13.5 Marketing Vocabulary

Marketing

Identifying, anticipating, and meeting the needs and wants of customers and society. The way an organization communicates the value it can bring to its target audience.

Marketing mix

The seven Ps of marketing:

product, price, promotion, place, people, process and physical evidence

Market orientation

An approach by used companies that seek to determine first what customers need and want and then to make, design, and deliver products or services based on the customers' needs and wants.

Product orientation

An approach by companies that focuses attention and resources on the product that they produce, typically by making the product as high quality or as special as possible. Makes them concentrate on offering the highest quality or the most special product for its target market, rather than the quantity of sales.

Market share

The percentage of a given market that is controlled by a particular company or product. Can be calculated based upon either total sales value or, with high-cost items such as automobiles, by volume (in terms of total units).

Market growth

The increase in the number of consumers who buy a product or service. An increase in the number of products sold.

Segmentation

The process of dividing a broad market group into various segments (age, interests, special needs, location, and so on). Allows companies to shape their marketing approaches in ways that will better allow them to meet the interests of particular segments.

Target market

A particular group of customers or potential customers that a company is trying to reach. Clarity about which target market a company wants to reach provides opportunities to shape marketing strategies.

Niche market

A small part of a larger market. In niche markets, customers have very specialized needs or wants that are different from those of the larger market. Often, products sold in niche markets are more expensive than in mass markets, precisely because products for niche markets are not suitable for mass production and sale.

Mass market

A market for goods that are produced in very large quantities. Because of economies of scale, products sold in mass markets are less expensive than goods produced for niche or highly specialized markets.

Unique selling point (or unique selling proposition or USP)

Any aspect of the organization, brand or product that enables differentiation from competitors in consumers' minds.