Theme 1

  • Created by: 99mscott
  • Created on: 17-05-18 11:56
Mass marketing
An attempt to appeal to an entire market with one basic marketing strategy utilising mass distribution and mass media.
1 of 85
Niche market
Targeting a small segment of a larger market with a specialised product or service designed to meet distinctive needs.
2 of 85
Marketing objective
A target or goal that an organisation hopes to achieve; should be SMART.
3 of 85
Marketing strategy
A medium to long term plan for how to achieve marketing objectives; POISE. Profitable, Offensive, Integrated, Strategic and Effectively executed.
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Effective marketing
Identify the target market and conduct focused market research and advertising spending.
5 of 85
Market segmentation
Dividing a market up by customers' age, gender or income to find under-served areas eg
6 of 85
Short-termist marketing
When a firm pursues strategies that could boost profit in the short-run even if these strategies damage the firm's long-run profitability.
7 of 85
Marketing mix
The right blend of product, price, promotion and place.
8 of 85
Generic brands
Brands that are so well known that customers say the brand name when they mean the product, ie. Coke.
9 of 85
Product differentiation
The extent to which customers perceive your brand as being different to others.
10 of 85
Bias
A factor that causes research findings to be unrepresentative of the whole population ie. excited interviewers or misleading questions.
11 of 85
Primary research
finding out information from customers first-hand eg. questionnaires.
12 of 85
Economies of scale
Factors that cause costs per unit to fall when a firm operates at a higher level of production for example, buying raw materials in bulk.
13 of 85
Secondary research
finding out information that has already been gathered eg. government estimates/census.
14 of 85
Franchise
A business that sells the rights to the use of its name and trading methods.
15 of 85
Sample size
The number of people interviewed or questioned. This should be large enough to give confidence that findings are representative of the whole population.
16 of 85
Inferior goods
Demand and sales fall if income rises OR demand and sales increase if income falls.
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Luxury goods
Sales rise rapidly when incomes increase but may fall rapidly when incomes decrease.
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Normal goods
Sales move in line with changes in consumer income, ie. sales at dry cleaning outlets.
19 of 85
Market map
A grid plotting where each existing brand sits on scales based on two important features of the market eg. clothing industry: high quality/low quality and high price/low price
20 of 85
Price elasticity
The extent to which a product's demand changes when its price is changed.
21 of 85
Seasonal variations
Changes in the value of a variable (eg sales) in relation to the seasons.
22 of 85
Unique selling point (USP)
A consumer benefit that no rival can match, often protected by a strong patent.
23 of 85
Substitutes
Products or services in competition with each other, so consumers can easily exchange one for the other.
24 of 85
Complementary goods
Products bought in conjunction with each other ie. cars and petrol. A rise in the price of one product causes demand for the other to fall.
25 of 85
Market price
The price of a product that has been established by the market ie. where supply is equal to demand. Can be chosen by the market leader.
26 of 85
Supply chain
The whole path from suppliers of raw materials through production and storage on to customer delivery.
27 of 85
Price-elastic
A product with demand that is highly sensitive to changes of price.
28 of 85
Supply curve
A line showing the quantity of goods a firm wants to provide at different price levels. The higher the price, the more firms are willing and able to produce.
29 of 85
Price-inelastic
A product with demand that is relatively insensitive to changes in price.
30 of 85
Commodity markets
Undifferentiated products such as rice, oil or gold. The principle is that every kilo is the same as every other kilo so traders can buy or sell without worrying which kilo they are dealing in.
31 of 85
Recession
Two or more successive quarters of negative economic growth
32 of 85
Demand curve
A line showing the demand for a product at different prices; the higher the price, the lower the demand.
33 of 85
Prototype
A test model of a planned design used to see if it functions properly with durability, safety and reliability.
34 of 85
External constraint
Something outside the firm's control that can prevent it from reaching its objectives.
35 of 85
Sustainability
Materials that will still be around for future generations eg. planting a tree for every one that you cut down for production.
36 of 85
Predatory pricing
Pricing low with the deliberate intention of driving a competitor out of business.
37 of 85
Capacity utilisation
Measures actual usage of business facilities as a percentage of the maximum possible eg. a half-empty hotel has 50% capacity utilisation.
38 of 85
Impulse buying
Purchasing items in an unplanned way.
39 of 85
Corporate brand
A brand that represents the whole company as well as its products eg. Nestle.
40 of 85
Crowdfunding
obtaining external finance from many individual, small investments, usually through an online appeal.
41 of 85
Opportunity cost
The cost of missing out on the next best alternative when making a decision.
42 of 85
Long tail
the huge number of tiny businesses appealing to minority tastes that can find a profitable existence online because they can target the whole planet, not just the local area.
