4.2 Review IB Business Management

Definitions of words given in this chapter

Marketing plan

Marketing plan

A document outlining the marketing objectives of a firm and the strategies to achieve these objectives within a specified time period.

Marketing mix

A combination of various elements of marketing used to market a product successfully.

Target market

Market segment ( a specific group of consumers) which a particular good or service is aimed at.

Mass market

Unsegmented market in which products with mass appeal are offered to every customer through mass retailers, using the mass media to target schuh markets.

Niche market

A subset of the market, with very specific and well defined needs or wants.

Market segment

A subgroup of a whole market for a product, consisting of consumers with similar characteristics.

Consumer profile

The demographic and psychographic characteristics of consumers in different markets.

Product position map

Also known as a perception map, this is a graphical illustration of customer perceptions of a business, its products, and/or brands in comparison to other firms in the industry

Unique selling point (USP)

An exclusive feature or aspect of a business, its products or brands that makes it distinct from others in the same industry.

Marketing objectives

Marketing objectives - These are the goals or targets that help to give marketing teams (or marketing departments) a sense of purpose and direction.

Cost leadership

When a company projects itself as the cheapest manufacturer or provider of a particular product or commodity in a competition.

Market planning

The structured process of formulating marketing objectives and appropriate marketing strategies to achieve these goals.

Segmentation -

The process of dividing a company's target market into groups of potential customers with similar needs and behaviors. Identify different groups

Differentiation

The process of distinguishing an organization’s products from those of other firms in the same industry.

Cowboy Products

Goods or services that are perceived by customers to be of low quality but high price.

Focus

A method businesses apply to determine the niche market to target.

Psychographic factors

Personality characteristics, lifestyle, social class, habits, behaviors, and interests ect.

Market Standing

The position of an enterprise in relation to its competitors.

Place

Businesses can broaden their distribution channels to attract more customers. Increasingly, businesses are using the Internet as a distribution channel to promote and sell their products. Describes the methods of distribution in the marketing mix.

Demographic segmentation

The process of splitting consumers according to statistical characteristics of the population, such as age, gender, family size, religion, and ethnicity.

Marketing audit

A full exploration and analysis of the entire marketing environment of a business, assessing everything from strategies and targets to specific marketing activities. Current business market

Market share

The percent of total sales in an industry generated by a particular company. How much of that market do you control

Producer goods

Any item or service you sell to serve a customer's need or want. Industrial products sold to other businesses to further production processes.