Business key words UNIT 3:

Market Orientation

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

Product Orientation

An inward-looking approach that focuses on making high-quality products and then trying to sell them

Consumer Market

A market for goods and services bought by final users for their own use or consumption

Industrial Market

A market for goods and services bought by other businesses to use in their own production processes

Market Size

The total level of sales (by value or volume) of all businesses in a specific market

Market Growth

The percentage change in the total size of a market over a specific period

Market Share

The percentage change in the total size of a market over a specific period

Mass Marketing

Selling the same standardised product to the whole market to achieve high sales volume

Niche Marketing

Identifying and exploiting a small segment of a larger market by developing specialised products

Market Segmentation

Identifying different groups of consumers in a market and targeting different products to them

Consumer Profile

A quantified picture of a typical consumer in a market segment, including age, income, and gender

Customer Relationship Marketing

Using marketing activities to establish long-term relationships with customers to maintain loyalty

Market Research

The process of collecting, recording, and analysing data about customers and competitors

Primary Research

The collection of first-hand data that is directly related to a firm's specific needs

Secondary Research

The use and analysis of pre-existing data that was originally collected for another purpose

Qualitative Research

Research into the in-depth motivations behind consumer behaviour and their opinions

Quantitative Research

Research that leads to numerical results that can be statistically analysed

Sample

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

Brand

A distinguishing name or symbol that gives a product a unique identity in the minds of consumers

Extension Strategies

Marketing plans to extend the maturity stage of the product life cycle before sales decline

Boston Matrix

A method of analysing a product portfolio by looking at the market share and market growth for each product

Cash Cow

A product in the Boston Matrix with high market share in a low-growth market that generates high profit

Star

A product in the Boston Matrix with high market share in a high-growth market

Question Mark

A product in the Boston Matrix with low market share in a high-growth market

Cost Plus Pricing

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

Penetration Pricing

Setting a low price for a new product to achieve high sales and market share

Market-Skimming

Setting a high price for a new product with a strong USP to maximise short-run profits

Price Discrimination

Charging different groups of consumers different prices for the same product

Dynamic Pricing

Setting constantly changing prices for different customers based on current demand patterns

Physiological Pricing

Setting prices that take account of customers' perceptions (e.g., $9.99 instead of $10)

Loss Leader

Setting a very low price for a product, often below cost, to attract customers to buy other items

Advertsing

Communicating information about a product through media such as TV, radio, or newspapers

Sales Promotion

Short-term incentives, such as coupons or price discounts, designed to stimulate demand

Direct Promotion

Communicating directly with the consumer through methods like email or social media

Digital Promotion

The use of online and electronic means to promote and communicate with consumers

Distribution Channel

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

Intermediaries

Businesses in the distribution channel, such as wholesalers and retailers, that help move products to consumers

Direct Selling

A distribution channel where the producer sells directly to the final consumer with no intermediaries