section 3 marketing terms

Marketing objectives

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

Marketing

the management task of identifying + meeting the needs of customers profitably by getting the right product, price, place + time

Corporate objectives

well-defined + 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 @ which demand is equal to supply

Demand

the quantity of a product that consumers are willing + able to buy @ a given price in a specific time period

Supply

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

Market segment

a subgroup of a whole market in which consumers have similar characteristic

Industrial market (business to business/B2B)

the selling of products by business to other businesses

Consumer market (business to consumer/B2C)

the selling of products by businesses to the final end user

Customer/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/made for a long time + trying to sell them

Market size

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

Market growth

% change in the total size of a market (volume/value) over a period of time

Brand leader

brand with highest market share

Consumer products

goods/services sold to end users

Industrial products

goods/services sold to businesses

Mass marketing

selling standardised products/ranged of products in the same way to the whole market

Niche marketing

identifying + 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 w/common needs within a market + the marketing of different products/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 + social class

Customer relationship marketing (CRM)

using marketing activities to build + establish good customer relationships so that the loyalty of existing customers can be maintained

Market research

process of collecting, recording + analysing data about customers, competitors + the market

Primary research

collection of 1st-hand data that is directly related to the need of the business

Secondary research

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 + helps to explain their buying behaviour/opinions

Quantitative data

numerical results from research that can be statistically analysed

Sampling

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

value calculated by totalling all the results + dividing by the no. of results

Mode

value that occurs most frequently in a set of data

Median

value of the middle item when data has been ordered/ranked. It divides the data into 2 equal parts

Range

difference b/w highest + lowest value

Coding

process of labelling + organisation qualitative data to identify the main themes + the links b/w them

Marketing mix

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

Product

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

Goods

products which have a physical existence, are tangible

Service

products which have no physical existence, are intangible

Brand

an identifying symbol/name/image/trademark that distinguishes a product from its competitors

Intangible attributes

the subjective opinions of customers about a product, which can’t be measured/compared easily

Tangible attributes

the measurable features of a product, which can be easily compared w/other products

New product development (NPD)

the design/creation/marketing of new goods/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 b/w the product + competitors’ product

Product positioning

consumer’s view of a product/service as compared to its competitors

Product portfolio analysis

analysing the range of existing products of a business to help allocate resources effectively b/w them

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 + is expected to have a reasonably long life (eg. car/washing machine)

Extension strategy

a marketing plan to extend the maturity stage of the product before a completely new 1 is launched

Boston Matrix

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

Mark-up pricing

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

Cost-plus pricing

setting a price by calculating a total unit cost for the product + 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 + profit

Competitive pricing

making pricing decisions based on the price set by competitors

Price discrimination

chagrin different groups of consumers different prices for the same good/service

Dynamic pricing

offering products @ a price that changes according to the level of demand + the customers’ 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/highly differentiated product w/low elasticity of demand

Psychological pricing

setting a price @ 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 + public relations to inform consumers & persuade them to buy

Advertising

paid-for communication to inform + persuade consumers, using media (eg. TV, newspaper, cinema)

Direct promotion(/marketing)

a range of promotional activities aimed directly @ target customers

Sales promotion

incentives (eg. special offers/deals) directed @ consumers/retailers to achieve short-term sales increases + repeat purchases by consumers

Promotion mix

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

Digital promotion

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

E-commerce

buying + selling goods/services by businesses + consumers through an electronic medium

Channel of distribution

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

Online marketing (e-commerce)

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

Digital distribution

delivery/distribution of digital media content (eg. audio, video, TV programmes, films, software, video games)

Physical distribution

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

Integrated marketing mix

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