43 of 85
Loss leader
Pricing a product below cost in order to attract further, profitable business eg. PS3 and PS4 sold at a loss in order to benefit from selling games and accessories.
44 of 85
Barrier to entry
Factors that make it hard for new firms to break into an existing market eg. strong brand loyalty or expensive research and development.
45 of 85
Wholesaler
The middleman between the producer and retailer who breaks down bulk from container loads into manageable amounts.
46 of 85
E-commerce
Purchasing/selling transactions carried out online.
47 of 85
Dog
A product that has a low share of a low-growth market.
48 of 85
Extension strategy
Marketing activities used to prevent sales from declining eg. Coke Zero.
49 of 85
Portfolio analysis
An analysis of the market position of the firm's existing products; used as part of the marketing planning process.
50 of 85
Problem child
A product that has a small share of a fasting growing market.
51 of 85
Star
A product that has a high share of a high growth market.
52 of 85
Homogenous goods
No points of differentiation and therefore each one is the same as every other, meaning that competition must focus on price. eg. fruits and vegetables.
53 of 85
Labour turnover
The number of staff leaving a company as a percentage of the total number employed.
54 of 85
Flexible approach
An approach to operations that implies a move away from mass production towards batch production, the use of machinery that can be quickly reprogrammed to carry out a range of tasks and the creation of a multi-skilled and flexible workforce.
55 of 85
Outsourcing
Taking a task traditionally run by your own staff eg. security and hiring people from outside of the firm.
56 of 85
Hot-desk
Provides temporary office space for homeworkers to use when they come to the main office; used by multiple different staff at the same time.
57 of 85
Redeployment
Retraining a staff member to give the skills required to take on a new job role.
58 of 85
Zero hours contracts
Agree employee duties and hourly pay rates but offer no guarantee of any work.
59 of 85
Subcontracting
When another business is used to perform or supply certain aspects of a firm's operations.
60 of 85
Line manager
Responsible for meeting specific business targets and responsible for specific tasks.
61 of 85
Induction training
Familiarises new employees with key aspects of jobs eg. health and safety, payment arrangements and holiday entitlement.
62 of 85
Matrix structure
Staff work in project teams in addition to their own department, staff can be answerable to more than one line manager
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Off-the-job training
Employees leave their normal duties to receive instruction either within the firm or outside such as college/university.
64 of 85
Span of control
The number of staff who are controlled by a manager.
65 of 85
Division of labour
Subdividing a task into a number of activities, enabling workers to specialise and therefore become very efficient at a small, repetitive task.
66 of 85
Hygiene factors
Pay, working conditions and social status - potential causes of dissatisfaction according to Herzberg.
67 of 85
Delayering
Removing a layer of management from the organisational structure.
68 of 85
Job satisfaction
The sense of well-being and achievement that stems from a satisfying job.
69 of 85
Piece rate
Paying workers for each item they produce.
70 of 85
Remuneration
All financial rewards eg. pay, pensions, bonuses and fringe benefits.
71 of 85
Autocratic manager
Retain most of the authority themselves - do not delegate or share information much to their employees. Tell them what to do.
72 of 85
Trade union
An organisation that represents the interests of staff at the workplace .
73 of 85
Democratic manager
Takes into consideration the views of their subordinates when making decisions - employees are actively involved.
74 of 85
Flexitime
Flexibility over the arrival and leaving times as long as they complete a set number of hours.
75 of 85
Kaizen
Continuous improvement usually achieved by workforce engagement and involvement.
76 of 85
Hubris
Overwhelming arrogance leading to blindness to risks or mistakes.
77 of 85
Paternalistic manager
Believes he or she knows best for employees and tell them what to do, after explaining why they have made that decision. Shows concern for employees.
78 of 85
Staff retention
Keeping staff, measured as staff still remaining at the end of the year as a percentage of total staff employed that year.
79 of 85
Corporate objectives
SMART targets for the whole business, eg. profits rise by 20% at the end of the year.
80 of 85
Creditors
those owed money by a business eg suppliers and banks.
81 of 85
Mission statement
A powerfully expressed message that explains the business aims clearly yet motivationally.
82 of 85
Registrar of companies
Government department which can allow firms to become incorporated.
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Sole trader
A business which is owned by one person of unlimited liability.
84 of 85
Trade off
Accepting less of one thing to achieve more of another, eg. lower quality in exchange for better price. The opportunity cost is what is missed, eg. higher quality could improve brand image.
85 of 85

Other cards in this set

Card 2

Front

Niche market

Back

Targeting a small segment of a larger market with a specialised product or service designed to meet distinctive needs.

Card 3

Front

Marketing objective

Back

Preview of the front of card 3

Card 4

Front

Marketing strategy

Back

Preview of the front of card 4

Card 5

Front

Effective marketing

Back

Preview of the front of card 5
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