Unit 5: Marketing Flashcards
Advertising
Communicating with the customer to inform them about / convince them to buy a product
Boston Matrix
A tool that allows a business to analyse the value / prospects of each product in their portfolio
Brand Image
How the brand is seen by the customer, their perception of its strengths, weaknesses, personality. It changes over time and all of the customers’ interactions with the brand
will inform it
Competitive Pricing
Setting a price to be in line with a competitors’ price for the same or similar products
Complementary Product
A product that is sold alongside another that may be of use or interest to a customer.
For example, extended warranties alongside the checkouts at Currys PCWorld
Cost-Plus Pricing
Adding a percentage to the cost of producing a product so that a profit is made
Customer Engagement
How the business tries to build a relationship with the customer in order to build loyalty
Direct Marketing
Manufacturers speaking to customers without intermediaries. Often with leaflets or door-to-door salespeople
Distribution Channels
How the product gets from manufacturer to the customer. Whose ownership does it
pass through? Manufacturer > Wholesaler / Distributor / Agent > Retailer, etc
EPOS
Electronic Point of Sale. A till / checkout that will automatically update stock / print coupons and vouchers etc
Extension Strategies
Methods that extend the lifecycle of a product. Such as, updated packaging, adding new or different features, changing target market, special offers, advertising, and price reduction
Focus Group
A group of people chosen from the target market to discuss a product. Provides the business with qualitative data relating to their opinions
Intermediary
The businesses in the middle of the distribution channel between manufacturer and the customer
Loss Leader
A product sold for less than it costs in order to encourage more customers. For example, fuel at supermarkets
Market Research
Collecting information about customers, competitors, and the market that a company
operates in
Marketing
The activities within a business that combine to ensure the customer gets what they want, in the quantities they want, at a price they are willing to pay
Marketing Mix
The four areas of marketing, and how a company uses them in combination to meet
the needs and wants of customer while maximising sales, revenue and profit
Penetration Pricing
Setting a low price in order to establish a new product in a market, or to quickly gain market share
Point of Sale
The place in a store, or webshop that the customer buys the product. Often an
opportunity to attempt to sell complementary products
PR – Public Relations
The act of managing the relationships between the business and wider groups. For example, environmental groups, pressure groups or investors. All with the aim of improving brand image
Primary Research
Designing your own research, then collecting the information first-hand
Product Differentiation
Developing features within a product that set it apart from other products in the same market. Using these differences to help promote the product and convince customers
Product Lifecycle
The stages a product goes through from initial idea to removal. Research and
Development > Introduction > Growth > Maturity > Decline (> Rejuvenation / Extension)
Product Portfolio
The range of products offered by a company
Promotion
Communicating with customers in order to inform / remind them about a product or persuade them to buy
Qualitative Market Research
Collecting information about customers’ thoughts/opinions about a product –
customers are able to explain in detail
Quantitative Market Research
ollecting information in a numerical manner – less detail is possible, but statistical analysis is easier
Retail
A business that sells goods
Sales Value
The revenue generated from sales
Sales Volume
The number of items sold
Secondary Research
Using sources of information that have already been collected / published. Also called ‘desk research.’
Segmentation
Dividing a market into groups that can be more easily targeted with specific products / adverts / prices. It enables the business to meet the needs of a specific group more easily
Skimming
Setting a higher than usual price when a product is first released to capitalise on early adopters being willing to pay more. For example, Xbox ‘Day One Edition.’
Telesales
Attempting to sell products by phone
Unique Selling Point (USP)
The main benefit / key feature of a product that differentiates it from the other products in the same market
Wholesaler
A business that sells in large quantities, usually buying them from manufacturers, then
selling to retailers.
