AICE Business AS Level Unit 3: Marketing

Marketing Objectives

The goals set for the marketing department to help the business achieve its overall objectives

Marketing

The management task of identifying and meeting the needs of customers profitably by getting the right product at the right price to the right place at the right time

Corporate Objectives

Well-defined and realistic goals that are set for the whole company

Marketing Strategy

A plan of action giving details of how a business intends to achieve its marketing objectives by creating competitive advantage

Equilibrium Price

The price that balances quantity supplied and quantity demanded

Demand

The quantity of a product that consumers are willing and able to buy at a given price in a specific time period

Supply

The quantity of a product that firms are willing and able to supply at a given price in a specific time period

Market Segment

A subgroup of a whole market in which consumers have similar characteristics

Industrial Market

The selling of products by businesses to other businesses, also known as business to business or B2B

Consumer Market

the selling of products by businesses to the final end user, also known as business to consumer or B2C

Customer (or market) Orientation

An outward-looking approach that bases product decisions on consumer demand, as established by market research

Product Orientation

An inward-looking approach that focuses on making products that can be made - or have been made for a long time - and then trying to sell them

Market Size

The total value (or quantity) of sales of all producers within a market in a given time period

Market Growth

The percentage change in the total size of a market (volume or value) over a period of time.

Brand Leader

The brand with the highest percentage share of a particular market.

Consumer Products

Goods and services sold to end users

Industrial Products

Goods and services sold to businesses

Mass Marketing

Selling standardized products or ranges of products in the same way to the whole market

Niche Marketing

Identifying and exploiting a small segment of a larger market by developing differentiated products to suit that segment

Market Segmentation

The identification of different groups of customers with common needs within a market and the marketing of different products or services to those customer groups

Consumer Profile

A quantified picture of consumers of a firm's products, showing proportions of age groups, income levels, location, gender and social class

Customer Relationship Marketing (CRM)

Using marketing activities to establish successful customer relationships so that existing customer loyalty can be maintained

Market Research

The process of collecting, analyzing, and interpreting data about customers, competitors, and the business environment in order to improve marketing effectiveness

Primary Research

The collection of first-hand data that is directly related to a firm's needs

Secondary Research

The use of existing data that was originally collected for another purpose

Qualitative Data

Non-numerical data, which provides insight into the detailed motivations of consumers, and helps to explain their buying behavior or opinions

Quantitative Data

Numerical results from research that can be statistically analyzed

Sampling

The process of selecting representative units from a total population

Sample

The group of people taking part in a market research survey selected to be representative of the overall target market

Sampling Bias

When a sample is not representative of the population from which it was drawn

Arithmetic Mean

An average that is calculated by adding up a set of quantities and dividing the sum by the total number of quantities in the set.

Mode

The most frequently occurring score(s) in a distribution

Median

The middle score in a distribution; half the scores are above it and half are below it

Range

The difference between the highest and lowest value

Coding

The process of labelling and organizing qualitative data to identify the main themes and the links between them

Marketing Mix

The four key decisions on product, price, promotion, and place that must be taken to enable the effective marketing of a product

Product

Goods or service that are the end result of the production process and are sold on the market to satisfy customer needs

Goods

Products that are tangible, such as washing machines and chocolate bars

Services

Products which are intangible but satisfy customer needs in other ways, such as hairdressing, car repairs, and banking

Brand

An identifying symbol, name, image or trademark that distinguishes a product from its competitors

Intangible Attributes

The subjective opinions of customers about a product, which cannot be measured or compared easily

Tangible Attributes

The measurable features of a product, which can be easily compared with other products

New Product Development (NPD)

The design, creation and marketing of new goods and services

Unique Selling Point (USP)

The special feature of a product that differentiates it from the products of competitors

Product Differentiation

The unique qualities of a product that lead to a difference between the product and the products of competitors

Product Positioning

Consumers' perceptions of a product's attributes, uses, quality, and advantages and disadvantages relative to competing brands

Product Portfolio Analysis

Analyzing the range of existing products of a business to help allocate resources effectively between them

Product Life Cycle

The pattern of sales for a product from launch to withdrawal from the market

Consumer Durable

A manufactured product that can be reused and is expected to have a reasonably long life, such as a car or washing machine

Extension Strategy

a marketing plan to extend the maturity stage of the product before a completely new one is launched

Boston Matrix

A method of analyzing the product portfolio of a business in terms of market share and market growth

Mark-Up Pricing

Adding a fixed mark-up for profit to the unit price of a product

Cost-Plus Pricing

Setting a price by calculating a total unit cost for the product and then adding a fixed profit mark-up

Contribution-Cost Pricing

Setting prices based on the variable costs of making a product, in order to make a contribution towards fixed costs and profit

Competitive Pricing

Making pricing decisions based on the price set by competitors

Price Descrimination

Charging different prices to different groups of people for the same product

Dynamic Pricing

Offering products at a price that changes according to the level of demand and the customer's ability to pay

Penetration Pricing

Setting a relatively low price to achieve a high volume of sales

Market Skimming

Setting a high price for a new product when a firm has a unique or highly differentiated product with low price elasticity of demand

Psychological Pricing

Setting a price at a level which matches consumers' views about a product's perceived value

Promotion

The use of advertising, sales promotion, personal selling, direct mail, trade fairs, sponsorship, and public relations to inform consumers and persuade them to buy

Advertising

Paid-for communication with consumers to inform and persuade

Direct Promotion

A range of promotional activities aimed directly at target customers. It is also known as direct marketing

Sales Promotion

Incentives such as special offers or special deals directed at consumers or retailers to achieve short-term sales increases and repeat purchases by consumers

Promotion Mix

The combination of promotional techniques that a firm uses to sell a product

Digital Promotion

The promotion of products using digital technologies, mainly on the internet but also including mobile (cell) phones

E-Commerce

The buying and selling of goods and services by businesses and consumers through an electronic medium

Channel of Distribution

The chain of intermediaries a product passes through from producer to final consumer

Online Marketing

Selling and marketing activities that use the internet, email and mobile communications to encourage direct sales via electronic commerce

Digital Distribution

The delivery or distribution of digital media content such as audio, video, TV programs, films, software and video games

Physical Distribution

The activities that combine to achieve the efficient movement of finished products from the end of the production operation to the consumer

Integrated Marketing Mix

The key marketing decisions complement each other and work together to give customers a consistent message about the product