IB1 Chapter 12 Marketing

distribution channel

all the companies or individuals ('middlemen') involved in moving goods or services from producers to consumers

wholesaler

an intermediary that stocks manufacturers' goods or merchandise, and sells it to retailers and professional buyers

market segmentation

Dividing a market into distinct groups of buyers who have different needs, characteristics, requirements, buying habits, or behaviors, and who might require separate products or marketing programs

product differentiation

marketing a product (appear to be) different from similar products offered by other sellers, by product differences, advertising, packaging, etc.

market opportunities

possibilities of filling unsatisfied needs in sectors in which a company can profitably produce goods or services

market skimming

setting a high price for a new product, to make maximum revenue before competing products appear on the market

market penetration

the strategy of setting a low price to try to sell a large volume and increase market share

sales representative

someone who contacts existing and potential customers, and tries to persuade them to buy goods or services

product features

the attributes or characteristics of a product, such as size, shape, quality, price, reliability, etc

price elasticity

the extent to which supply or demand (the quantity produced or bought) of a product responds to changes of price

Product Life Cycle

The stages through which goods and services move from the time they are introduced on the market until they are taken off the market. There are four main stages, including introduction stage, growth stage, maturity stage, and decline stage.

sampling

a type of marketing strategy in which a small amount of product is provided to a selected number of target consumers to try or taste the product and provide feedback if necessary. This tends to happen in a small amount and one time offer only.

trial

a type of marketing strategy in which a small amount of product is provided to the target consumers to test for a certain period of time to attract future purchases. The trial could last from 3 days to 1 month. Example: 1 week trial of subscription on a juice cleanse plan (result or flavors) or 1 month trial of a music subscription (understand product features)

psychological pricing

a type of marketing strategy in which businesses set prices to influence consumers' perceptions and purchasing decisions

brand visibility

extent to which a brand is recognized by consumers especially in public. (bill boards, social media, etc)

charm pricing

a type of psychological pricing strategy in which products are priced just below a round number (e.g., $9.99 instead of $10.00, $79 instead of 80) to make them seem more affordable.

bundle pricing

a type of psychological pricing strategy in which two or more complementary products are packed together and sold at a discounted price. (e.g., buy 1 for 10$, buy bundle for 14$)

innumeracy

a type of psychological pricing strategy in which letters are displayed as a promotion to attract more purchases. For example, people would be attracted to "Buy One Get One, rather than 50% off.

decoy pricing

a type of psychological pricing strategy in which a business adds a third option, a less desirable one (decoy), to make the target option more appealing and likely to be chosen by the consumers.