Unit 3: Marketing

Customer base

A group of people businesses sell their products to.

Role of marketing

To give consumers the illusion that their 'wants' are a need.

Market

Includes all consumers who want to buy the product and have the financial means to do so.

Target market

Individuals identified by businesses as the customer of the product.

Consumer market

Markets for goods and services sold to the final consumer.

Industrial market

Markets for goods and services bought by other businesses to use in the production process.

Business environment

The external and internal factors that affect the operation of a business.

Niche marketing

Developing products catered to a small segment of the whole market.

Mass marketing

Selling the same product to the whole market, not as popular.

Market segmentation

Dividing the market into different segments according to consumer characteristics (e.g., age, gender, preferences).

Geographic segmentation

Dividing the market into segments based on geographic location.

Demographic segmentation

Dividing the market into segments based on age, gender, ethnic background, and social class.

Psychographic segmentation

Dividing the market into segments based on lifestyles and personality.

Market research

The process of a business collecting and analyzing information about the customer, the market, and its competitors.

Secondary research

The collection of data from external sources.

Primary research

The collection of first-hand data.

Quantitative research

Numerical data.

Qualitative research

Information collected about customer opinions and behavior.

Focus group

A group of potential customers assembled to see their opinions about a new product before it’s launched.

Price elasticity of demand

Measured by how much the demand for a product changes when there is a change in the price.

Price inelastic demand

Products not responsive to change in price, usually a need.

Price elastic demand

Products responsive to changes in price, usually a want.

Channels of distribution

How a product gets from the producer to the final consumer.

Middlemen

Intermediaries in channels of distribution.

Sales promotion

Tactics used to increase sales for a short period.

E-commerce

The use of the internet to market and sell goods to customers.

Marketing strategy

The plan to achieve the marketing objective given a certain amount of resources.