Unit 4 Marketing NEW SPEC

Market Segmentation

Dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors, and who might require separate products or marketing programs

Target Market

a set of buyers sharing common needs or characteristics that the company decides to serve

Position map (perception map)

is a visual aid that shows customer perceptions of a product or brand in relation to others in the market, often by comparing perceptions about price and quality.

niche market

A smaller part of a larger market in which customers have more specific needs and wants

mass market

A very large market in which products with mass appeal are targeted

Unique selling point

Any aspect of or characteristic of a product that differentiates it from the competition. Firms will often want to stress this in their marketing.

Differentiation

making a product different from other similar products

Market Orientation

an organization wide commitment to researching and responding to customer needs

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

market share

the percentage of sales revenue of the firm to the total sales revenue of all firms in the industry, including the firm itself

Market share formula

Sales of business / total sales in market x 100

Market growth

The percentage change in the total size of a market (volume or value) over a period of time.

Market leadership HL

when a business has the highest market share of all firms that operate in that market

Marketing Planning

the process of formulating appropriate strategies and preparing marketing activities to meet marketing objectives

sales forecasting HL

a form of research that estimates how much of a product will sell over a given period of time

market research

The activity of gathering information about consumers' needs and preferences.

Primary market research

Collection of information first-hand for a specific purpose

survey

the collection of data by having people answer a series of questions

interview

A face-to-face or telephone questioning of a respondent to obtain desired information.

focus group

A small group of people who meet under the direction of a discussion leader to communicate their opinions about an organization, its products, or other given issues.

Observation

The act of noticing and describing events or processes in a careful, orderly way.

Secondary Research

Analyzing information from previously conducted research projects.

Market Analysis

A systematic study of the market

academic journals

periodicals about scholarly topics, with articles typically edited and written by professors and/or other university-affiliated researchers

Government publications

a type of secondary market research, referring to official documents and publications released by government entities and agencies

Media articles

a type of secondary market research referring to the documents in print or online media. they are written by trained journalists and authors

online content

any material available on the Web. Online content includes text, images, animations, music and videos

Qualitative Research

seeks in-depth, open-ended responses, not yes or no answers

Quantitative Research

Research that provides data that can be expressed with numbers, such as ranks or scales.

Sampling

The process of selecting representative units from a total population

quota sampling

A nonprobability sampling technique in which researchers divide the population into groups and then arbitrarily choose participants from each group

random sampling

a sample that fairly represents a population because each member has an equal chance of inclusion

convenience sampling

using a sample of people who are readily available to participate

Product Life Cycle

describes the stages a new product goes through in the marketplace: introduction, growth, maturity, and decline

Product portfolio

The range of products or brands provided by a business

Marketing Mix

the set of tactical marketing tools - product, price, place, and promotion - that the firm blends to produce the response it wants in the target market

Extension strategies

these are marketing plans to extend the maturity stage of the product before a brand new one is needed

Branding

The promotion of a product or service by identifying it with distinct characteristics (usually associated with public perception, quality or effectiveness)

brand awareness

Measures how many consumers in a market are familiar with the brand and what it stands for; created through repeated exposures of the various brand elements (brand name, logo, symbol, character, packaging, or slogan) in the firm's communications to consumers.

Brand Development

A long-term product strategy that involves strengthening the name and image of a brand to boost its appeal and sales.

brand loyalty

a favorable attitude toward and consistent purchase of a single brand over time

brand value

A brand's worth in terms of income, potential income, and prestige.

price

The amount of money exchanged for a good or service

Cost-plus pricing (markup pricing)

adding a standard markup to the cost of the product

penetration pricing

setting a low initial price on a new product to appeal immediately to the mass market

loss leader

An item priced at or below cost to draw customers into a store.

predatory pricing

selling a product below cost to drive competitors out of the market

premium pricing

a competitor-based pricing method by which the firm deliberately prices a product above the prices set for competing products to capture those consumers who always shop for the best or for whom price does not matter

dynamic pricing HL

adjusting prices continually to meet the characteristics and needs of individual customers and situations

Competitive pricing HL

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

Contribution pricing HL

Price is set to cover average variable costs per unit and a sum to pay towards fixed costs and profit

price elasticity of demand HL

a measure of how much the quantity demanded of a good responds to a change in the price of that good, computed as the percentage change in quantity demanded divided by the percentage change in price

promotion

Communication by marketers that informs, persuades, and reminds potential buyers of a product in order to influence an opinion or elicit a response

Above the line promotion

a form of promotion that is undertaken by a business by paying for communication with consumers using mass media

Below the line promotion

A promotional effort that includes in-store promotions, coupons, dealer discounts, and product placement.

Through the line promotion

An integrated marketing approach that includes both above-the-line and below-the-line elements.

Social Media Promotion

utilization of social media or social networks to market a product, company, or brand

Place (Distribution)

part of the marketing mix concerned with getting products from producers to consumers

retailer

An intermediary who sells to consumers

wholesaler

A type of business that buys goods in large amounts and resells them to other businesses in smaller lots.

agent

a seller who represents buyers or sellers on a relatively permanent basis, performs only a few functions, and does not take title to goods

distributer

an agent who supplies goods to stores and other businesses that sell to consumers.

People in the marketing mix

The behaviour and attitude of staff who determine the level of customer satisfaction in business transactions.

Physical Evidence

What can be seen as you enter a service such as lighting, features of the building.

Processes in the marketing mix

The systems employed by the firm to ensure their services are successfully delivered to customers.

International marketing HL

Selling products in markets other than the original domestic market