Unit 3: Marketing

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WHAT IS MARKETING?
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1 of 80
Marketing
management task that links the business to the customer by identifying and meeting the needs of customers profitably- it does this by getting the right product at the right price to the right place at the right time (4 P's prodict,place,promotion...)
2 of 80
Marketing objectives
the goals set for the marketing department to help the business achieve its overall objectives
3 of 80
Marketing strategy
long-term plan established for achieving marketing objectives
4 of 80
Market orientation
an outward-looking approach basing product decisions on customer demand, as established by market research
5 of 80
Product orientation
an inward-looking approach that focuses on making products that can be made- or have been made for a long time- and then trying to sell them
6 of 80
Asset-led marketing
an approach to marketing that bases strategy on the firm's existing strenghts and assets instead of purely on what the customer wants
7 of 80
Societal marketing
approach that considers not only the demands of consumers but also the effects on all members of the public (society) involved in some way when the firm meets these demands
8 of 80
Demand
the quantity of a product that consumers are willing and able to buy at a given price in a time period
9 of 80
Supply
the quantity of a product that firms are prepared to supply at a given price in a time period
10 of 80
Equilibrium price
the market price that equates supply and demand for a product
11 of 80
Market size
the total level of sales of all producers within a market
12 of 80
Market growth
the percentage change in the total size of a marker (volume or value) over a period of time
13 of 80
Market share
the percentage of sales in the total market sold by one business. Formula= (firm's sales in time period / total market sales in time period) X 100
14 of 80
Direct competition
businesses that provide the same or very similar goods or services
15 of 80
USP- Unique Selling Point
the special feature of a product that differentiates it from competitor's products
16 of 80
Product differentiation
making a product distinctive so that it stands out from competitor's products in consumer's perception
17 of 80
Niche marketing
identifying and exploiting a small segment of a larger market by developing products to suit it
18 of 80
Mass marketing
selling the same products to the whole market with no attempt to target groups within it
19 of 80
Market segment
a sub-group of a whole market in which consumers have similar characteristics
20 of 80
Market segmentation
identifying different segments within a market and targeting different products or services to them
21 of 80
Consumer profile
a quantified picture of consumers of a firm's products, showing proportions of age groups, income levels, location, gender and social class
22 of 80
MARKET RESEARCH
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23 of 80
Market research
process of collecting, recording and analysing data about customers, competitors and the market
24 of 80
Primary research
collection of the first-hand data that is directly related to a firm's needs
25 of 80
Secondary research
collection of data from second-hand sources eg: web
26 of 80
Qualitative research
research into in depth motivations behind consumer buying behaviour or opinions
27 of 80
Quantitative research
research that leads to numerical results that can be statistically analysed
28 of 80
Focus groups
group of people who are asked about their attitude towards a product, service, advertisement or new style of packaging
29 of 80
Sample
group of people taking part in a market research survey selected to be representative of the overall target market
30 of 80
Random sampling
every member of the target population has an equal chance of being selected
31 of 80
Systematic sampling
every nth item in the target population is selected
32 of 80
Stratified sampling
draws a single sample from a specified sub-group or segment of the population and uses random sampling to select an appropriate number from each stratum
33 of 80
Quota sampling
when the population has been stratified (organised in different layers) and the interviewer selects an appropriate number or respondents from each stratum
34 of 80
Cluster sampling
using one or a number of specific groups to draw samples from and not selecting from the whole population, eg: using one town
35 of 80
Open questions
those that invite a wide-ranging or imaginative response- results will be difficult to collate and present numerically
36 of 80
Closed questions
questions to which a limited number or pre-set answers is offered
37 of 80
Arithmetic mean
calculated by totalling all the results and dividing by the number of results
38 of 80
Mode
the value that occurs most frequently in a set of data
39 of 80
Median
the value of the middle item when data has been ordered or ranked. divides data into two equal parts. formula= nº of values/2
40 of 80
Range
the difference between the highest and the lowest value
41 of 80
Inter-quartile range
the range of the middle 50% of the data
42 of 80
MARKETING MIX-PRODUCT & PRICE
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43 of 80
Marketing mix
the four key decisions that must be taken in the effective marketing of a product
44 of 80
Customer relationship management (CSM)
using marketing activities to establish successful customer relationships so that existing customer loyalty can be maintained
45 of 80
