IB Business Management: Unit 4

Marketing

Marketing

The management process of delivering the right product to the right customer at the right price, place, and time.

Product orientation

A business approach that prioritizes creating the product before selling it.

Market orientation

A business approach that focuses on understanding consumer demand through market research before producing and selling a product.

Market share

The percentage of total sales a business has within an industry.

Market growth

The increase in the number of consumers purchasing a good or service over a specific period.

Market segmentation

The process of dividing the market into distinct groups of consumers based on similar characteristics.

Target market

A group of consumers with common needs or wants that a business serves or sells to.

Product positioning

Analyzing how consumers perceive a product compared to others in the market.

Unique selling proposition (USP)

A product's feature that sets it apart from competitors.

Porter's Generic Strategies

Cost leadership, differentiation, and focus strategies applicable to products and services in all industries.

Sales forecasting

Predicting a firm's future sales levels.

Time series analysis

A quantitative sales forecasting method using past sales data to predict future sales levels.

Trend

The visible pattern in sales data indicating the rise and fall of sales over a period.

Seasonal fluctuations

Changes in demand due to varying seasons, impacting sales within a year.

Cyclical fluctuations

Variations tied to the business cycle in an economy, affecting sales over more than a year.

Random fluctuations

Notable changes standing out from a trend, like sudden demand spikes.

Moving average

A sales forecasting method emphasizing trend direction identification.

Extrapolation

Extending a trend line to predict future sales.

Variation

The difference between actual sales and trend values.

Market research

Collecting, analyzing, and reporting data related to a specific market.

Primary research

Collecting first-hand information directly from the market.

Secondary research

Collecting second-hand information, often quicker and cheaper.

Qualitative research

Collection, analysis, and interpretation of consumer opinions, attitudes, or beliefs.

Quantitative research

Collection, analysis, and interpretation of numerical data.

Sampling methods

Techniques to select a representative sample from a population for research.

The seven Ps of the marketing mix

Key elements ensuring successful marketing of a product.

Product life cycle

The stages a product goes through from development to decline in the market.

Price skimming

Setting a high price for a new product introduction.

Penetration pricing

Setting a low initial price to attract customers quickly.

Promotional pricing

Temporarily reducing prices to attract customers during different product life cycle stages.

Extension strategies

Plans to extend a product's life cycle by various means.

Extension strategies

Strategies important for the long-term success of a product in a saturated market to prevent sales decline.

Product portfolio analysis

Evaluation process of all products or services offered by an organization to make decisions on product offerings.

Boston Consulting Group (BCG) matrix

Growth-share matrix measuring market growth rate and relative market share to classify products into Stars, Cash Cows, Problem Children, and Dogs.

Brand

Name, symbol, or design distinguishing a firm's product from competitors.

Brand loyalty

Consumers' commitment to a brand leading to repeat purchases over time.

Price

Money paid for a good or service, crucial for setting marketing objectives.

Cost-plus pricing

Adding a mark-up to the average cost of production to set product prices.

Penetration pricing

Setting a low initial price to attract customers quickly and gain market share.

Loss leader

Selling a product below average cost to attract customers to buy other higher-priced products.

Price elasticity of demand

Measurement of how demand changes with price variations.

Promotion

Communication of product information to consumers to obtain new customers or retain existing ones.

Social media marketing

Marketing approach using social networking websites to promote products.

Place

Concerns how products reach consumers and their distribution channels.

Channel of distribution

Path taken by a product from the producer to the final consumer.

People

Most crucial element in service businesses, impacting customer experience and relationships.

Processes in Marketing

Processes in marketing encompass the procedures and policies involved in delivering products and services to consumers, including identifying customer requirements, handling complaints, and managing orders to enhance customer loyalty.

Physical Evidence

Physical evidence allows customers to preview services before purchase, influencing their perception and potentially leading to positive testimonials, improved brand image, and increased sales.

Seven Ps Marketing Mix Model

The seven Ps marketing mix model simplifies marketing strategies by incorporating people, processes, and physical evidence alongside the traditional product, price, promotion, and place elements, aiding in strategy formulation, customization based on customer needs, and resource allocation.

International Marketing

International marketing involves promoting goods and services across national borders to tap into global markets and expand business operations.

Globalization

Globalization refers to the heightened worldwide competition that drives businesses to engage in international marketing to reach broader audiences and gain a competitive edge.

E-commerce

E-commerce refers to conducting trade activities over the internet, enabling businesses to reach global customers and facilitate online transactions.

Piggybacking

Piggybacking involves utilizing the distribution channels of one domestic business by another home country business to introduce and sell new products in foreign markets, leveraging existing networks for market penetration.