iGCSE Business Unit 3

Sales promotion

Techniques aimed at giving a short-term boost to sales of product, e.g. special offers, deals or competitions.

Product life cycle

Stages that the sales of a product go through: development, launch, growth, maturity, decline and withdrawal. Shown on a graph.

Price skimming

Charging a high price for a new product, to take advantage of customers keen to buy what is new.

E-commerce

Buying and selling products using computer systems, linked to the internet.

Marketing mix

The combination of factors that help to sell a product, often summarized as the 4Ps (Price, Product, Promotion, Place).

Promotional pricing

Selling a product at a low price for a short period of time.

Marketing

The process of finding out customer wants (market research) and using appropriate strategies to sell the product (marketing mix).

Extension strategy

Means to lengthen the product life cycle, encouraging customers to carry on buying.

Price elasticity

The responsiveness of demand to a change in price. This can be inelastic (low) or elastic (high).

Cost plus pricing

Pricing strategy based on working out the cost and adding on a little more, as a profit margin.

Marketing budget

Planned spending on marketing for a particular product, a range of products or for the whole business, for a certain period of time.

Brand name

A unique name for a business' product which distinguishes it from other products.

Brand image

An 'identity' or image for a product which gives it a 'personality' and distinguishes it from other products; customers 'feel' something about the product.

Distribution channel

The route through which a product goes, from manufacturer to the customer, e.g. direct, or through wholesalers, retailers or agents.

Competitive pricing

Pricing a product at or below the average price level, in order to maintain or increase market share.

Promotion

Letting customers know about the product and persuading them to buy.

Market share

The percentage of the total sales of a product that one business or product has.

Packaging

The container or wrapping for the product, which can be used to carry promotional messages or information required by law.

Marketing strategy

A plan for the selling of a product or group of products, based on the right marketing mix.

Penetration pricing

Charging a low price in order to break into a market and increase sales of the product.

Customer

Someone who buys a product. This may be the same as a consumer, who uses it, but might not be.

Market research

Gathering, analyzing and interpreting information about customers and competitors.

Mass marketing

Selling to a large number of average customers in a market.

Questionnnaire

A set of questions used to find out information, for example in market research.

Competitive(ness)

1. A high level of competition (e.g. a business sells in a 'competitive market').

Primary research

Collection of original data, specific to your purposes.

Focus group

A small group of people interviewed in-depth about the feelings and preferences, for market research.

Market orientation

Being very much focused on customer wants, rather than being 'product orientated' (focusing on developing the product then trying to find buyers).

Niche marketing

Selling to a small, often very specialised segment of a larger market.

Survey

Carrying out research using questionnaires or interviews with a number of people.

Consumer

Someone who uses a product.

Secondary research

Using information that already exists, that has been collected before.

Brand loyalty

When customers buy the same brand of product again and again, rather than choosing a different brand.

Market

1. A place or means by which sellers and buyers can meet and do business. Can be physical or virtual.

Socio-economic grouping

A group of people identified by their social class or level of income.

Market segment

An identifiable group of customers who have similar characteristics or preferences.

Random sample

A sample which is chosen at random: each person has an equal chance of being chosen.

Sample

A group of people chosen to take part in market research, e.g. answering a questionnaire.