CIE IGCSE Business Studies - Unit 3: Marketing

The sales team

They are responsible for the sales of the product.

The market research section

They are responsible for finding out customers' needs.

The promotion section

They deal with organising the advertising for products.

The distribution section

They transport the product to the market.

Marketing

Identifying and meeting customers' needs.

Customer

Is a person, business or other organisation which buys goods or services from a business.

Consumer

Buys goods or services not for resale

Customer loyalty

The willingness of customers to continue to buy the same product from the same business.

Customer relationships

Communicating with customers to encourage them to become loyal to the business and its products.

Market share

The percentage of total market sales held by one brand or business.

Mass Market

Where there is 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 subgroup of a whole market in which consumers have similar characteristics or preferences.

Product oriented

A business that's main focus is the product itself

Market oriented

A business that carries out market research to find out consumers wants before a product is made.

Market budget

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

Market research

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

Primary research / field research

The collection of original data via direct contact with customers.

Secondary/desk research

Information that's already been collected and is available for other users

Questionnaire

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

Quota sample

Group of people that are selected depending on similar characteristics to answer questions

Random sample

Group of people who are selected randomly to answer question

Sample

Group of people who are selected to answer a market research exercise

Focus group

Group of people who are representative of the target market

Marketing Mix

All the activities that go into marketing a product (including goods and services)

Product

The design and quality of the actual good service being sold

Price

The value at which the product is sold (particularly compared to competitors for this unit)

Place

The various channels of distribution that are selected to get the product into the market

Promotion

How the product is advertised and promoted in order to attract more consumers including: media, discounts and sales promotions.

Consumer goods

Goods that are sold and consumed by people for their satisfaction eg. cleaning materials, furniture or computers

Consumer services

Services that are sold and consumed by people for their satisfaction eg. repairing cars, hairdressing and education

Producer goods

Goods produced for other businesses to use to help with the production process eg. lorries, machinery and components

Producer services

Services produced to help other businesses including accounting, insurance and advertising agencies

Prototype

A model of the final product in order to see how it could be manufactured

Unique Selling Point (USP)

The special feature of the product that differentiates it from its competitors

Brand name

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

Brand loyalty

When consumers purchase from the same brand again and again instead of switching to competitors

Brand image

An image or identity given to a product which helps distinguish it from its competitors' brands

Packaging

The physical container or wrapping of a product

The product life cycle

The stages a product will pass through from its introduction, through to its growth until its maturity then finally its decline

Extension Strategy

A way of keeping the product at the maturity stage of the life cycle and extending the cycle

Cost-plus Pricing

Is the cost of manufacturing plus a profit mark-up

Competitive Pricing

Product is priced in line or just below competitors prices to capture more of the market.

Penetration Pricing

Price set lower than the competitors prices, to be able to enter a new market.

Price Skimming

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

Promotional Pricing

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

Price Elasticity

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

Price Elastic Demand

Is where consumers are very sensitive to price

Price Inelastic Demand

Is where consumers are not sensitive to price

% change in quantity demanded

the proportional change in the amount of a good or service that consumers are willing and able to buy, expressed as a percentage of the original quantity demanded

% change in price"

the proportional increase or decrease in the price of a product or service over time, calculated by dividing the difference between the new and original price by the original price and then multiplying by 100 to express it as a percentage

Psychological Pricing

Prices that catch the eye of the customers and hopefully results in them buying the product. Eg: $9.99 or $2.99.

Dynamic Pricing

When customers are split into two or more groups and each group is charged a different price for the same product.

Promotion

Is where marketing activities aim to raise customer awareness of a product or brand, generating sales and helping to create brand loyalty

Advertising

Paid for communication with potential customers about a product to encourage them to buy it

Informative advertising

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

Persuasive advertising

Persuasive advertising is advertising or promoting which is trying to persuade

Target audience

The target audience refers to people who are potential buyers of a product or service.

Sales promotion

Incentives such as special offers or special deals aimed at consumers to achieve a short-term increase in sales.

Marketing budget

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

Distribution channel

Means by which a product is passed from the place of production to the customer or retailer

Agent

An independent person or business that is appointed to deal with the 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

Price elasticity of demand

"Price elasticity of demand measures the responsiveness of quantity demanded for a product to a change in price.

Marketing strategy

Plan to combine the right combination of the four elements of the marketing mix for a product or service to achieve an objective.

Marketing mix

Combination of product, price, place, and promotion.

Product

A good or service that is sold to customers or other businesses.

Price

The amount that customers are charged for items

Place

the point where products are made available to customers.