Business marketing flashcards

Market Orientation

Market Orientation

Marketing that focuses on the needs of consumers, and designs the products accordingly

Product Orientation

Marketing that focuses on the product, rather than the needs of the consumer

Market Share

the proportion of the total sales of a product/service as a proportion of the size of the market as a whole

Market Growth

the increase in the overall size, value or volume of a market over a period of time usually expressed as a percentage

Market Planning

created to accomplish specific marketing objectives, outlining a company's advertising and marketing efforts for a given period

Market Segment

Group of customers with similar characteristics, wants and needs

Consumer Profiles

A consumer profile is a compilation of consumer information, including demographic, geographic, psychographic, and behavioral data

Demographics

Characteristics of consumers to segment the market

Psychographics

Focuses on the lifestyle aspects of the consumer

Premium Product

High quality, high price product

Cowboy Product

poor quality, high price product

Bargain Product

high quality, low price product

Economy Product

low quality, low price

Niche Market

Products are aimed at a subset of a larger market (smaller groups of people)

Mass Market

Products that are aimed at broad market segments

Unique Selling Point

Brand or product of a business that separates them from their competitors

Differentiation

Marketing strategy to stand out from competitors and focusing on what makes the product/service unique in the marketplace

Market Penetration

existing products in existing markets.

Product Development

new products to sell in existing markets

Market Development

entering new markets with existing products

Diversification

new products to new markets

Sales Forecasting

a quantitative technique used to predict a firm’s level of sales revenue over a given time period, such as per month, quarter, or year.

Ad hoc research

Research designed for a specific purpose and specific client, and conducted as a one-off study or programme of studies

Continuous research

a study carried out on regular basis at specific intervals and always following the same research methodology

Quota sampling

selecting a specific number of people based on certain characteristics (age, gender, etc)

Random sampling

selecting a group of people or things from a larger group, where each item has an equal chance of being chosen

Convenience sampling

selecting a group of people or things for a study by choosing the easiest ones to research or get information from

Product Life Cycle

Research and Development → Launch → Growth → Maturity → Decline

Product Extension Strategies

marketing approaches that try to lengthen the product life cycle.
reducing the price

• promotional strategies (marketing, special offers etc)

• product enhancements/modifications (limited editions, repackaging etc)

• expanding into new markets

• product differentiation strategies, to show how superior or unique the product is in comparison with competitors.

Brand awareness

the extent to which people recognize and remember a particular brand

Brand development

the ongoing improvement of the brand name in order to boost sales revenue and market share

Brand Loyalty

when customers become repeat customers. a high degree of brand loyalty will ensure that customers continue to support and promote your brand

Brand Value

the premium that customers are willing to pay for a brand name over and above the value of the product itself

Cost-plus pricing

Adding a fixed percentage (markup) to the cost of producing a product.

Penetration pricing

Setting a low initial price to enter a competitive market and attract customers quickly.

Loss Leader pricing

Setting a very low price, lower than market cost, for a product to attract customers, hoping they will purchase other items at regular prices.

Predatory pricing

Setting very low prices to drive competitors out of the market (often considered illegal or unethical).

Premium pricing

Charging a high price to reflect the exclusiveness and premium value of a product.

Dynamic Pricing

Adjusting prices based on real-time supply and demand conditions.

Competitive pricing

Setting prices based on competitors’ pricing strategies.

Contribution pricing

the price of a product is set based on its variable costs, with the aim of covering these costs and contributing to fixed costs and profit.

Wholesalers

businesses that purchase their products in large quantities directly from manufacturers and other suppliers and act as a break of bulk point, reselling the goods in smaller quantities to retailers and other customers

Brokers

specialist individuals who act as promotional intermediaries in the distribution channel for an external business to sell their products to.

Retailers

commercial businesses that sell a manufacturer’s products directly to consumers.

Specialty channel

any indirect channels of distribution that do not involve a retail store

Multichannel

the practice of interacting with customers using a combination of indirect and direct communication channels

ATL (Above The Line) Marketing

use of mass media sources to market to consumers

BTL (Below The Line) Marketing

use of non-mass media to market to targeted consumers,

People

goodwill/efficiency or effectiveness of the service provided by employees

Process

marketing audit (an overview of all the marketing mix and SWOT factors for a business) happens, which in turn

Physical Evidence

Tangible aspects of the service

BCG Matrix

a business planning tool used to evaluate the strategic position of a firm's brand portfolio

STEEPLE

social, technological, economic, environmental, political, legal, and ethical factors.

BMT Porter’s generic strategies

cost leadership, differentiation, or focus. These are known as Porter's three generic strategies and can be applied to any size or form of business. Porter claimed that a company must only choose one of the three or risk that the business would waste precious resources.

Market leadership

ability to maintain the largest share of a specific market or industry

Market

Place where customers and suppliers trade

Business to consumer market

Business to business market

Marketing plan

A plan that a business creates to identify their marketing objectives and achieve them

Market segmentation

The business targeting the different marketing segments

Market research

market research focuses on identifying potential customers and customer preferences

Time series analysis

a technique that attempts to predict sales by identifying rends from past sales figures, taken at regular intervals in the past

• seasonal variations - related to times of the year

• cyclical variations - related to economic cycle (recession, depression, etc)

• random variations - related to unpredictable factors (eg covid)

Extrapolation

when businesses use historical trends to predict future sales

Primary market research

Firms gathering first hand data, specific to an organization’s needs (self-conducted)

Secondary market research

collecting data and information that already exists about a product, business, or market (externally-conducted)

TTL (Through The Line) Marketing

Mix of ATL and BTL Marketing, integrates both strategies to reach as many potential customers

Distribution channels

process of getting a product to consumers

Direct distribution

producer DIRECTLY selling the product to the consumer

Agents (brokers)

specialist individuals who act as intermediaries in the distribution channel.

Retailers (Brokers)

commercial businesses that sell a manufacturer’s products directly to consumers.

Wholesalers

Zero-channel network

(producer → consumers) no intermediaries

One-channel network

(product → intermediary → consumers) involves the use of a single intermediary, such as agent or retailers

Two-channel network

involves two intermediaries

Three-channel network

uses 3 intermediaries, often involving an agent who sells the goods to wholesalers on behalf of the producer

processes (how the service is provided to customers)

how the service is provided to customers

Exporting

selling a product directly to a foreign customer

Franchise

using a franchise to operate your firms activities in a foreign market

International joint ventures

agreements between at least 2 companies to operate a new business venture

Brand Licensing

allows another firm in a foreign country to produce other branded or patented products under license usually under strictly controlled terms over quality