UNIT 3 BUSINESS

Market

Where buyers and sellers meet to exchange goods and services.

Market Size

Total sales of all producers in a market.

Market Growth

Percentage change in market size over time.

Market Share

Firm’s sales as a percentage of total market sales.

Market Location

The geographic area where businesses sell their products.

Marketing Objectives

Goals for the marketing department to achieve within a time frame.

Marketing Budget

Estimated financial resources allocated for marketing activities.

Marketing Mix (4Ps)

The combination of Product, Price, Promotion, and Place in marketing.

Marketing Strategy

A company's approach to attracting customers and increasing sales.

Industrial Markets

Selling products to businesses focusing on long-term relationships.

Consumer Markets

Selling products to individuals for personal use.

Market Segmentation

Dividing a market into distinct groups of buyers.

Mass Marketing

Targeting the entire market with one product.

Niche Marketing

Focusing on a specific small market segment.

Customer Relationship Management (CRM)

Maintaining long-term customer relationships.

Primary Research

Original research collected firsthand for a specific purpose.

Secondary Research

Analysis of existing data collected for another purpose.

Sampling

Collecting primary data from a small group instead of the whole population.

Product Differentiation

Making a product stand out from competitors.

Unique Selling Proposition (USP)

The feature that makes a product unique.

Product Life Cycle

The stages a product goes through from introduction to decline.

Boston Matrix (BCG Matrix)

A tool for analyzing a company's product portfolio.

Price Skimming

Setting a high price for a new innovative product, then lowering it.

Penetration Pricing

Setting a low price to attract customers and gain market share.

Dynamic Pricing

Adjusting prices based on demand fluctuations.

Promotional Pricing

Short-term price cuts to attract customers.

Advertising

Mass media promotion to notify audiences about products.

Sales Promotion

Short-term incentives to boost sales.

Direct Promotion

Personal communication with customers.

E-Commerce

Buying and selling goods/services online.

Branding

Creating a unique identity for a product.

Packaging

The physical container or wrapping of a product.

Digital Promotion

Using digital channels to promote products.

Price Elasticity of Demand (PED)

The degree to which demand changes in response to price changes.

Market Share Formula

Market Share = (Firm’s Sales / Total Market Sales) x 100.

Market Orientation

Focus on identifying consumer needs before developing products.

Product Orientation

Focus on product development before marketing.

Competitive Pricing

Setting a price based on competitors’ prices.

Cost-Plus Pricing

Adding a markup to the production cost to set the price.

Psychological Pricing

Setting prices that make products appear cheaper (e.g., $9.99 instead of $10).

Consumer Demographics

The statistical characteristics of a population, such as age and income.

Market Forecasting

Estimating future market conditions based on current trends.

Loyalty Programs

Incentives provided to encourage repeat purchases.

Public Relations (PR)

Managing public perception of a product or company.

Viral Marketing

Encouraging customers to share promotional content.