Unit 3- AICE Business

Marketing objectives

The goals set for the marketing department to help the business achieve its overall (corporate) objectives

Marketing

The management task of identifying and meeting the needs of customers profitably by getting the right product at the right price to the right place at the right time

Corporate objectives

Well-defined and realistic goals that are set for the whole company

Marketing strategy

A plan of action giving details of how a business intends to achieve its marketing objectives by creating competitive advantage

Equilibrium price

The price level at which demand is equal to supply

Demand

The quantity of a product that consumers are willing and able to buy at a given price in a specific time period

Supply

The quantity of a product that firms are prepared to supply at a given price in a specific time period

Market segment

A subgroup of a whole market in which consumers have similar characteristics

Industrial market

The selling of products by businesses to other business, also known as business to business or B2B

Consumer market

The selling of products by businesses to the final end user, also known as business to consumer or B2C

Customer (or market) orientation

An outward-looking approach that bases product decisions on consumer demand, as established by market research

Product orientation

An inward-looking approach that focuses on making products that can be made -or have been made for a long time- and then trying to sell them

Market size

The total value (or quantity) of sales of all producers within a market in a given time period

Market growth

The percentage change in the total size of a market (volume or value) over a period of time

Brand leader

The brand with the highest share of the market

Consumer products

Goods or services sold to end users

Industrial products

Goods or services sold to businesses

Mass marketing

Selling standardized products or ranges of products in the same way to the whole market

Niche marketing

Identifying and exploiting a small segment of a larger market by developing differentiated products to suit that segment

Market segmentation

The identification of different groups of customers with common needs within a market and the marketing of different products or services to those customer groups

Consumer profile

A quantified picture of a business’s consumers, showing data about their age groups, income levels, location, gender and social class

Customer relationship marketing (CRM)

Using marketing activités to build and establish good customer relationships so that the loyalty of existing customers can be maintained

Market research

The process od collecting, recording and analyzing data about customers, competitors and the market.

Primary research

The collection of first-hand data that is directly related to the needs of the business

Secondary research

The use of existing data that was originally collected for another purpose

Qualitative data

Non-numerical data, which provides insight into the detailed motivations of consumers and helps to explain their buying behavior or opinions

Quantitative data

Numerical results from research that can be statistically analyzed

Sampling

The process of selecting a group of respondents from a larger population

Sample

A group of people taking part in a market research survey selected to be representative of the overall target market

Sampling bias

When a sample is not a good representation of the whole population, because it is chosen in ways which give some people a greater chance of being selected

Arithmetic mean

The value calculated by totaling all the results and dividing by the number of results

Mode

The value that occurs most frequently in a set of data

Median

The value of the middle item when data has been ordered or ranked, it divides the data into two equal parts

Range

The difference between the highest and lowest value

Coding

The process of labelling and organizing qualitative data to identify the main themes and the links between them

product

goods or services that are the end result of the production process and are sold on the market to satisfy customer needs

marketing mix

the four key decisions on product, price, promotion and place that must be taken to enable the effective marketing of a product

goods

products which have a physical existence, such as washing machines and chocolate bars

services

products which have no physical existence, but satisfy consumer needs in other ways, such as hairdressing, car repairs, childminding and banking.

brand

an identifying symbol, name, image or trademark that distinguishes a product from its competitors.

intangible attributes

the subjective opinions of customers about a product, which cannot be measured or compared easily

tangible attributes

the measurable features of a product, which can be easily compared with other products.

new product development (NPD)

the design, creation and marketing of new goods and services

unique selling point (USP)

the special feature of a product that makes it different from competitors' products

product differentiation

the unique qualities of a product that lead to a difference between the product and competitors' products

product positioning

consumers’ view of a product or service as compared to it competitors

product portfolio analysis

analyzing the range of existing products of a business to help allocate resources effectively between

product life cycle

the pattern of sales for a product from launch to withdrawal from the market.

consumer durable

a manufactured product that can be re-used and is expected to have a reasonably long life, such as a car or washing

extension strategy

a marketing plan to extend the maturity stage of the product before a completely new one is launched

Boston Matrix

a method of analysing the product portfolio of a business in terms of market share and market growth

mark-up pricing

adding a fixed mark-up for profit to the unit cost of buying in a product.

cost-plus pricing

setting a price by calculating a total unit cost for the product and then adding a fixed profit mark-up.

contribution-cost pricing

setting prices based on the variable costs of making a product, in order to make a

contribution towards fixed costs and profit.

competitive pricing

making pricing decisions based on the price set by competitors

price discrimination

charging different groups of consumers different prices for the same good or service

dynamic pricing

offering products at a price that changes according to the level of demand and the customer's ability to pay

penetration pricing

setting a relatively low price to achieve a high volume of sales

market skimming

setting a high price for a new product when a firm has a unique or highly differentiated product with low price elasticity of demand

psychological pricing

setting a price at a level which matches consumers' views about a product's perceived value

promotion

the use of advertising, sales promotion, personal selling, direct mail, trade fairs, sponsorship and public relations to inform consumers and persuade them to buy

advertising

paid-for communication to inform and persuade consumers, using media such as TV, newspapers and cinema

direct promotion

a range of promotional activities aimed directly at target customers. It is also known as direct marketing

sales promotion

incentives such as special offers or special deals directed at consumers or retailers to achieve short-term sales increases and repeat purchases by consumers

promotion mix

the combination of promotional techniques that a firm uses to sell a product

digital promotion

the promotion of products using digital technologies, mainly on the internet but also including mobile (cell) phones

e-commerce

the buying and selling of goods and services by businesses and consumers through an electronic medium

channel of distribution

the chain of intermediaries a product passes through from producer to final consumer

online marketing (e-commerce)

selling and marketing activities that use the internet, email and mobile communications to encourage direct sales via electronic commerce

digital distribution

the delivery or distribution of digital media content such as audio, video, TV programmes, films, software and video games

physical distribution

the activities that combine to achieve the efficient movement of finished products from the end of the production operation to the consumer

integrated marketing mix

the key marketing decisions complement each other and work together to give customers a consistent message about the product