Business Unit 3 Marketing AS level

Marketing Objectives

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

Marketing

The managment task of identifing and meeting the needs of customers profitably by getting the right product at the right price to that 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 suppy 

Demand

the quantity of a product that customers and welling and able to buy at a given price in a specific time period

Supply

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

Market segment 

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

Industrial market

the selling of products to business by other business also know as business to business or B2B

Consumer Market 

The selling of a product by business to the final end user also know as business to consumer or B2C

Customer orientation

An outward looking approach that bases product desisions of customer demand as establised my market research 

Product orientation

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

Market size

The total value of sales of all producers within a market in a given time period

Market growth

The percentage change in the total size of the market 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 servies sold to businesses

Mass marketing

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

Niche marketing

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

Market segmentation

The identification of different grouups of customers with common need within a market and the marketing of different products or servies to those customer groups

Consumer profile

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

Customer relationship marketing (CRM)

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

Market research

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

Primary research

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

Secondary research 

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

Qualitative data 

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

Quantitative data

Numerical results from research that can be statistically analysed

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 

Coding

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

Product  

Good or servies 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 physical existence, such as washing machines and chocolate bars 

Services

Products which have no physical existence, but satisfy consumer needs in otehr 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 cutomers about a product, which cannot be measured or compared easily

Tangible attributes

The measurable features of a product, whch 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 form competitors products

Product differentiation

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

Product positioning

Consumer view of a product or service as compared to its competitors

Product portfolio analysis 

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

Product life cycle

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

Consumer durables

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

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 analying 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 toatl 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 goods 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

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, newpapers 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 speacial offers or speacial 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

E-commerce

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

Channels of distribution

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

Digital distribution

The 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