IB

Marketing

The management process of predicting, identifying and meeting the needs and wants of customers in a profitable manner.

Market leadership

Refers to firms with the largest market share in a particular market.

Market orientation

A marketing approach adopted by businesses that focus on making products that they can sell, rather than selling products that they can make.

Market share

Measures the value of a firm’s sales revenues as a percentage of the total sales revenue in the industry.

Market size

Refers to the magnitude of an industry, usually measured in terms of the value of sales revenue from all businesses in a particular market, per time period.

Product orientation

A marketing approach used by businesses that focus on selling products that they can make, rather than making products that they can sell.

Consumer profiles

Demographic and psychographic characteristics of consumers in different markets.

Differentiation

The act of distinguishing a business or its products from rivals in the industry.

Market segmentation

The process of categorizing customers into distinct groups with similar characteristics and needs.

Convenience sampling

Uses subjects that are easy to reach, relying on ease of reach and volunteers due to availability.

Focus groups

Small discussion groups formed to gain insight into the attitudes and behavior of respondents.

Interviews

Discussions between an interviewer and interviewees to investigate personal circumstances and opinions.

Market analysis

Reveals the characteristics and trend for a particular product or industry.

Market research

Marketing activities designed to discover the opinions, beliefs, and preferences of potential and existing customers.

Observations

Watching how people behave or respond in different situations.

Population

All potential customers in a particular market.

Primary research

Market research that involves gathering new data first-hand for a specific purpose.

Qualitative market research

Involves getting non-numerical answers and opinions from respondents.

Quantitative market research

Collecting and using factual and measurable information rather than opinions.

Random sampling

Gives everyone in the population an equal chance of being selected for the sample.

Sample

A selected proportion of the population used for primary market research purposes.

Marketing mix

The combination of various elements needed to successfully market a product.

Marketing plan

The document outlining a firm’s marketing objectives and strategies for a specified time period.

Mass marketing

An undifferentiated marketing strategy that ignores targeting individual market segments.

Niche marketing

Targets a specific and well-defined market segment.

Targeting

Each distinctive market segment having its own specific marketing mix.

Unique selling point

Any aspect of a product that makes it stand out from those offered by rival businesses.

Branding

The use of an exclusive name, symbol or design to identify a specific product or organization.

Triple bottom line

The three pillars of sustainable development.

Cost-plus pricing

Involves adding a profit percentage to the cost per unit to determine the selling price.

Loss leader pricing

Setting the price of a product below its production costs to entice customers to buy other products.

Penetration pricing

Setting low prices to gain entry into a new market.

Price skimming

Initially charging high prices for innovative products, then reducing them as novelty wears off.

Psychological pricing

Rounding down prices to make them seem lower, like $9.99 instead of $10.00.

Above the line (ATL) promotion

Any form of paid-for promotion through mass media to reach a wide audience.

Advertising

A method of informative and/or persuasive promotion that is usually paid for.

Below the line (BTL) promotion

Doesn’t use paid-for mass media sources.

Guerilla marketing

A promotional strategy that aims to ambush customers through unconventional techniques.

Promotion

A component of the marketing mix used to inform, persuade, and/or remind customers.

Promotional mix

The combination of individual ATL and BTL promotional methods used by a business.

Publicity

The process of promoting a business and its products by getting positive media exposure.

Sales Promotion

Short-term incentives designed to stimulate demand for a product.

Social media

Refers to the marketing practice of gaining internet traffic through social media websites.

Viral marketing

A promotional strategy that combines online technologies with word of mouth techniques.

Distribution channels

The ways that a product gets from the manufacturer to the consumer.

Distribution/Place

The process of getting the right products to the right customers at the right time.

Distributors

Independent businesses that act as intermediaries in the trade of products.

Intermediaries

Agents or other businesses that act as a middle person in the chain of distribution.

Retailers

Sellers of products to the general public that operate in outlets.

Wholesalers

Businesses that purchase large quantities from manufacturers and separate them into smaller units for resale.