Studied by 9 people
marketing
management process responsible for identifying, anticipating and satisfying customer requirements profitably
market
a place where buyers and sellers come together or interact or a location
the product life cycle
a model that is designated to help product managers make strategic decisions concerning a product’s marketing mix
research and development
first stage of the product life cycle. most products do not make it out of this stage due to the low impact that the product or service generated
introduction
second stage of the product life cycle. it’s when the product is finally launched into the market
growth
third stage of the product life cycle. the product is starting to generate revenue and sales are increasing. it’s establishing its position in the market
maturity
fourth stage of the product life cycle. the product is at it’s peak point regarding sales, market share and overall recognition
decline
final stage of the product life cycle. the product is becoming obsolete and sales are starting to decrease as well as market share
product orientation
the prioritization of research and development over market research, in order to innovate a product before analyzing the market
market orientation
the prioritization of a market research over the research and development of the product
consumer marketing
when a business is marketing to its consumers
business to business marketing
businesses that are engaged to market its product to other business
marketing mix of goods
the use of 4Ps: product, price, place, and promotion
marketing mix of services
the use of 7Ps: product, price, place, promotion, process, physical evidence, and people
market size
the total sales of all firms in a market
market growth
the % change in the total market size over a period of time
market share
the % of one’s firm’s share of the total market
market leader
a firm with the highest % of market share in a given market
mass marketing
when a business offers almost the same products to all consumers and promotes them in almost the same way
niche marketing
when a business targets a product to a particular segment or small part of a larger market
commercial marketing
determine consumers’ needs before implementing the strategies to market the product
social marketing
aimed at influencing a positive change in individuals for the society’s well-being
social media marketing
the use of networking and technologies to promote a product or service
marketing planning
the formulation of marketing objectives and appropriate marketing strategies to meet those objectives
marketing plan
a document that details all of a company’s marketing activities: objective, budget, segmentation, target market, market research, marketing strategies, and control tools.
segmentation
involves breaking consumers into groups that have similar characteristics and needs
target market
the specific market the business has chosen to promote its products or services to
market research
the gathering of information about consumers’ needs, tastes, habits, and preferences to aid marketing decisions
marketing strategies
long-term actions that aim to achieve the marketing objectives
marketing mix
key elements of a marketing strategy that ensure the successful marketing of a product
geographic segmentation
division of consumers according to their location
demographic segmentation
studies the structure of a population based on factors such as age, gender, religion, race, occupation, and educational levels
segmentation by social class
division of the population using the interlinked factors of occupation, income, and level of education
psychographic segmentation
divides the population according to lifestyle and personal interests
product positioning maps
visual representations of how the various competitors attempt to position their brands in the eyes of the consumer
unique selling point (USP)
a feature of a product that makes it stand out from its competition
consumer profile
the sets of characteristics that make up the identity of a specific type of customer according to its wants or/and needs
sales forecasting
tool used by businesses to predict what levels of sales they may expect in future years
time series data
statistics that are recorded over time. the independent variable is time, and the dependent is the product or service
trend
a pattern that is happening often over time. this occurs for different reasons like fashion, news, etc.
variations
difference between actual sales and trend values
cyclical variations
variations affected by the economic cycle of a country
random variations
variations that may occur at any time, and for a variety of reasons that can’t be predicted
moving averages
useful indicatior in sales forecasing to identify and emphasize the direction of a trend
time series analysis
quantitative sales forecasting method that predicts future sales levels from past sales data
extrapolation
extension of a trend line to predict future sales
primary market research
leads to the creation of new information
primary research methods
surveys, interviews, focus groups, observations
surveys
questionnaires sent out to a particular target audience to enable the researcher to gather useful information
interviews
guided conversation using designed questions to gain qualitative information for the market research
focus groups
an interview conducted with a group of individuals, usually with similar characteristics
observations
a fundamental and basic method of getting information by carefully watching and trying to understand certain things or people’s behavior
secondary research
known as desk research, uses information that’s already available
secondary research methods
market analysis, academic journals, government publications, media articles
market analysis
comissioning a market reserach agency to carry out a new study or they can purchase a market analysis report that has already been published.
