3. Marketing

Business Terms

Marketing

is identifying customers wants and satisfying them

Customer

person, business or organisation which buys goods or services from another business

Customer loyalty

is when existing customers continually buy products from same business

Customer relationships

are communicating with customers to encourage them to become layl to the business and its products

Market share

is percentage of total market sales held by one brand or business

→ market share % = (companies sales / tot. market sales) x 100

Mass market

is where there is a large number of sales of a product

→ bottled water

Nice market

is a small, usually specialised segment of a much larger market.

→ handmade unique jewellery

Market segements

is an identifiable sub-group of a whole market in wich consumers have similar characteristics or preferences

Market research

is process of gathering, analyzing and interpreting info about market

Product-oriented business

is one whose main focus of activity is on product itself

Market-oriented business

Does market research to find out what consumer wants before product is developed and produced

Marketing budget

is a financial plan that outlines how much money is available for promoting a product or product range over a specific period, helping the Marketing department manage spending.

Primary reasearch

is collection of original data via direct contact with potential or existing customers

Secondary data

uses info that has already been collected and is available for use by others

Questionnaire

is a set of questions to be answered as a way of collecting data for market research

Online survey

require the target sample to answer a series of questions over internet

Interviews

involve asking individuals a series of questions, often face-to-face or over phone

Focus group

is a group of people who are representative of target market

Sample

is group of people who are selected to respond to a market research exercise, such as questionnaires

Random sample

is when people are selected at random as source of information for market research

Quota sample

is when people are selected based on certain characteristics (age, gender, income) as source of info for market research

Marketing mix

term used to describe all activities going into marketing a product or service.

→ four Ps

• product

• price

• place

• promotion

USP

is special feature of product differentiating it from products of competitors

Brand name

is unique name of product that distinguishes it from other brands

Brand loyalty

when consumers keep buying same brand again and again instead choosing competitors brand

Brand image

is an image or identity given to a product, giving personality of its own and diversity from competitors brand

Packaging

is physical container or wrapping for product. also used for promotion and selling appeal

Product life cycle

describes stages a product will pass through from intro, growth until maturity, till its decline.

Extension strategy

is a way keeping product at maturity stage of life cycle and extension of cycle

Cost-plus-pricing

is cost of manufacturing product plus profit mark-up

→ manufacturing + profit

Penetration pricing

is when price set lower than competitor’s prices in order to be able to enter new market

Competitive pricing

when product priced in line with or just below competitor’s prices tp try to capture more of market.

Price skimming

when high price set for new product on market

Promotional pricing

when product sold at very low price for short period of time

Dynamic pricing

when business changes product prices, usually when selling online, depending on level of demand

Price elastic demand

when consumers are very sensitive to change in price

→ demand depends on price

Price inelastic demand

when consumers not sensitive to change in price

→ demand not dependent on price

Distribution channel

means by which product is passed from place of production to consumer

Agent

independent person or business appointed to deal with sales and distribution of product or range of products

Promotion

when marketing activities aimed to raise customer awareness of product or brand, making sales and helping create brand loyalty

Advertising

means paying for communication with potential customers about product to encourage them to buy it

Informative advertising

when emphasis of advertisement or sales promotion is given full info of product

persuasive advertisment

when advertisement is trying to persuade consumer that they really need product and should buy it

Targt audience

are people who are potential buyers of a product or service

Sales promotion

incentives like special offers aimed at consumers to achieve short-term increase of sales

Marketing budget

financial plan for marketing of product or product range for specified period of time

Social media marketing

uses platforms to share content and ads to engage audiences and achieve marketing and branding goals

Viral marketing

when consumers are encouraged to share info online bout products of a business

E-commerce

is ‘online’ buying and selling of goods and services using computer system to internet and apps on mobile phones

Marketing strategy

plan to combine right group of four elements of marketing mix for product or service to achieve particular marketing objective(s)