AQA A level Business unit 3

COMPETIVENESS

Measures a firms ability to offer a better combination of price and quality than its rivals

MARKETING MIX

A combination of marketing variables that turns an idea into a practical reality. -product, place, price, promotion, people, physical environment, process

USP

A point of genuine difference that makes one product stand out from the crowd

MARKETING OBJECTIVES

Targets set for the marketing department to help meet the goals of the organization as a whole

CORPORATE OBJECTIVES

The targets deciding for the company as a whole

MARKET SHARE

the percentage of total sales in a market held by one brand or company

REPOSITIONING

Positioning the products, branding, and image to shift the proposition to a different place in the market sector

SHORT-TERMIST

Taking decisions on the basis of short-term need rather than long term benefit

PREDATORY PRICING

When a large company sets prices low with the deliberate intention of driving a weaker rival out of business

MARKET

Where buyers meet sellers

LUXURY GOODS

Products that people buy much more of when they feel better off

NORMAL GOODS

Products or services for which sales change broadly in line with the economy

MARKET RESEARCH

Gathers information about consumers, competitors ad distributors within a firms target market

PLACE

For products , place is how to get the products to the place where customers can be persuaded to buy

PRICE

Having identified the right product to appeal to its target market, the business must set the right price

PRODUCT

The business must identify the right product or service to make the product both appealing and distinctive

PROMOTION

Marketing managers must identify the right way to create the right image for the product and present it to the right target audience

PHYSICAL ENVIRONMENT

Customers pick up clues about a product or service from the physical environment by an good advertisement

PROCESS

Includes every practical aspect of the customer experience.g. phoning or trying to use the website

PEOPLE

Who comes into contact with customers that will make an impressions and that can have a profound effect- positive or negative- on customer satisfaction

BIAS

A factor that causes research findings to be unrepresentative of the whole population

PRIMARY RESEARCH

Finding out information first- hand e.g questionnaires, surveys

SECONDARY RESEARCH

Finding out information that has already been gathered e.g internet, newspaper

SAMPLE SIZE

The number of people interviewed

SAMPLING METHOD

The approach chosen to select the right people to be part of the research sample

STANDARD DEVIATION

Sample findings tend to form a bell-shaped curve when shown on a graph. within this curve, the standard deviation of the data reflects how wide or narrow is the likely variation from the mean average of the findings.

MARKET DATA AND ANALYSIS

Breaking the market down statistically to assess the types of product, consumer and competitor

PRODUCT POSTIONING

Deciding on the image and target market you want for your own product or brand

TARGET MARKET

The type of customer your product or service is aimed at

SEGMENTATION AND POSTIONING

Segmentation is the process of dividing a company's target market into groups of potential customers with similar needs and behaviours. Doing so helps the company sell to each customer group using distinct strategies tailored to their needs

SEGMENT: DEMOGRAPHIC

Population subset e.g age, ethnic origin, gender

SEGMENT: GEOGRAPHIC

Region or by country

SEGMENT: BEHAVIOURAL

Identifying and reacting to the different ways in which people live and spend

SEGMENT: INCOME

Segmenting markets in relation to household incomes

MULTIPLE SEGMENTATION

Breaking a market down into many segments and then developing many different products to fill each segment

MASS MARKETING

Devising products with mass appeal and promoting them to all types of customer

NICHE MARKETING

Tailoring a product to a particular type of customer

MARKETING MIX

Is the balance between seven elements involved in a successful marketing strategy

MARKETING STRATEGY

The medium to long-term plan for meeting the firms marketing objectives

MARKETING BUDGET

The sum of money provided for marketing a product or service during a period of time

PRODUCT LIFE CYCLE

Is the theory that all products follow a similar pattern over time, of development, introduction, growth, maturity and decline

PRICE ELASTICITY of DEMAND FORMULA

% change in quantity demanded/ % change in price

PRICE ELASTICITY of DEMAND

The quantity demanded of a good or service to a change in its price when nothing but the price changes.

INCOME ELASTICITY of DEMAND FORMULA

% change in demand/ % change in real incomes (incomes after inflation)

INCOME ELASTICITY of DEMAND

The quantity demanded for a good or service to a change in the income of the people demanding the good

BOSTON MATRIX

It helps businesses analyse their portfolio of businesses and brands, it includes four categories i.e. problem child/question mark, cash cow, stars and dogs.