academic journals
scholarly journals that contain the very latest research and academic theory which has been published by academics from the world’s leading universities
government publications
publications from the government that cover topics such as population statistics and economics forecasts
media articles
consists of the websites and apps of newspapers and new channels which are updated practically every minute
qualitative research
not measurable information, collections of opinions, beliefs, preferences, and perceptions of the consumer
quantitative research
focuses on collecting large amounts of data that is measurable, usually numbers and percentages
sample
sub-group within a population that can be used to conduct research on, rather than researching the entire population
types of sampling
convenience, random, cluster, snowballing, stratified, and quota
convenience sampling
easiest method of sampling where the researcher will obtain the people by those who are willing to participate
random sampling
each member of the sample has an equal chance of being selected to be part of the research
cluster sampling
sample is divided in geographical areas or regions, the researcher will go to each cluster and then use random sampling
snowballing sampling
chain-referral method of sampling, used when specific knowledge is needed, the interview will ask the interviewee to make a recommendation to continue the research
stratified sampling
the sample is divided in characteristics of the people into different groups (demographics), and then random sampling is applied to select members from each group
quota sampling
the sample is divided into characteristics of the people from different groups and then convenience sampling is applied to select members from each group
product
anything that can be exchanged and is able to satisfy customers’ needs
boston consulting group (BCG) matrix
a tool to help companies with multiple products decide their marketing strategies
divisions of the BCG matrix
cash cows, dogs, stars, and problem child
cash cows
high market share, low market growth products that are successful in mature markets. they enjoy high sales revenue from an established customer base
dogs
low market share, low market growth products which may be at the end of their life cycle or they are niche products competing in mature markets
stars
high market share, high market growth products that have a significant proportion of fast-growing markets. revenues should be equally as fast growing
problem child
low market share, high market growth products that have a small market share but operate in high growth markets. these products are most likely in their introduction stage in response to the rapidly growing revenues of competitors
brand
a name, symbol, or design that is used to identify a product or company
price
the amount of money expected, required, or given in payment for something
pricing
setting the right selling price for a product. if the price is too high, potential customers may be scared away. if the price is too low, profits will not be maximized
pricing methods
cost-plus, price leader, price folower, psychological, predatory, price discrimination, and loss leader
cost-plus pricing
calculating the total cost of a product and then adding a percentage for the profit margin
price leader pricing
premium pricing
adopting a price that is slightly above rivals to give an image of prestige
price follower pricing
setting a price that is similar to that or rivals
psychological pricing
setting a price in a way that seems attractive to consumers
predatory pricing
temporarily setting an extremely low price to undercut rivals, forcing them to leave the market. this type of pricing is often illegal.
price discrimination pricing
charging different groups of consumers different prices for the same good or service
loss leader pricing
significantly reducing the price of a single item to attract customers, expecting them to buy other products while shopping
branding
the process of creating an image or symbol that represents the company and is easily identifiable
brand awareness
the extent to which a brand is recognized and associated to a product by customers
brand loyalty
the tendency of customers to continue buying the same brand rather than the competitors
brand value
importance of the brand from the customer’s perspective
packaging
how the product is presented, its purpose is to protect the product and communicate information
above the line (ATL) promotion
the use of paid-for media such as TV, radio, and the internet to reach a large audience and promote a product or service
below the line (BTL) promotion
any promotion that is not carried out in the mass media
promotional mix
combination between both BTL and ATL promotion
viral marketing
when an advertising message is self-replicated like a virus
guerrilla marketing
shies away from paying for traditional, expensive mass-marketing media such as television and print
channel of distribution
the path a product takes when it travels from producer to the final consumer
extended marketing mix
tool to help managers develop a marketing strategy for services
place
consideration of where the product should be available and how it’ll be displayed
promotion
the process of communicating to consumers about the product, that they need it and that it is appropriately priced. heavily relies on advertising, public relations, and the overall media strategy for introducing a product
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