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Marketing Key Terms

  • Primary Resarch: First hand research collected by the business itself
  • Secondary Research: Data from second hand sources
  • Qualitative Data: Data not expressed numerically
  • Quantitative data: Data expressed numerically
  • Socio-Economic Groups: consumers divided into class
  • Market Segments: portions of the market with similar charecteristics
  • Product trial: Consumers sampling the products for the first time
  • Customer Loyalty: When customers buy without checking the price, a motivated and long term decision to purchase a certain brand.
  • Brand: A product made unique by its image or design.
  • Extension Strategies: Strategies which extend the product life cycle of a product, to prolong maturity and to prevent decline in sales
  • Family branding: Where each product is established under one brand
  • Line branding: Where each product has an individual brand
  • Product differentiation: Making a product appear different from competitors
  • USP: A feature that your product has which your competitors doesn't
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Adding Value

  • Adding value allows businesses to increase the price that consumers are willing to pay for a product.
  • Customers need to perceive that the product is better than it actually is= So a higher price can be charged
  • Value added= Price and cost of bought in materials

Ways of adding value:

  • Convenience and speed (e.g. sandwich)
  • Good design
  • High quality manufacture e.g. Lexus vs Lada
  • Brand name
  • USP
  • After sales care (Warranty)
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Market Mapping

  • Positioning of a brand influenced by the perceptions of the customer rather than the business itself
  • A comparison to other brands in the market

2 stages:

  • Identify two key variables within the market
  • plot existing brands in the market within the key variables

Market Segment

  • A market segment is a part of the market which contains a group of buyers .
  • E.g. Age, Socio economic groups, ethnicity/ culture, gender
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