business management chapter 4

random sampling

random sampling

every member of the target population has an equal chance of being selected

marketing

management task that links business to the customer by identifying and meeting the needs of customers profitably

market orientated

an outward-looking approach that requires market research and analysis to indicate present and future consumer demand, aiming to produce what consumers want rather than try to sell them a product they may not want to buy

market growth

measures how rapidly a market is growing from one period to the next

marketing plan

formal written document which outlines in detail how the business unit intends to achieve marketing objectives derived from overall business objectives

consumer profile

quantified picture of consumers of a firm's products, showing proportions of age groups, income levels, location, gender and social class

market segmentation

identifying different segments within a market and targeting different products or services to them

niche marketing

identifying and exploring a small segment of a larger market by developing products to suit it

unique selling point (USP)

special feature of a product or customer service that makes it different from its competitors

competitive advantage

an advantage a business has over rivals gained by offering consumers greater value

quota sampling

gathering data from a number of people chosen out of a specific sub-group

convenience sampling

drawing representative selection of people because of the ease of their volunteering or selecting people because of their availability or easy access

qualitative research

research into the in-depth motivations behind consumer buying behavior or opinions

quantitative research

research that leads to numerical results that can be presented and statistically analysed

coordinated marketing mix

key marketing decisions that complement each other and work together to give customers a consistent message on the product

cost-plus pricing

Adding a fixed mark-up to the unit price of a product to cover up for overhead costs and for profit

penetration pricing

setting a relatively low price often supported by strong promotion to achieve a high volume of sales

loss leaders

products sold at a very low price to encourage consumers to buy other products

predatory pricing

deliberately undercutting competitors prices to force them out of market

above the line promotion

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

below the line promotion

Promotion that is not a directly paid-for means of communication but based on targeting individual marketing segments or individual consumers with incentives to purchase

channel distribution

the chain of intermediaries a product passes through from producer to final consumer

market leadership

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

product orientated

an inward-looking approach that focuses on making products that can be made - or have been for a long time - and trying to sell them

market size

the total level of sales of all producers within a market, measured in 2 ways
- volume of sales (units sold)
- value of goods sold (revenue)

target market

segment of market that a particular product is aimed at

market segment

subgroup of a market made up of consumers with similar characteristics, tastes and preferences

marketing mix

key decisions that must be taken in the effective marketing of a product and is a major factor in influencing whether a business can sell the product profitably

mass marketing

selling the same products to the whole market with no attempt to target groups within it

market research

process of collecting, recording and analysing data about customers, competitors and the market

premium pricing

setting a price higher than that of competitors with the aim of developing a superior image of a product

brand loyalty

the faithfulness of consumers to a particular brand as shown by their repeat purchases irrespective of the marketing pressure from competing brands