IBDP BM Unit 4

market

a place or process whereby customers and suppliers trade. A market exists where there is demand for a particular product and where there is a willingness from businesses to supply these products

market concentration

measures the degree of competition that exists within a market by calculating the market share of the largest few firms in the industry

market leadership

firms with the largest market share in a particular market

market orientation

A marketing approach adopted by businesses that are outward looking by focusing on making products that they can sell, rather than selling products that they can make.

market share

measures the value of a firm's sales revenues as a percentage of the total sales revenue in the industry.

market size

The magnitude of an industry, usually measured in terms of the value of sales revenue from all the businesses in a particular market, per time period.

marketing

The management process of predicting, identifying and meeting the needs and wants of customers in a profitable manner.

marketing strategies

The medium to long term plan to achieve a firm's marketing objectives

needs

the essential necessities that human must have to survive, i.e. food, shelter, warmth and water

product orientation

A marketing approach used by businesses that are inward looking as they focus on selling products that they can make, rather than making products that they can sell.

social marketing

Any activity that seeks to influence social behaviour to benefit the target audience and society as a whole

wants

human desires, i.e. things that people would like to have, irrespective of a person's income or wealth, all people have infinite wants

consumer profiles

The demographic and psychographic characteristics of consumers in different markets

differentiation

the act of distinguishing a business or its products from rivals in the industry. it tries to create the perception among customers that the firm's product is different (unique or special) compared with substitute products from rival businesses

ethical marketing

The moral aspects of a firm's marketing strategies. It can be encouraged by the use of moral codes of practice.

market segmentation

the process of categorizing customers into distinct groups with similar characteristics (such as age or gender) and similar wants or needs

marketing mix

The combination of the four elements of marketing—product, place, promotion, and price

marketing objectives

the targets that the marketing department wishes to achieve

marketing plan

document which outlines a business's marketing problems and how they will be addressed and solved

marketing planning

the systematic process of devising marketing objectives and appropriate marketing strategies to achieve these goals. It required the collection and analysis of information about a particular market, e.g. market research data on existing and potential customers

niche marketing

targets a specific and well-defined market segment, e.g. some businesses provide high-end speciality goods (such as Louis Vuitton handbags, Bugatti cars and Cartier watches) in niche markets.

mass marketing

Undifferentiated marketing. This is a strategy that ignores targeting individual market segments

packaging

a form of non-price competition that focuses on the ways in which a product is presented to the consumer

place

describes the method of distributing products to customers, e.g. Coca-Cola distributes its drinks to customers via wholesalers, retailers and vending machines

process

part of the extended marketing mix which refers to the methods and procedures used to give clients the best possible experience

Re-positioning

A marketing strategy that involves changing the market's perception of a firm's product or brand in comparison to rival firms.

segmentation

The process of categorising customers into distinct groups of people with similar characteristics (such as age or gender), and similar wants or needs for research and targeting purposes.

targeting

Each distinctive market segment will have its own marketing mix. Different markets can also be targeted, depending on whether they operate in niche, differentiated or mass markets.

unique selling point

Any aspect of a product that makes it stand out form those offered by rival businesses

HL correlation

It shows the degree to which two sets of numbers or variables are related, e.g. sales revenue over a period of time. Marketers are interested in establishing a strong correlation between marketing expenditure and sales growth.

HL extrapolation

a forecasting technique used to identify the trend by using past data and extending this trend to predict future sales.

HL sales forecasting

A quantitative technique that attempts to estimate the level of sales a business expects to achieve, over a given time period.

HL time series analysis

a sales forecasting technique that attempts to predict sales levels by identifying the underlying trend from a sequence of actual sales figures

Clustering Sampling

It is used when getting feedback from respondents involves too much time, travelling or money. For example, it would be too time consuming costly for a company to randomly interview people across all the countries that it operates in.

convenience sampling

The sampling method that uses subjects that are easy (convenient) to reach, e.g. students often use their classmates and friends in a research study. It relies on ease of reach and volunteers because of their availability

focus groups

It involves forming small discussion groups to gain insight into the attitudes and behavior of respondents. The group is typically made up of participants who share a similar customer profile, such as teenage boys who like to play online computer games.

market research

It refers to marketing activities designed to discover the opinions, beliefs and preferences of potential and existing customers in order to identify and anticipate their wants and needs.

