ib business management unit 4

Marketing

the management process of identifying, anticipating, and satisfying consumer needs profitably.

Market orientation

a business approach focused on meeting the needs and wants of customers.

Product orientation

a business approach focused on product quality and innovation rather than customer needs.

Commercial marketing

marketing aimed at meeting customer needs to generate profit.

Social marketing

marketing that considers not only customer needs but also society's well-being.

Marketing mix

the combination of product, price, place, and promotion used to market a product.

Market share

a firm's sales as a percentage of the total market sales.

Market leadership

when a business has the highest market share in an industry.

Market growth

the increase in the size or sales volume of a market over time.

Niche market

a small and specific segment of a larger market.

Mass market

a large market with a wide customer base.

Product differentiation

the process of distinguishing a product from competitors.

Unique selling point (USP)

a product feature that makes it stand out from competitors.

Market segmentation

dividing a market into distinct groups with similar characteristics.

Demographic segmentation

segmenting the market based on variables like age, gender, or income.

Geographic segmentation

dividing the market by location or region.

Psychographic segmentation

dividing the market based on lifestyles, values, or personality.

Target market

the specific group of customers a business aims to serve.

Consumer profile

a detailed description of a typical customer in the target market.

Positioning

how a product is perceived relative to competing products.

Perceptual map

a visual representation of customer perceptions of a product compared to competitors.

Marketing plan

a document outlining marketing objectives and strategies.

Product

the good or service offered to customers.

Product life cycle

the stages a product goes through from development to decline.

Development

the stage where a product is researched and designed but not yet sold.

Introduction

the stage where the product is launched and sales begin.

Growth

the stage where sales increase rapidly.

Maturity

the stage where sales peak and market saturation occurs.

Decline

the stage where sales fall due to changes in trends or competition.

Extension strategies

methods used to prolong the life of a product (e.g. new markets, rebranding).

Brand

a name, symbol, or design that identifies and differentiates a product.

Branding

the process of creating and maintaining a brand image.

Brand awareness

the extent to which consumers recognize a brand.

Brand loyalty

the tendency of consumers to keep buying the same brand.

Pricing strategies

approaches to setting product prices.

Cost-plus pricing

adding a markup to the cost of producing a product.

Penetration pricing

setting a low price to gain market share quickly.

Skimming pricing

setting a high price initially and lowering it over time.

Psychological pricing

setting prices that appeal emotionally (e.g. $9.99).

Loss leader

selling a product below cost to attract customers.

Price discrimination

charging different prices to different groups for the same product.

Price leadership

when a dominant firm sets prices others in the market follow.

Predatory pricing

setting very low prices to eliminate competitors.

Place

the method of distribution used to deliver the product to customers.

Distribution channel

the path a product takes from producer to consumer.

Intermediary

a third party involved in the distribution process (e.g. wholesaler, retailer).

Retailer

a business that sells products directly to the final customer.

Wholesaler

a business that buys in bulk from producers and sells to retailers.

Agent

an intermediary who sells products on behalf of a business.

Direct selling

selling directly to the customer without intermediaries.

Promotion

methods used to inform, persuade, and remind customers about a product.

Above-the-line promotion

paid forms of communication (e.g. TV, radio, newspapers).

Below-the-line promotion

non-media promotional methods (e.g. sales promotions, PR, sponsorships).

Advertising

paid media to communicate a message to a wide audience.

Sales promotion

short-term incentives to boost sales (e.g. discounts, free samples).

Sponsorship

financial support of an event or activity to promote a brand.

Public relations (PR)

managing a firm's image through unpaid media and goodwill.

Personal selling

direct communication between a salesperson and a customer.

Direct marketing

promotional material sent directly to potential customers.

Guerrilla marketing

unconventional and creative promotional strategies with low cost and high impact.

E-commerce

buying and selling goods or services over the internet.

Business-to-business (B2B)

transactions between businesses.

Business-to-consumer (B2C)

transactions between businesses and individual consumers.

Clicks and mortar

businesses with both an online and physical presence.

Product portfolio

the range of products a business offers.

Boston Consulting Group (BCG) matrix

a tool that classifies products into stars, cash cows, question marks, and dogs based on market share and market growth.

Star

a product with high market growth and high market share.

Cash cow

a product with high market share in a low-growth market.

Question mark

a product with low market share in a high-growth market.

Dog

a product with low market share and low market growth.

International marketing

marketing products across international borders.

Globalization

the increasing interconnectedness of markets and businesses worldwide.

Global marketing

using a standardized marketing strategy in multiple countries.

Glocalization

adapting marketing strategies to fit local markets.