix: product with a low market share in a low growth market
e-commerce
trading of goods and services via the internet
e-tailers
businesses that operate predominantly online, e.g. Dell
ethical marketing
moral aspects of a firm’s marketing strategies
exporting
selling domestically produced goods and services to overseas buyers to gain access to larger markets
extension strategy
attempt to lengthen the life-cycle of a particular product
global marketing
marketing of a product by using the same strategy in various countries to gain from marketing economies of scale
intermediaries
agents or firms that act as a middle person in the chain of distribution between producer and consumer
international marketing
marketing of a firm’s product in foreign countries
market leadership
firm that dominates the market share in a particular market
market orientation
business focuses on making products that they can sell, rather than selling products that the can make
market research
marketing activities designed to discover opinions, feeling and habits of potential and existing customers
market segmentation
process of categorising customers into distinct groups with similar characteristics and similar wants and needs
market share
value of the firm’s sales revenue as a percentage of the industry total
market size
value of sales revenue from all businesses in a particular market
marketing
management of predicting, identifying and meeting the needs and wants of customers at a profit
marketing mix
main elements of a firm’s marketing strategy: product, price, promotion, place (4 Ps)
marketing objectives
targets that the marketing department wishes to achieve
marketing plan
document outlining a form’s marketing objectives and strategies for a specified time period
marketing planning
process of devising marketing objectives and appropriate strategies to achieve these goals
marketing strategy
any medium – to long-term plan to achieve the firm’s marketing objectives
online presence
business has a dedicated website for e-commerce
packaging
ways in which a product is presented to the consumer
penetration pricing
setting low prices to gain entry into a new market
position map
visual aid that shows customer perception of a product or brand in relation to others in the market
price skimming
setting very high prices for innovative or high-tech products
primary research
collection of new data as the information does not currently exist
product
any physical or non-physical good or service that is purchase by customers
product design
physical aspects of a product and the process of adding value to it
product life cycle
typical process that products go through: introduction, growth, maturity, decline
product line
varieties of a particular product that serves the same purpose in a particular market, e.g. BMW mini includes hardtop, convertible, cooper S
product mix
different product lines that a business produces, e.g. BMW produces Mini, 3 series, Roll-Royce
product orientation
business focuses on making products that can make, rather than making products that they can make
product portfolio
range of products owned and developed by a firm at any point in time
product range
all product lines of a firm’s product mix
promotion
methods used to inform, persuade or remind people about a firm’s products or brands
promotional mix
combination of individual promotional methods used by a business, such as advertising, packaging
publicity
process of promoting a business and its products by getting media exposure without directly paying for it
qualitative market research
focuses on comments, suggestions, opinions
quantitative market research
focuses on collection of numerical data
question mark
(or problem child) term used in the Boston matrix: product with a small market share in a high growth market
repositioning
strategy that involves changing the market’s perception of a product or brand
retailer
seller of products to the general public that operate in outlets
sales promotion
short-term incentive designed to stimulate demand for a product, e.g. discount coupons
secondary research
gathering data and information that has already been collected by another party
slogans
catchphrases designed to represent the essence of a business or its products
spam
unsolicited messages via email
sponsorship
promotional technique that involves funding, supporting or donating resources for an event in return for prominent publicity
star
term used in the Boston matrix: product that have a large market share in a high growth market
telemarketing
use of telephone systems to sell products directly to potential customers
unique selling Point USP
any aspect of a product that makes it stand out from those offered by rival businesses
viral marketing
promotional technique that relies on the use of online social networks like email, blogs, YouTube
wholesalers
businesses that purchase large quantities of products from manufactures and then break the bulk purchases into smaller units for resale to retailers
word of mouth
spreading of messages about a firm and its products
targeting
each distinctive market segment can have its own marketing mix
Boston Matrix
marketing tool for analysing the product portfolio of a business; it shows whether products have high or low market share and operate in high or low market growth industries
brand awareness
extent to which potential customers recognise a particular brand
brand development
long-term product strategy that involves strengthening the name and image of a brand to boost its appeal and sales
brand loyalty
occurs when customers buy the same brand of a product time and time again because they are devoted t the brand
brand value
premium that customers are willing to pay for a brand above the value of the product itself
C2C
(consumer to consumer) e-commerce platform that enables customers to trade with each other
cluster sampling
sample is chosen in a particular area when getting feedback involve too much time or travelling (e.g. a street, a shopping centre, a town)
convenience sampling
uses people that are easy to reach (e.g. students use their classmates and friends)
focus group
forming small discussion groups to gain insight into the attitudes and behaviour of respondents
guerrilla marketing
strategy that aims to catch the attention of customers through unusual, unconventional or shocking techniques
logo
visual symbol to represent the business, its brands or its products
loss leader pricing
market-led pricing strategy that involves setting the price of a product that is below its cost of production
market skimming
firm sets price for new and innovative products high in order to gain customers who will pay almost any price to get the product
mass marketing
undifferentiated marketing which ignores targeting individual market segments
niche marketing
targets specific and well-defined market segments
place
distribution of products
predatory pricing
setting prices so low that rivals cannot compete at a profitable level
price discrimination
charging different prices to different groups of customers for the same product, e.g. different entrance fee for adults and kids
price war
firms compete by a series of intensive price cuts to threaten the competitiveness of rival firms
product differentiation
strategy used to make the product appear to be distinct from others, such as quality, branding, packaging
psychological pricing
rounding down numbers such as 9.90€
public relations
business activities aimed at establishing and protecting the desired image of an organisation
quota sampling
method that involves segmenting the population and then select a certain number (the quota) of people in each market segment
snowballing
sampling method that relies on “word of mouth” (through friends, family, colleagues) to increase the sample size
social marketing
any activity that seeks to influence social behaviour to benefit the target audience
social networking
individuals use particular platform to build social relationships between people
specialty channel of distribution
any indirect way to distribute products that does not involve retailers, e.g. e-commerce, vending machines, mail order
stratified sampling
subdivides the population into segments with similar characteristics and selects a number of respondents from each stratum that is proportional to the population
