Business Management Topic 4 | Quizlet

Market growth

Refers to an increase in the size of a market, usually measured by the rise in total sales revenue of the market or industry.

Market leader

Refers to the business with the largest market share in a given industry.

Market orientation

This is an approach to marketing that focuses on meeting the specific demands (desires and needs) of customers and potential customers.

Market share

Refers to the sales revenue that an organization accounts for within a given market or industry. It is measured by expressing the firm's sales revenue as a percentage of the whole industry's sales revenue.

Market size

The total number of individual customers or the total value of sales revenue in a certain market.

Marketing

The management process of identifying, anticipating, and satisfying customer requirements in a profitable way. It is the art of determining the goods and services required to meet the needs and wants of customers in a sustainable way.

Needs

These are the things people need in order to survive, e.g., food, water, and shelter.

Product orientation

This is an approach to marketing that focuses on making products a business knows how to make well, rather than primarily concentrating on the needs and desires of potential customers.

Sales revenue

Refers to a firm's income from selling its goods and/or services, i.e., the value of its sales.

Sales volume

Refers to the volume (quantity) of sales of a particular business.

Wants

These are human desires, i.e., things that people would like to have, or have more of.

Bargain products

Goods or services that are those perceived by customers to be of high quality but sold at a low price.

Consumer profiles

The demographic and psychographic characteristics of consumers in different market segments.

Cowboy products

Goods or services that are perceived by customers to be of low quality but high price.

Demographic segmentation

The process of splitting consumers according to statistical characteristics of the population, such as age, gender, family size, religion, and ethnicity.

Differentiation

The process of distinguishing an organization's products from those of other firms in the same industry.

Economy brands

Goods or services that are perceived by customers to be of low quality and sold at a low price.

Geographic segmentation

The marketing process that involves characterising consumers according to their different geographical locations.

Market

A market is the collective term for the buyers and sellers of a particular good or service.

Market segment

A distinct group of customers with similar characteristics, tastes, and preferences.

Market segmentation

The process of dividing a market for a product into smaller or distinct groups of customers in an effort to meet their specific desired needs and wants.

Marketing mix

The key elements of a marketing strategy to ensure its success in meeting the needs and wants of the organization's customers and the firm's marketing objectives.

Marketing objectives

These are the goals or targets that help to give marketing teams (or marketing departments) a sense of purpose and direction.

Marketing plan

A document that shows the marketing objectives and marketing strategy of a particular business.

Marketing planning

The structured process of formulating marketing objectives and appropriate marketing strategies to achieve these goals.

Marketing strategies

The different long-term actions used by an organization to achieve its marketing goals.

Mass markets

A marketing approach that focuses on supplying to wide-ranging groups of customers in a market, without having split them into separate market segments, such as the markets for bottled water or breakfast cereal.

Niche markets

Marketing approach that focuses on supplying highly specialised products to cater for a small and select target market.

Objective

An objective is a target or goal a business organization strives to achieve.

Premium products

Goods or services that are perceived by customers to be of high quality and high price.

Product differentiation

Refers to the process by which firms attempt to make their goods and services different from those provided by other firms in the market in order to increase their own sales revenue.

Product position map

Also known as a perception map, this is a graphical illustration of customer perceptions of a business, its products, and/or brands in comparison to other firms in the industry.

Psychographic segmentation

Segmentation that involves characterising consumers according to people's lifestyle choices and personal values.

Socio-economic segmentation

The process of splitting the market according to consumer or household income levels. This is often linked to their type of profession and/or their level of educational attainment.

Target market

The group of customers that an organization focuses on selling its products to.

Targeting

Targeting is the marketing practice of creating and using an appropriate marketing mix and marketing strategies to cater for different market segments.

Unique selling point (USP)

An exclusive feature or aspect of a business, its products or brands that makes it distinct from others in the same industry.

Correlation

The relationship between two sets of numbers or variables, such as sales revenue at different times of the year.

Cyclical variations

The recurring fluctuations in sales revenues due to the trade cycle (or business cycle).

Extrapolation

A forecasting technique that identifies the trend from using past data and then extending this trend line to predict future sales.

Random variations

Irregular, erratic, or unexpected fluctuations in sales revenues, caused by unexpected and unpredictable factors.

Range

The difference between the highest and the lowest values in a data set.

Sales forecasting

A quantitative technique used to predict a firm's level of sales revenue over a given time period.

Seasonal variations

Foreseeable periodic fluctuations in sales revenues over a known period of time, such as certain months or times of the year.

Time series analysis

A statistical technique used to identify trends in historical data, such as the figures for a firm's monthly sales revenues.

consumer panel

A consumer panel is method of primary research used to gather feedback from research subjects. This comprises of a group of people who belong to the firm's target segment(s).

Focus groups

Focus groups involve forming small discussion groups to gain insight into the attitudes and behaviour of respondents. The group is typically made up of participants who share a similar customer profile.

Government publications

Government publications are a type of secondary market research, referring to official documents and publications released by government entities and agencies.

Interviews

Interviews are a type of primary research that involve discussions between an interviewer and interviewees to investigate their personal circumstances, preferences, and opinions.

market analysis

A market analysis is a form of secondary market research that reveals the characteristics, trends, and outlook for a particular product or industry, such as market size, market share, and market growth rate.

Market research

Market research refers to marketing activities designed to discover the opinions, beliefs, and preferences of potential and existing customers.

Media articles

Media articles are a type of secondary market research referring to the documents (articles) in print or online media. They are written by skilled journalists and authors.

