Studied by 2 peopleMarket 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
Note
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