Observation

a method of primary research that involves watching how people behave or respond in different situations. It can be done under controlled conditions (like a laboratory test) or as real-life situations (where people do not know that they are being watched.

Primary Research

market research that involves gathering new data first-hand for a specific purpose. Methods of primary research include： surveys（questionnaires), interviews, focus groups and observations

qualitative market research

involves getting non-numerical answers and opinions from respondents. The main purpose is to understand the behavior, attitudes and perceptions of customers, employees or other respondents.

quantitative market research

it is about collecting and using factual and measurable information rather than opinion

quota sampling

it is the most common sampling involving a certain number of people (known as the quota) from different market segments being used for research

sampling errors

it is caused by mistakes made in the sample design, such as an unrepresentative sample being used or the sample size being too small

Secondary Research

it involves the collection of second-had data and information that already exists, previously gathered by others. Examples include government publications and news articles.

snowballing

it refers to market research carried out with individuals who then suggest other friends, family members or colleagues, thereby increasing the sample size. It is used when firms are unable to get hold of appropriate respondents as the population is not clear.

stratified sampling

it involves subdividing the market into segments that share homogeneous or very similar characteristics. A number of respondents from each stratum that is proportional to the population is then randomly selected for the sample.

survey(or questionnaire)

it is a document that contains a series of questions used to collect data for a specific purpose. It is the most common method of primary research

academic journals

periodical publications from educational and research institutions that publish data and information relating to a particular academic discipline

sample

a selected proportion of the population used for primary market research purposes

random sampling

it gives everyone in the population an equal chance of being selected for the sample

non-sampling errors

it is caused by human error or human behaviour They arise from the researcher's mistakes in recording, processing or analyzing data, or because respondents do not always give truthful and honest answers

interviews

a type of primary research that involve discussions between an interviewers and interviewees to investigate their personal circumstances and opinions. Beliefs, attitudes and feelings can be examined in detail

Boston matrix

A marketing tool for analysing the product portfolio of a business. It shows whether products have high or low market share and operate in high or low market growth industries.

brand awareness

Extent to which a brand is recognized by potential customers, and is correctly associated with a particular product. Expressed usually as a percentage of the sample surveyed

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

it occurs when customers buy the same brand of a product time and time again. They are devoted to the brand since they have brand preference over other brand names

brand value

the premium that customers are willing to pay for a brand over and above the value of the product itself, i.e. customers are willing to pay more for a reputable brand

branding

the use of exclusive name, symbol or design to identify a specific product or organization. It differentiates a product from similar ones offered by rival firms

cash cow

A term used by the Boston Consulting Group to refer to any product that generates significant money due to its large market share in a mature market.

consumer goods

products bought for personal consumption, such as consumer durables (e.g. furniture, computers and cars) and perishables (e.g. food and flowers)

dogs

products in the BCG matrix that have low market share and operate in low growth or stagnant markets. Hence dogs do not generate much cash or profit for a business

extension strategy

Is an attempt by marketers to lengthen the product life cycle of a particular product. Such strategies are typically used during the maturity or early decline stages of a product's life cycle.