Observations

Observations are a method of primary research that involves watching how people behave or respond in different situations.

Online secondary market research

Online secondary market research refers to sources available on the Internet for research purposes. These include media articles, government publications, academic journals, and market analyses available on the Internet.

population

The population, in marketing terms, refers to all potential customers of a particular market.

Primary market research

Primary market research involves gathering new data for a specific purpose, using methods such as surveys, interviews, focus groups, and observations. The research is obtained first hand to meet the specific needs of the business.

Qualitative market research

Qualitative market research involves getting non-numerical responses from research participants in order to understand their behaviour, attitudes, and opinions.

Quantitative market research

Quantitative market research is about collecting and using factual and measurable information rather than people's perceptions and opinions.

Quota sampling

Quota sampling involves using a certain number of people (known as the quota) from different market segments for primary market research purposes.

Random sampling

Random sampling gives everyone in the population an equal chance of being selected for the sample.

sample

A sample is a selected group or proportion of the population used for primary market research purposes.

Sampling

Sampling is a primary research technique that selects a sample of the population from a particular market for research purposes.

Sampling errors

Sampling errors are caused by mistakes made in the sample design, such as an unrepresentative sample being used or the sample size being too small.

Secondary market research

Secondary market research involves the collection of second-hand data and information that already exists, previously gathered by others, such as media articles and government publications.

survey

A survey is a document that contains a series of questions used to collect data for a specific purpose. Surveys are the most common method of primary research.

Above the line promotion (ATL)

Form of promotion that refers to any form of paid-for promotional technique through independent consumer media.

Advertising

A form of visual and/or audio marketing communication used to inform and persuade people to buy a certain good or service.

After-sales care

These are value-added services offered to customers subsequent to the sale of a product, e.g., guarantees and warranties, maintenance services, and technical support.

Agents

Also known as brokers, these independent intermediaries help to sell a vendor's products in return for commission, e.g., real estate agents.

Below the line promotion (BTL)

Form of promotion that refers to all forms of advertising or promotion that do not use external media agents.

Brand

A brand is the registered name used to identify a product of a particular business organization.

Brand awareness

The degree of customer knowledge and recognition of a particular brand in order to gain more customers.

Brand development

Part of a firm's marketing strategy in communicating the value of a brand and what the brand stands for.

Brand loyalty

The degree of customer devotion to a particular brand.

Brand switching

This is the opposite of brand loyalty and occurs when consumers turn to alternative brands, mainly because the original brand has lost some of its former appeal.

Brand value

The expected earning potential of a brand, i.e., the likely future earning potential (value) of a particular brand.

Branding

This is the practice of using an exclusive name (brand), symbol, or design which identifies a specific product or business.

Competitive pricing

This pricing method involves a business setting the price of its products at the same or similar level charged by competitors in the market.

Consumer goods

These are products bought for personal consumption, rather than for business use, e.g., home appliances, furniture, food and drink, and house plants.

Contribution pricing

A pricing method that involves setting the price of a product at a level higher than the direct costs. Hence, the sale of each product earn the firm a positive contribution towards paying its indirect costs.

Cost-plus pricing (or mark-up pricing)

Adds a profit margin to the costs of production, thereby ensuring that each unit sold contributes towards the profits of the firm.

Customer care

Refers to the attentiveness and courtesy of employees towards meeting the needs of their customers in the delivery of a good or service.

Customer loyalty schemes

These are marketing strategies used to attract customers to remain devoted to a brand or business by offering rewards and other incentives for repeat purchases.

Customer loyalty schemes

Reward systems used to encourage customers to make repurchases, such as price discounts or free gifts for members.

Direct mail

The use of postal correspondence for promotional purposes.

Direct marketing

Refers to a business communicating information about its products straight to customers.

Distribution (place)

The marketing process of getting the right products to the right customers in the right place and at the right time, e.g., wholesalers, retailers, agents, e-commerce, and vending machines.

Distribution channel

Also known as a channel of distribution, this refers to the path taken for a product to get from the producer to the consumer.

Dynamic pricing

This refers to charging customers different prices based on changing demand at different times of the day, week, month, or year.

Extension strategies

Marketing approaches used to prolong or lengthen a product's life cycle, e.g., price reductions or new promotional strategies.

Genericized brands

These are brand names that become synonymous with the name of the product itself due to their popularity, e.g., AstroTurf, Band-Aid, Frisbee, Sellotape, and Yo-Yo.

Global brands

These are highly recognized brands in overseas markets. Firms use a unified approach to their global brand strategy to increase its brand recognition as well as to support its brand awareness and brand development in new markets.

Impulse buying

Refers to the unplanned or unintentional purchases of customers due to them being attractive by promotional campaigns (sales promotions).

Informative promotion

Describes one of the purposes of promotion in the marketing mix, which is used to notify or tell customers about a firm's products.

Innovators

The name given to the group of consumers who are the first to own a certain product, usually due to the prestige associated with being first and/or customer loyalty to a particular brand or product.

Intermediary

A third-party person or business that offers distribution services as part of a channel of distribution, such as agents, wholesalers, and retailers.

Intermediation

The marketing process of using a middle person or distributor as channels of distribution between the producer and consumers.

Logo

A form of branding that uses a visual symbol to represent a business, brand, or product.

Loss leader pricing

Pricing a product below its cost of production so as to attract customers to also buy other items (with a higher profit margin).

Mail order

A form of distribution channel that enables customers to receive their goods via postal services.