MARKETING

BUSINESS FLASHCARDS

Marketing

Identifying customer wants and satisfying them profitably

Customer

A person, business or other organisation which buys goods or services from a business

Customer loyalty

When existing customers continually buy products from the same business

Customer relationships

Communicating with customers to encourage them to become loyal to the business and its products

Market share

The percentage of total market sales held by one brand or business

Consumer

Buys goods or services for personal use- not to re-sell

Mass market

Where there is a large number of sales of a product

Niche market

Usually specialised, segment of a much larger market

Market segment

Identifiable sub-group of a whole market in which consumers have similar characteristics or preferences

Market research

The process of gathering, analyzing and interpreting information about a market

Product-orientated business

Whose main focus of activity is on the product itself

Market-orientated business

Carries out market research to find out what consumer wants before a product is developed and produced

Marketing budget

A financial plan for the marketing of a product or product range for some specific period of time.

Primary research

The collection and collation of original data via direct contact with potential or existing customers

Secondary research

Uses information that has already been collected and is

Questionnaire

A set of questions to be answered as a means of collecting data for market research

Online surveys

Require the target sample to answer a series of questions over the internet

Interviews

Involve asking individuals a series of questions, often face-to-face or over the phone

Focus group

A group of people who are representative of the target market

Sample

Group of people who are selected to respond to a market research exercise, such as a questionnaire

Random sample

When people are selected at random as a source of information for market research

Quota sample

When people are selected on the basis of certain characteristics (such as age, gender or income) as a source of information for market research

Marketing mix

Describes all the activities which go into marketing a product or service

Unique selling point

Special feature of a product that differentiates it from the products of competitors

Brand name

The unique name of a product that distinguishes it from other brands

Brand loyalty

When consumers keep buying the same brand again and again instead of choosing a competitor's brand

Brand image

An image or identity given to a product which gives it a personality of its own and distinguishes it from its competitors' brands

Packaging

The physical container or wrapping for a product used for promotion and selling appeal

Product life cycle

Describes the stages a product will pass through from its introduction, through its growth until it is mature, and then finally, its decline

Extension strategy

A way of keeping a product at the maturity stage of the life cycle and extending the cycle

Cost-plus pricing

The cost of manufacturing the product plus a profit mark-up

Competitive pricing

When the product is priced in line with or just below competitors' prices to try to capture more of the market

Penetration pricing

When the price is set lower than the competitors' prices in order to be able to enter a new market

Price skimming

Where a high price is set for a new product on the market

Promotional pricing

When a product is sold at a very low price for a short period of time

Dynamic pricing

When businesses change product prices, usually when selling online, depending on the level of demand

Price elastic

Demand is where consumers are very sensitive to changes in price

Price in-elastic Demand

Where consumers are not sensitive to changes in price

Distribution channel

The means by which a product is passed from the place of production to the consumer

Agent

An independent person or business that is appointed to deal with the sales and distribution of a product or a range of products

Promotion

Where marketing activities aim to raise customer awareness of a product or a brand, generating sales and helping to create brand loyalty

Advertising

Paying for communication with potential customers about a product to encourage them to buy it

Informative advertising

Where the emphasis of advertising or sales promotion is to give full information about the product

Persuasive advertising

Advertising or promotion which is trying to persuade the consumer that they really need the product and should buy it

Target audience

Refers to people who are potential buyers of a product or a service

Sales promotions

Incentives such as special offers aimed at consumers to achieve short-term increases in sales

Marketing budget

A financial plan for the marketing of a product or a product range for a specified period of time

Social media marketing

Creating and sharing content on social media networks in order to achieve marketing and branding goals

Viral marketing

When consumers are encouraged to share information online about the products of a business

E-commerce

Buying and selling of goods and services using computer systems linked to the internet and apps on mobile (cell) phones

Marketing strategy

A plan to combine the right combination of the four elements of the marketing mix for a product or a service to achieve a particular marketing objective(s)