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.
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.
