AICE Business Unit 3 Vocab

Marketing

The management task of identifying and meeting the needs of customers profitably by getting the right product at the right place and time..

Marketing Objectives

The goals set for the marketing department to help the busines achieve its overall goals

Corporate Objectives

Well-defined and realistic goals that are set for the whole company

Marketing Strategies

A plan of action that gives details on how a busines is going to complete its marketing objectives by creating a competitive advantage

Equilibrium Price

The price where demand is equal to supply

Demand

The amount of a product that consumers are willing and able to buy

Supply

The quantity of a product that firms are prepared to supply

Market Segment

A subgroup of the whole market where consumers have similar characteristics

Industrial Market

The selling of products from one business to another (B2B)

Consumer Market

The selling of products by business to the final end user

Customer (or Market) Orientation

An outward-looking approach where product decisions are based on consumer demand

Product Orientation

An inward-looking approach that focuses on making products that can be made and then selling them

Market Size

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

Market Growth

The percentage change in the total size of a 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 and services 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 larger market by developing differentiated products to suit that segment

Market Segmentation

The identification of different groups of customers with common needs within a market and the marketing needs of different products to those customer groups

Consumer Profile

A quantified picture of a business’s consumers with their age, income, location, and class

Customer Relationship Marketing

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

Product

Goods or services that are the end result of the production prcess and are sold on the market to satisfy customer needs

Marketing Mix

THe key decisions on product, promotion, price, and placement that must be taken to enable the effective marketing of the product

Goods

Products that are physical and tangible

Services

Products that are not physical and tangible

Brand

An identifying symbol, name, or image that distinguishes a product from its competitors

Intangible Attributes

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

Tangible Attributes

The measurable features of a product which can be easily compared to other products

New Product Development

The design, creation, and marketing of new products

Unique Selling Point

The special feature of a product that differentiates it from its competitors

Product Differentiation

The unique qualities of a product that cause a difference between the product and competitors’ products

Product Positioning

Consumers’ views of a product 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 withdrawl from the market

Consumer Durable

A manufactured product that can be re-used and is expected to have a reasonably long life

Extension Strategy

A marketing plan to extent the maturity stage of the product before a new one is launched

Boston Matrix

A method of analysing the product portfolio of a business in terms of market share and 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 and then adding a fixed mark up

Contribution Cost Pricing

Setting prices based on the variable costs in order to make a contribution towards fixed costs and profit

Competitive Pricing

Making pricing decisions based off prices set by competitors

Price Discrimination

Charging different groups of people different prices for the same product

Dynamic Pricing

Offering products at a price that changes based off demand and 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 it is unique with low price elasticity

Psychological Pricing

Setting a price at a level that matches consumers’ views about a product’s perceived value

Market Research

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

Primary Research

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

Secondary Research

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

Qualitative Data

Non-numerical data that provides insight into the detailed motivations of consumers and helps explain their buying patterns

Quantitative Data

Numerical data that can be statistically analysed

Sampling

The process of selecting a group of respondents from a larger population

Sample

A group of people participating in a market research survey to represent the target market

Sampling Bias

When a sample isn’t a good representative of the larger population because it was chosen in ways where some people had a greater chance of being selected

Arithmetic Mean

The value calculated by adding all the results and dividing by the number of results

Mode

The value that occurs most frequently in a data set

Median

The value of the middle term when the data has been ordered from least to greatest

Range

The difference between the highest and lowest value

Coding

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