B.S note cardz Marketing Basics

AS & A2 Level

  • Created by: Christian
  • Created on: 07-01-10 16:58

Added Value

Added value in financial analysis of shares is to be distinguished from value added. Used as a measure of shareholder value, calculated using the formula:

Added Value = Sales - Purchases - Labour Costs - Capital Costs

Added Value can also be defined as the difference between a particular product's final selling price and the direct and indirect input used in making that particular product.

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Asset Led

A marketing strategy in which the attributes of the product (the asset) are used to market the product. Types of attributes can include the brand name and the image associated with the brand. An asset-led marketing strategy asks "How can we use the strengths of the business to satisfy consumer needs?" Business strengths can include core competencies, brand image, and global distribution. This strategy can be used concurrently with a market-led marketing strategy.

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Consumer Profile

Outline of significant demographic and psychographic details about the user of a particular product. The data include the user's age category, marital status, income level, education, occupation, sex, area of residence, and purchase behavior patterns. Knowledge of the consumer profile is very important in the determination of a creative advertising campaign. The advertising must appeal to both the user and the potential user of the product.

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Market Orientation

Business approach or philosophy that focuses on identifying and meeting the stated or hidden needs or wants of the customers, through its own or acquired products. See also product orientation and sales orientation.

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Product Orientation

Business approach or philosophy in which whatever the firm makes or supplies is the focus of the management's attention. See also market orientation and sales orientation.

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Market Segment

A market segment is a group of people or organizations sharing one or more characteristics that cause them to have similar product and/or service needs. A true market segment meets all of the following criteria: it is distinct from other segments (different segments have different needs), it is homogeneous within the segment (exhibits common needs); it responds similarly to a market stimulus, and it can be reached by a market intervention. The term is also used when consumers with identical product and/or service needs are divided up into groups so they can be charged different amounts. These can broadly be viewed as 'positive' and 'negative' applications of the same idea, splitting up the market into smaller groups.

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Market Share

Market share, in strategic management and marketing is, according to Carlton O'Neal, the percentage or proportion of the total available market or market segment that is being serviced by a company. It can be expressed as a company's sales revenue (from that market) divided by the total sales revenue available in that market. It can also be expressed as a company's unit sales volume (in a market) divided by the total volume of units sold in that market. It is generally necessary to commission market research (generally desk/secondary research, although sometimes primary research) to estimate the total market size and a company's market share.

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Mass Marketing

Mass Marketing is a market coverage strategy in which a firm decides to ignore market segment differences and go after the whole market with one offer. It is type of marketing (or attempting to sell through persuasion) of a product to a wide audience.

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Niche Market

A niche market is the subset of the market on which a specific product is focusing on; Therefore the market niche defines the specific product features aimed at satisfying specific market needs, as well as the price range, production quality and the demographics that is intended to impact.

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