Unit 4 IB Business Terms 2024 exams

Marketing

The management task that links the business to the customer by identifying and meeting the needs of customers profitably.

Market growth

The percentage change in the total size of a market (volume or value) over a period of time.

Market share

A firms sales (volume or value) as a percentage of total sales in a market.

Market orientation

An approach basing product decisions on consumer demand as established by market research.

Market leader

the firm in an industry with the largest market share

Product orientation

An approach that focuses on producing products that can be made or have been made for a long time and then trying to sell them.

Marketing plan

A detailed report on an organisation's marketing strategy that incorporates SMART objectives, strategic plans, specific marketing actions and a marketing budget.

Marketing mix

The key decisions that must be considered in the effective marketing of a product.

Promotion

The action of raising customer awareness of a product or a brand in order to generate sales and create brand loyalty.

Place

The channel where the product or service is being distributed and sold.

Product

The item offered for sale (tangible or non-tangible).

Marketing objectives

The goals set for the marketing department to help the business achieve its overall objectives.

Marketing strategy

A long term plan established for achieving marketing objectives.

Market segmentation

The process of splitting a market into distinct groups of buyers in order to better meet their needs.

Demographic market segmentation

Characteristics of a population, such as age, gender, race, location, employment status

Psychographic market segmentation

Characteristics of a population that include people's personality, values, attitudes, interests, lifestyles

Market segment

A sub group of a whole market in which consumers have similar characteristics.

Consumer profile

A way of describing a consumer categorically so that they can be grouped for marketing and advertising purposes.

Target market

The market segment that a particular product is aimed at.

Positioning map

A diagram of how consumers in a segment perceive products or brands based on specific elements they consider important

USP (unique selling point)

The factor that differentiates the product from its competitors.

Mass marketing

An attempt to appeal to an entire market with one basic marketing strategy using mass distribution and media.

Niche marketing

Marketing strategy that targets a specific and well defined market segment.

Differentiation

The process of distinguishing a product or business from competitors in the market or industry.

Primary research

First hand data, generated for/by a firm, that is related to the firm's needs.

Secondary research

Use of analysis that already exists.

Quantitative research

A formal, objective, systematic process in which numerical data are used to obtain information.

Qualitative research

A type of research that aids in gaining an understanding of underlying reasons, opinions, and motivations.

Focus group

A small group of individuals who are led in discussion by a professional consultant in order to gather opinions on and responses to firms products or services

Sampling

The process used in a statistical analysis where data is obtained from a group.

Random sampling

Each member of the focus group has a chance of being included in the sample.

Quota sampling

Population is split on shared characteristics and then everyone is interviewed.

Convenience sampling

using a sample of people who are readily available to participate

Consumer durables

Manufactured products that can be re-used and are expected to have a reasonably long life (ex. washing machine or cars).

Fast moving consumer goods

everyday convenience products sold in retail outlets such as supermarkets

Product life cycle

The cycle that every product goes through from introduction to decline.

Introduction stage

A stage in the product life cycle of when the product is released into the market and sales slowly start to increase.

Growth stage

A stage in the product life cycle when brand recognition is established using promotion. Sales rapidly increase and product starts to break even.

Maturity stage

A stage in the product life cycle when sales level off and start to slightly slow down. Brand loyalty is established and brand recognition is at peak.

Decline stage

A stage in the product life cycle when sales decrease and if wanted extension strategies are implemented.

Extension strategy

Techniques used by a business to lengthen the product life cycle of one of its product.

Brand awareness

Measures how many consumers in a market are familiar with the brand and what it stands for; created through repeated exposures of the various brand elements (brand name, logo, symbol, character, packaging, or slogan) in the firm's communications to consumers.

Brand development

Measures the infiltration of a product's sales, usually per thousand population. If 100 people in 1000 buy a product, it has a brand development of 10.

Brand value

The total financial value of a brand. It can also be measured by the premium customers are willing to pay for a firm's offerings vs alternatives.

Cost plus pricing

Adding a fixed mark-up for profit to the unit price of a product.

Penetration pricing

Selling at a relatively low price often supported by promotion in order to get high volume sales.

Premium pricing

A competitor-based pricing method by which the firm deliberately prices a product above the prices set for competing products to capture those consumers who always shop for the best or for whom price does not matter

Loss leader

A product sold at loss to attract customers.

Predatory pricing

Deliberating under cutting competitors prices in order to force them out of the market.

Above the line promotion

Promotion based on advertising in mass media which reaches a wide audience (ex. newspapers, magazines, TV)

Below the line promotion

Promotion that aims to reach consumers more directly and in a more target way through forms of communication other than traditional mass advertising channels

Promotional mix

The combination of promotional techniques

Channel of distribution

Chain of intermediaries a product passes through from producer to final consumer

Intermediaries

Third parties who sell the product and who each adds a profit margin