Unit 3 - Decision making to improve marketing performance (copy)

Marketing objective

A target set for the marketing function, for example to increase sales by 10% within 3 years

Relationship marketing

An approach to marketing in which a company seeks to build long term relationships with its customers by providing consistent satisfaction

Business ethics

Refer to whether a business decision is perceived as morally right or wrong

Sales value

Measures the level of sales in a given period in pounds sterling (in the UK)

Sales volume

Measures the level of sales in a given period in terms of units sold

Market share

Measures the sales of one brand or business as a percentage of total market sales in a given period

Sales growth

The percentage change in sales volume or value over a given period

Market growth

The percentage change in the total sales in the market over a given period

Globalisation

The increasing trade between countries and the growing internationalisation of businesses

Competitiveness

Measures the extent to which a business offers good value for money relative to competitors

Marketing research

Involves gathering and analysing data relevant to the marketing process

Primary market research

Involves gathering data for the first time

Secondary market research

Uses data that already exists

Target population

All the items or people that are relevant to the market research being undertaken

Sample

A group of people or items selected to represent the target population

Market mapping

Analyses market conditions to identify the position of one product or brand relative to others in the market in terms of given criteria

Confidence level

The probability that the research findings are correct

Confidence interval

The possible range of outcomes for a given confidence level

Brand

A "promise of an experience" and conveys to consumers a certain assurance as to the nature of the product or service they will receive

Patent

Protects new inventions and covers how things work, what they do, how they do it, what they are made of and how they are made

Trade mark

A sign which can distinguish the goods and services of a business from those of its competitors

Price elasticity of demand (PED)

Measures how responsive demand is to changes in the price, all other factors constant

Income elasticity of demand (YED)

Measures how responsive demand is to changes in the income, all other factors constant

Big data

Refers to large and complex data sets

Segmentation

Occurs when similar customer needs and wants are grouped within a market

Market segments

The groups of similar needs and wants within a market

Targeting

Occurs when a business decides which segments it wants to operate in

Niche marketing

Focuses on a particular segment of the market

Mass market

An approach that aims to provide products that meet some of the needs of the a large proportion of the market

Positioning

Identifies the benefit and price combination of a product relative to competitors

Marketing mix

The 7 Ps, Product, Price, Place, Promotion, People, Process and Physical evidence.

Consumer products

Goods bought for consumption by the general public

Industrial products

Goods bought for use in business processes

Product life cycle model

Shows the sales of a product over its life

Product portfolio analysis

Examines the market position of all of the products of a business, for example in terms of market share or market growth

Boston Matrix

Analyses all of the firm's products in terms of their market share and the growth of the market

Balanced portfolio

An appropriate mix of products in terms of their market shares and market growth

Social media

Refers to the social interaction among people where they create, share or exchange information and ideas in virtual communities

Viral marketing

A marketing technique that uses social media and networks to raise brand awareness and boost sales by getting users to recommend the promotional campaign to others

Multichannel distribution

Means that customers can buy the product in several ways, for example in store, online or 'click and collect'

E-commerce

The buying and selling of products through an electronic medium such as the internet