Marketing

Market share

The percentage of total market sales held by one business.

Mass market

A market where there are a very large number of sales of a product.

Niche market

A small, usually specialised, segment of a much larger market.

Market segment

An identifiable sub-group of a whole market in which consumers have similar preferences.

Product-oriented business

One whose main focus of activity is on the product itself.

Market-oriented business

One which carries out market research to find out consumer wants before a product is developed and produced.

Marketing budget

A financial plan for the marketing of a product or product range for some specified period of time.

Market research

The process of gathering, analysing and interpreting information about a market.

Primary market research

The collection of original data through direct contact with potential or existing customers.

Secondary market research

Information that has already been collected and is available for use by others.

Questionnaire

A set of questions to be answered as a means of collecting data for market research.

Sample

A group of people who are selected to respond to a market research.

Random sample

When people are selected at random as a source of information for market research.

Quota sample

When people are selected on the basis of certain characteristics such as age, gender or income, as a source of information for market research.

Focus group

A group of people who are representative of the target market.

Marketing mix

A term which is used to describe all activities which go into marketing a product or service.

Unique Selling Point (USP)

The ideal feature of a product that differentiates it from the products of its competitors.

Brand name

The unique name of a product that distinguishes it from other brands.

Brand loyalty

When consumers keep buying the same brand again and again instead of choosing competitor’s brand.

Brand image

An image or identity to a product which gives it a personality of its own and distinguishes it from its competitor’s brands.

Packaging

The physical container or wrapping for a product.

Product life cycle

Describes the stages a product will pass through from its introduction, through its growth until it is mature and then finally its decline.

Cost-plus pricing

The cost of manufacturing the product plus a profit mark-up.

Competitive pricing

When the product is priced in line with or just below competitor’s prices to try to capture more of the market.

Penetration pricing

When the price is set lower than the competitor’s prices in order to be able to enter a new market.

Price skimming

Where a high price is set for a new product on the market.

Promotional pricing

When a product is sold at very low price for a short period of time.

Dynamic pricing

Happens when customers based on the price sensitivity of customer or the level of demand.

Price elasticity

A measure of the responsiveness of demand to a change in price.

Advertising

Involves ‘above-the-line’ promotions such as advertising on television, internet, newspapers, magazines, leaflets, posters and billboards.

Sales promotions

Involve ‘below-the-line’ promotions which mainly focus on a short-term increase in sales.

Informative advertising

Where the emphasis of advertising or sales promotion is to give full information about the product.

Persuasive advertising

Is advertising or promotion which is trying to persuade the consumer that they really need the product and should buy it.

Target audience

Refers to the people who are potential buyers of a product or service.

Marketing budget

A financial plan for the marketing of a product or product range for a specified period of time.

Distribution channel

The means by which a product is passed from the place of production to the consumer or retailer.

Agent

An independent person or business who is appointed by the business to deal with sales and distribution of a product or range of products.

E-commerce

The buying and selling of goods and services using computer systems linked to the internet.

Marketing strategy

A plan to combine the right combination of the four elements of the marketing mix for a product or service to achieve a particular marketing objective.