Studied by 3 people
mass market
a market that targets a large segment - products are standardised
niche market
a market that targets a small segment - customers have specific needs that aren't catered by the mass market
brand name
a name, sign, symbol or other feature that allows consumers to identify the goods of a business and differentiate it from rivals
e-commerce
conducting business transactions online
online retailing/ e-tailing
buying goods online
market
a arrangement where the buyer and seller can trade and communicate
marketing
process that involves identifying, analysing and anticipating customer requirements profitably
market share
the total sales a business has in a particular market that involves one and more other businesses
primary/field research
data collected first-hand for a specific purpose (involves questionnaires)
secondary/desk research
data that already exists for a different purpose (can be internal - stock movements/sales figures and external - international publications/rival websites)
quantitative research
data can be measured (financial element to it)
qualitative research
research based on opinions, beliefs and intentions.
consumer panel
group of consumers are asked for feedback of a product after a period of time
database
a system that stores data electronically - has features such as find and sorting.
focus groups
consumers are invited for a discussion about a product that is going to be launched in the market
market orientation
a business that places the needs of the customers at the centre of decision making
product orientation
a business that puts emphasis on the product itself - meaning contact with customer comes last
market research
collection, presentation and analysis of data relating to the marketing and consumption of goods and services
market segmentation
a group that has similar characteristics in a whole market (behavioural, psychographic, demographic and geographic)
added value
the extra features that may be offered when selling a product which helps to exceed customer satisfaction
competitive advantage
an advantage that helps a business to perform better than its rivals
market/perceptual map
a two-dimension diagram that places a brand with other rivals against two characteristics or attributes (based on opinion)
market positioning
the view a customer has of a product compared to other rivals (in terms of quality, value and image)
product differentiation
at attempt by a business to set the product apart from its rivals
reposition
the process by which a business attempts to change the position consumers have of their product
USP
the aspect or feature of a product that clearly distinguishes it from its rivals
demand
amount of a product consumers are willing and able to buy at any given price
Factors affecting demand
price of substitutes, complementary goods, advertising and branding, fashion and tastes, seasonality, demographics and external shocks (government, competition and economic climate)
complementary goods
goods that are purchased together because they are consumed together (milk and cereal)
inferior goods
income rising = demand falls (Tesco value crisps)
substitute good
goods that can be bought as an alternative to other but perform the same function
normal good
income rising = demand rises (kettle chips for example)
supply
amount of a product which suppliers will offer at a given price
factors affecting supply
cost of production, introduction of new technology, indirect taxes, government subsidy and external shocks (weather and government)
subsidy
a grant given to producers using to encourage production
equilibrium price/ market clearing price
the price which demand and supply are equal
excess demand
point at which supply is unable to meet demand (shortage of goods)
excess supply
point at which supply is greater than demand (unsold supply)
total revenue
money generated from sales of good (price x quantity)
price elasticity of demand
measures the responsiveness to a change in quantity demanded to a change in price
price/income elastic
change in price/income results in a greater change in demand
price/income inelastic
change in price/income results in a small change in demand
income elasticity of demand
measures the responsiveness to a change in quantity demanded to a change in income
factors affecting PED
time, competition and branding
factors affecting YED
necessity or luxury
design mix
range of features that are important when designing a product (aesthetics, functionality and cost)
ethical sourcing
using materials and components from suppliers that respect the environment, workers and trade with integrity.
recycling
making use of resources that have been discarded as waste
resource depletion
using up of natural resources
waste minimisation
reducing the amount of resources that are discarded in the production process
above-the-line promotion
promotion that involves the use of media (newspapers, TV, cinema, radio, internet and social media)
below-the-line promotion
promotion that doesn't involve the use of the media
sales promotion
methods used to boost sales: BOGOF offers, coupons, loyalty cards and competitions
public relations
communicating with stakeholders to improve image: press release and press conference
merchandising
point of sale: product layout and display
direct mailing
sending out letters and leaflets by post informing customers about specific products
brands
manufactorer brands (Heinz Beans), own-label (Tesco value beans) and generic (carrots)
choosing promotion
cost, market type, product type, stage in product lifecycle, legal factors and competitors promotion
emotional branding
building a brand through consumers emotions
viral marketing
encouraging the passing on a message electronically
cost-plus pricing
adding a mark-up to the cost of making the product to get the price
penetration pricing
setting a low price to get established in the market
predatory pricing
setting a low pricing to force rivals out of the market
competitive pricing
setting a price accordingly to rivals
psychological pricing
setting a price slightly below a round figure (£9.99)
price skimming
setting a high price initially and then lowering it later
distribution channel
the route a product takes to get from the manufacturer to the consumer
agent/broker
an intermediary that brings together buyer and seller (travel and estate)
breaking-bulk
buying products in large quantities and selling them in smaller chunks
direct selling
manufacturer sells its products directly to seller (without the use of intermediaries)
intermediary
brings together producer and buyer (wholesaler, agents/brokers, retailers)
retailer
a business that buys products from producer or wholesaler and sells them in smaller chunks to consumers
wholesaler
a business that buys goods from manufacturer and sells them in small quantities to retailer
marketing strategy
a set of plan that helps the business achieve its marketing objective
product line
products a business produces that are quite similar
product portfolio
range of products a business is currently marketing
extension strategy
strategy used to prolong the life of a product (used when the product has hit saturation - product ajustment and promotion)
Boston matrix
2x2 model that analyses a product portfolio of a business according to its market growth and market share (cash cow, star, question mark and dog)
marketing mix (4Ps)
product, place, price and promotion
B2B
business to business (wholesaling) - COSCO wholesale
B2C
business to consumer (retailer) - TESCO
soft HRM
staff as an asset: caring about the workers - flexible hours, financial and non-financial incentives andchances for promotion
hard HRM
staff as an cost: treating staff as an cost - means minimising costs - low motivation, use of zero-hour contracts and inflexibility
collective bargaining
a method used to determine conditions of work and terms of employment through a worker's representative (trade union) and employer
flexible workforce
where workers can respond to a change in demand
home workers
people who undertake their regular work from home (suitable for parents and carers)
industrial action
disruptive measures taken by employees to put pressure on employer to solve a disagreement (strikes)
multi-skilling
process of improving the skills of the workplace
zero-hour contract
contract that doesn't guarantee the hours of work
CV (curriculum vitale)
a document that lists personal details, qualifications, education, experience and other specific details required by jobseeker
job description
a document that gives details about the duties and responsibility of the job role
person specification
a person profile that enlists the type of person (character) wanted for the job
on-the-job training
training taken at the workplace
induction training
training given to employee on the first day (tour, rules, etc)
off-the-job training
training provided externally (can be a short course)
responsibility
the duty to carry out a task
centralisation
decision-making takes place in the core of the workplace (top-down)
de-centralisation
decision-making is pushed down the chain of command away from the core (subordinates - bottom-up)
hierarchy
the order of levels of responsibility of a organisation
chain of command
the way authority and power is organised in the workplace
Note 
Flashcard (100)