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Marketing

The process through which a product / service moves from being an idea to getting to a consumer

Market

A place where buyers and sellers meet to exchange goods or services

Mass market

Where a business sells to the largest part of the market, where there are many similar products offered by competitors

Niche market

Where a business targets a smaller segment of a larger market, where customers have specific needs and wants

Market value

The total value of sales for businesses in a particular market for a product / service

Market share

The percentage of the sales in a particular market that belong to a business. For example; Tesco has 28% share of the UK Supermarket

Market growth

The percentage by which the total value of a market has increased (or decreased if negative growth)

Competition

Other businesses that provide a similar product / service

Market segmentation

The process of dividing a market into parts that reflect different needs and wants

Market segment

One specific group of consumers that have specific needs and wants

Market research

Collection of data to obtain insight into the needs and wants of customers, or the way a market is structured

Primary research / data

Research data collected first hand for a specific purpose

Secondary research / data

Research data that already exists and has been used for a different purpose

Quantitative research / data

Research based on numerical data

Qualitative research / data

Research based on views and opinions (non-numeric)

Market positioning

The place a product occupies in customer minds relative to competing products

Product differentiation

Where a product has something that makes it different from competing products

Adding value

The process of adding value to the cost of inputs through the production process in order to charge a higher price

Demand

The quantity that customers are willing and able to buy at a given price in a given period of time

Demand curve

The quantity demanded of a product at different price points

Supply

The quantity that businesses / producers are willing and able to supply at a given price in a given time period

Supply curve

The quantity willing to be supplied of a product at different price points

Subsidy

Any form of government support - financial or otherwise - offered to producers or consumers to encourage supply or demand

Market equilibrium

When there is a balance between demand and supply in a market

Market demand

The total quantity demanded for a product in a market by all customers

Market supply

The total quantity of a product supplied to a market by suppliers

Price elasticity

The extent to which the quantity of a product demanded is affected by a change in price

Income elasticity

The extent to which the quantity of a product demanded is affected by a change in income

Product

Any good or service that is capable of meeting needs and wants of consumers

Product life cycle

A model predicting the stages a product goes through from development to decline

Product life cycle - Introduction

The stage when a new product is launched onto a market to lower sales and higher advertising

Product life cycle - Growth

The stage when sales rise and a product / service becomes more popular with greater market share

Product life cycle - Maturity

The stage where sales begin to peak and slow down, potentially as competitors enter a market

Product life cycle - Decline

The stage where sales are falling and profits decline until the product is eventually removed from the market

Extension strategy

A strategy put in place to extent the length of a product life cycle

Boston Matrix

A model used to analyse the strategic position of a product and brand portfolio, by looking at market share and market growth

Boston Matrix - Star Product

A product that has high market share and high market growth. They have a large market share over competition in a market that is growing.

Boston Matrix - Cash Cow

A product that has high market share but in a low growth market. They are successful, established products that won't require much investment

Boston Matrix - Problem Child / Question Mark

A product that has low market share but operate in a high growth market. These products have potential but require investment to hopefully gain market share and become Stars

Boston Matrix - Dog Product

A product that has low market share and operate in a low growth market. This means these products might break even but will rarely be worth investing in.

Design Mix

The process of designing a product to meet customer's needs and wants using three main elements: Function, Aesthetics and Economic Cost

Design Mix - Aesthetics

How a product is designed to look in order to appeal to a consumer and offer differentiation

Design Mix - Function

The intended way a product works reliably

Design Mix - Economic Cost

The cost of producing the product, and being able to add value to the product to make a profit when sold

Brand

A product that is easily distinguished from other products (through a logo, style, slogan etc)

Sales promotion

Tactical incentives to encourage people to purchase a product

Advertising

Paid for communication aimed at encouraging people to purchase a product

Direct marketing

Sending promotional materials and messages directly to the target audience

Promotional mix

The mix of activities and approaches taken when promoting a product

Pricing strategy