Business A-level: theme 1.3

Marketing

A management process involved in identifying, anticipating and satisfying consumer requirements profitably

Marketing mix

This is more commonly referred to as the '4 P's'. These are four elements of a business' marketing that are designed to meet the needs of the customers.

Brand Name

A name, term, sign, symbol, design or any other feature that allows consumers to identify the goods and services of a business and to differentiate them from those of competitors

E-commerce

Conducting business transactions online

Product design

The process of creating a new product or service

Design mix

The range of features that are important when designing a product, including function, aesthetics & cost.

Ethical sourcing

Using materials, components and services from suppliers that respect the environment, treat their workforce well and generally trade with integrity

Recycling

Making use of materials that have been discarded as waste

Resource depletion

The using up of natural resources

Waste minimisation

Reducing the amount of resources that are discarded in the production process

Above-the-line promotion

Advertising activities that are non-targeted and have a wide reach. Usually used to build awareness of the brand.

Below-the-line promotion

A more targeted approach to promotion. This method avoids mass media like television or radio, and instead uses direct mail, face-to-face, etc. in order to sell specific products to specific consumers.

Advertising

Communication between a business and its customers where images are placed in the media to encourage the purchase of products

Merchandising

A promotion specifically at the point of sale of a product

Own-label brands

Products that are manufactured for wholesalers or retailers by other businesses

Point of sale

Any point where a consumer buys a product

Promotion

An attempt to obtain and retain customers by drawing their attention to a firm or its products

Public relations

An organisation's attempt to communicate with interested parties through putting positive stories into the media.

Sales promotions

Methods of promoting products in the short term to boost sales. For example, BOGOF.

Sponsorship

Making a financial contribution to an event in return for publicity.

Viral marketing

Any strategy that encourages people to pass on messages to others about a product or business electronically.

Competitive pricing

Pricing strategies based on charging the same as your competition.

Cost plus pricing

Adding a percentage (the mark up) to the costs of producing a product to get the price

Mark up

The percentage added to unit cost that makes a profit for a business when setting the price

Penetration pricing

Setting a low price when launching a new product in order to get established in the market

Predatory pricing

Setting a low price forcing rivals out of business

Pricing strategy

The pricing policies or methods used by a business when deciding what to charge for its products

Product life cycle

Shows the different stages in the life of a product and the sales that can be expected at each stage

Psychological pricing

Setting the price slightly below a round figure

Skimming

Setting a high price initially and then lowering it later

Agent or broker

An intermediary that brings together buyers and sellers

Breaking-bulk

Dividing a large quantity of goods received from a supplier before selling them on in smaller quantities to customers

Direct selling

Producers selling their products directly to consumers

Distribution

The delivery of goods from the producer to the consumer

Intermediaries

Links between the producer and the consumer

Retailer

A business that buys goods from manufacturers and wholesalers, and sells them in small quantites to consumers

Wholesaler

A business that buys goods from manufacturers and sells them in smaller quantities to retailers

Boston Matrix

A 2x2 matrix model that analyses a product portfolio according to growth rate of the market and the relative market share of products within the market

Extension strategies

Methods used to prolong the life of a product

Marketing strategy

A set of plans that aim to achieve a specific marketing objective

Product portfolio

The collection of products a business is currently marketing

corporate branding

the use of a company name or logo to promote all the products or services offered by the company e.g apple

product branding

the use of a unique name, design or symbol to promote a specific product

own branding

the use of a retailers name to promote a specific product or service

3 benefits of branding

added value, ability to charge a premium price & reduced PED

4 ways to build a brand

developing a USP, advertising, sponsorship & use of social media