product

any physical good, service, or idea that satisfies a want or need plus anything that would enhance the product in the eyes of consumers, such as the brand

product differentiation

any strategy used to make a product appear to be distinct from others, such as quality, branding and packaging

product life cycle

the typical process that products go through from their initial design and launch to their decline and eventual withdrawal. Different products undergo each of the five stages (research, launch, growth, maturity and decline ) at varying speeds

product portfolio

the range of products or strategic business units owned and developed by an organization at any one point in time

question marks

products in a BCG matrix that complete in high market growth industries, but have low market share. They consume lots of cash but do not generate much profit, if any

rising stars

Products in the BCG matrix that have high or rising market share in a high growth market

cost-plus pricing

it involves adding a percentage or predetermined amount of profit to the cost per unit of output to determine the selling price

loss leader pricing

it involves setting the price of a product below its costs of production. The purpose is to entice customers to buy other products with high profit margins in addition to purchasing the loss leader product

penetration pricing

it involves setting low prices to gain entry into a new market Once the product has established market share, prices can be raised

predatory pricing

it involves temporarily setting prices so low that rivals, especially smaller firms, cannot compete at a profitable level

price

the amount paid by a customer to purchase a good or service

price discrimination

it involves charging different prices to different groups of customers for the same product,e .g. adult and child airline tickets

price leadership

it used for best-selling products or brands in a particular market. Customers perceive there to be few substitutes for such products so the dominant firm can set its own prices. Competitors set their prices based on the price of the market (or price) leader.

premium price

it invovles initially charging high prices for innovative or high-tech products. Price is reduced as the novelty wears off and as substitute products appear

price wars

it involves business competing by a series of intensive price cuts to threaten the competitiveness of rival firms

psychological pricing

it involves rounding down numbers such as $9.90 or &14,995 to make prices seem lower (than $10.00 or $15,000).

above the line promotion

any form of paid-for promotion through the mass media (such as television and radio) to reach a wide audience

advertising

a method of informative and/or persuasive promotion that is usually paid for. The aim of commercial advertising is to raise the level of demand for a firm's products.

below the line promotion

it does not use paid-for mass media sources, e.g. free samples (toiletries, food, drinks, etc) discount vouchers (to entice customers to buy the product ) and added value promotions (e.g. special introductory deals)

guerrilla marketing

a promotional strategy that aims to ambush or catch the attention of customers through unusual, innovative, unconventional and/or shocking techniques, on a relatively low budget

logos

a form of product differentiation that use a visual symbol to represent a business, its brands or its products, e.g. Nike's Swoosh, Rolex's golden crown, or the globe of Wikipedia

promotion

a component of the marketing mix. it refers to the methods used to inform, persuade and/or remind people about a firm's products or brands

promotional mix

the combination of individual ATL and BTL promotional methods used by a business, such as advertising, direct marketing, packaging and sales promotion.

public relations

business activities aimed at establishing and protecting the desired image of an organization. It is concerned with getting good media coverage, usually without directly paying for it

publicity

the process of promoting a business and its products by getting positive media exposure without directly paying for it

sales promotions

short-term incentives designed to stimulate demand for a product, e.g. discount coupons, prize draws, price cuts and trade fairs

social media

the marketing practice of gaining internet traffic through social media websites such as Facebook, Twitter, YouTube and Google

social networking

any platform used mainly by individuals to build social relationships between people, often because they are friends or share things in common. Social network services include Google+, Instagram and Facebook.

slogans

catchphrases designed to represent the essence of a business or its products using a memorable set of words

sponsorship

A promotional technique which involves a business funding, supporting or donating resources for an event or business venture in return for prominent publicity

word of mouth

the spreading of marketing messages about a firm and the quality of its products or its customer service. it is perhaps the most cost-effective form of promotion

agents

negotiators who help to sell a vendor's products, such as real estate agents selling residential and commercial property for their clients

channels of distribution

The ways that a product gets from the manufacturer to the consumer. Examples include wholesalers, agents, retailer, e-commerce and vending machines.

direct mail

promotional material sent directly to people's homes or places of work, often with personal details gathered from a database containing information about know customers

direct marketing

Any promotional activity that involves making direct contact with existing or potential customers, such as door-to-door selling, personal selling and direct mail

distributors

Independent businesses that act as intermediaries by specializing in the trade of products made by certain manufacturers.

intermediaries

agents or other businesses that act as a middle person in the chain of distribution

intermediation

the process of using intermediaries in the chain of distribution between the manufacturers and consumers of a product