Brand
an identifying symbol, name, image or trademark that distinguishes a product from its competitors
46 of 80
Intangible attributes of a product
subjective opinions of customers about a product that can't be measured or compared
47 of 80
Tangible attributes of a product
measurable features of a product that can be easily compared with other products
48 of 80
Product
the end result of the production process sold on the market to satisfy customer needs
49 of 80
Product positioning
the customer perception of a product/service compared to its competitors
50 of 80
Product portafolio analysis
analysing the range of existing products of a business to help allocate effectively resources between them
51 of 80
Product life cycle
The pattern of sales recorded by a product from launch to withdrawal from the market. Introuction, Growth, Maturity and Decline.,
52 of 80
Consumer durable
manufactured product that can be reused and is expected to have a long life, eg:car
53 of 80
Extension strategies
marketing plans to extend the maturity stage of the product before a brand new one is needed
54 of 80
Price elasticity of demand (PED)
measures the responsiveness of demand following a change in price. Formula= % change in quantity/ % change in price
55 of 80
Mark-up pricing
adding a fixed mark up for profit to the unit price of a product
56 of 80
Target pricing
setting a price that will give a required rate of return at a certain level of output/sales
57 of 80
Full-cost pricing
setting a price by calculating a unit cost for the product (allocated fixed and variable costs) and then adding a fixed profit margin
58 of 80
Contribution-cost pricing
setting prices based on the variable costs of making a product in order to make a contribution towards fixed costs and profit.
59 of 80
Competition-based pricing
a firm will base its price upon the price set by its competitors
60 of 80
Dynamic pricing
offering goods at a price that changes according to the level of demand and the customer's ability to pay
61 of 80
Penetration pricing
setting a relatively low price often supported by strong promotion in order to achieve a high volume of sales, then slowly increasing the price once established in the market
62 of 80
Market skimming
setting a high price for a new product when a firm has a unique product with low price elasticity of demand
63 of 80
MARKETING MIX - PROMOTION & PLACE
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64 of 80
Promotion
the use of advertising, sales promotion, personal selling, direct mail, trade fairs, sponsorship and public relations to inform customers and persuade them to buy.
65 of 80
Promotion mix
the combination of promotional techniques that a firm uses to sell a product
66 of 80
Above-the-line promotion
form of promotion that's paid for to communicate with consumers and is undertaken by another business
67 of 80
Advertising
paid for communication with consumers to inform and persuade. Eg: Tv adversiting
68 of 80
Below-the-line promotion
not directly paid for means of communication, but based on short term incentives to purchase
69 of 80
Sales promotion
incentives such as special offers or deals directed at customers or retailers to achieve short term increase in sales and repeat purchases by consumers
70 of 80
Personal selling
member of the sales staff communicates with one consumer with the aim of selling the product and establishing a long term relationship between company and customer
71 of 80
Sponsorship
payment by a company to the organisers of an event or team/individuals so that the company's name becomes associated with the event/individual
72 of 80
Public relations
deliberate use of free publicity provided by newspapers, TV and other media to communicate with and achieve understanding by the public
73 of 80
Branding
the strategy of differentiating products from competitor's by creating an identifiable image and clear expectations about a product
74 of 80
Marketing or promotion budget
the financial amount made available by a business for spending on marketing/promotion during a certain time period
75 of 80
Channel of distribution
chain of intermediaries a product passes through from producer to final customer
76 of 80
Internet (online) marketing
advertising and marketing activities that use the internet, email and mobile communications to encourage direct sales via electronic commerce /E-commerce
77 of 80
E-commerce
the buying and selling of goods and services by businesses and consumers through an electronic medium
78 of 80
Viral marketing
the use of social media sites or text messages to increase brand awareness or self products
79 of 80
Integrated marketing mix
the key marketing decisions complement each other and work together to give customers a consistent message about the product
80 of 80

Other cards in this set

Card 2

Front

management task that links the business to the customer by identifying and meeting the needs of customers profitably- it does this by getting the right product at the right price to the right place at the right time (4 P's prodict,place,promotion...)

Back

Marketing

Card 3

Front

the goals set for the marketing department to help the business achieve its overall objectives

Back

Preview of the back of card 3

Card 4

Front

long-term plan established for achieving marketing objectives

Back

Preview of the back of card 4

Card 5

Front

an outward-looking approach basing product decisions on customer demand, as established by market research

Back

Preview of the back of card 5
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