Business Management Unit 2: Area of Study 2

Marketing

is the process of implementing strategies to price, promote, and distribute products to current and potential customers.

Customer base

is a group of consumers who continuously purchase goods and services from a business.

Business objectives

are the goals a business intends to achieve.

Internal environment

involves factors within a business that a business has control over.

Corporate culture

is the shared values and beliefs of a business and its employees.

Operating factors

are the primary external factors impacting a business which it has some control over.

Macro factors

are social, legal, technological, and economic conditions that a business operates in and has no control over.

Market research

is the process of investigating and analysing the activities and behaviours of customers and competitors in a specific industry.

Methods for collecting primary data

survey, observation, experimentation, focus groups

secondary data

company records, government agencies, internet search

Market dimensions

an idea of the total number of potential customers who could purchase a product from a business.

Market segmentation

is the process of dividing a market into different groups of consumers that share similar characteristics.

Target market

is a specific group of consumers that a business aims its marketing efforts towards

Consumer behaviour

is the actions of those who purchase goods and services for consumption.

Consumer trends

are developed patterns in consumer behaviours, attitudes, and values.

Marketing considerations (product)

branding, design, quality, positioning, packaging

Price

is the amount that a customer pays for a good or service.

Pricing strategy (price)

cost-plus pricing, competition-based pricing, penetration pricing, price skimming, complementary pricing, psychological pricing

Place

is an element of the marketing mix relating to how a business distributes its product to customers.

Distribution channel (place)

producer to customer (direct), producer to wholesaler to customer (indirect), producer to retailer to wholesaler to customer (indirect)

Promotion

is the marketing communications used by a business to inform, promote, and remind its target market about its product.

Promotion strategy (promotion)

advertising, sales promotion, direct marketing, personal selling

People

are the individuals that influence a customer's perception of a business and its products.

Physical evidence

is the environment in which the business and customer interact.

Elements (physical evidence)

facilities, interior design, ambience, evidence of service being performed, digital world

Process

is the procedure set in place throughout the entire customer purchasing experience at a business.

Methods to improve customer experience

information, purchasing options, efficient service, knowledgeable staff

Product life cycle

is a series of stages that a product will pass through from the moment it is introduced to the market until it becomes obsolete or replaced.

Stages of product life cycle

introduction, growth, maturity, decline, extension

Customer relations

is the way a business creates, builds, and maintains customer relationships

Quality customer service

is a business consistently going above and beyond expected performance to ensure customers are satisfied with their experience

Customer loyalty programs

are marketing initiatives that enable customers to gain benefits for frequently purchasing from a business

Technological developments

are the invention and innovation of tools that solve problems and enhance processes.

Example of technological marketing

social media, email marketing, search engine optimisation, artificial intelligence, data analytics and management of data

Email marketing

is the process of sending personalised electronic messages to existing customers to promote a business's goods and services.

Management of data

is the practice of collecting, organising, using, and storing data securely so businesses can use this information to make effective decisions.

Examples of technological marketing:

social media, email marketing, search engine optimisation, artificial intelligence, data analytics and management of data

Groups of publics:

internal, general, local community, citizen action, media, government

Public relations (PR)

is communicating an intended message to the public to create and sustain a positive business reputation

How PR helps a business:

increased sales, increased market share, increased profits

Planned public relations

is a business proactively communicating intended messages to various publics.

Planned public relations strategies:

media releases, publications, events, sponsorship, social media

Crisis public relations

is a business reactively communicating to various publics in response to an issue that can negatively affect its reputation

Corporate social responsibility (CSR)

is the ethical conduct of a business beyond legal obligations, and the consideration of social, economic, and environmental impacts when making business decisions.

Green marketing

is an advertising strategy that involves highlighting the environmental benefits of a good or service.

Customer Privacy

is the protection of sensitive, personal information that customers provide during their interactions and transactions with a business