Definations - Unit 3

Question 1

Marketing

Answer 1

Identifying customer wants and satisfying
them profitably

Question 2

Customer

Answer 2

A customer is a person, business or other
organisation which buys goods or services from a
business

Question 3

Customer loyalty

Answer 3

Customer loyalty is when existing customers
continually buy products from the same business

Question 4

Customer relationships

Answer 4

Customer relationships is communicating with
customers to encourage them to become loyal to the
business and its products

Question 5

Market share

Answer 5

Market share is the percentage of total market sales
held by one brand or business

Question 6

Consumer

Answer 6

Consumer buys goods or services for personal
services- not to re-sell

Question 7

Mass market

Answer 7

Mass market is where there is a large number of sales
of a product

Question 8

Niche market

Answer 8

Niche market is a small, usually specialised, segment
of a much larger market

Question 9

Market segment

Answer 9

Market segment is an identifiable sub-group of a
whole market in which consumers have similar
characteristics or preferences

Question 10

Market research

Answer 10

Market research is the process of gathering, analyzing
and interpreting information about a market

Question 11

Product orientated

Answer 11

Product-orientated business is one whose main focus
of activity is on the product itself

Question 12

Market orientated

Answer 12

Market-orientated business is one which carries out
market research to find out consumer wants before a
product is developed and produced

Question 13

Marketing budget

Answer 13

Marketing budget is a financial plan for the marketing
of a product or product range for some specific
period of time. It specifies how much money is
available to market the product or range, so that the
Marketing department may know how much it may
spend

Question 14

Primary research

Answer 14

Primary research is the collection and collation of
original data via direct contact with potential or
existing customers

Question 15

Secondary research

Answer 15

Secondary research uses information that has already
been collected and is available for use by others

Question 16

Questionnaire

Answer 16

A questionnaire is a set of questions to be answered
as a means of collecting data for market research

Question 17

Online surveys

Answer 17

Online surveys require the target sample to answer a
series of questions over the internet

Question 18

Interviews

Answer 18

Interviews involve asking individuals a series of
questions, often face-to-face or over the phone

Question 19

Focus group

Answer 19

A focus group is a group of people who are
representative of the target market

Question 20

Sample

Answer 20

A sample is the group of people who are selected to
respond to a market research exercise, such as a
questionnaire

Question 21

Random sample

Answer 21

A random sample is when people are selected at
random as a source of information for market
research

Question 22

Quota sample

Answer 22

A quota sample is when people are selected on the
basis of certain characteristics (such as age, gender or
income) as a source of information for market
research

Question 23

Marketing mix

Answer 23

The marketing mix is a term which is used to describe
all the activities which go into marketing a product or
service. These activities are often summarized as the
four Ps - product, price, place and promotion

Question 24

USP

Answer 24

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

Question 25

Brand name

Answer 25

The brand name is the unique name of a product that distinguishes it from other brands

Question 26

Brand loyalty

Answer 26

Brand loyalty is when consumers keep buying the same brand again and again instead of choosing a competitor's brand

Question 27

Brand image

Answer 27

Brand image is an image or identity given to a product which gives it a personality of its own and distinguishes it from its competitors' brands

Question 28

Packaging

Answer 28

Packaging is the physical container or wrapping for a product. It is also used for promotion and selling appeal

Question 29

Product life cycle

Answer 29

The product life cycle describes the stages a product will pass through from its introduction, through its growth until it is mature, and then finally its decline

Question 30

Extension strategy

Answer 30

Extension strategy is a way of keeping a product at the maturity stage of the life cycle and extending the cycle

Question 31

Cost plus pricing

Answer 31

Cost-plus pricing is the cost of manufacturing the product plus a profit mark-up

Question 32

Competitive pricing

Answer 32

Competitive pricing is when the product is priced in line with or just below competitors' prices to try to capture more of the market

Question 33

Penetration pricing

Answer 33

Penetration pricing is when the price is set lower than the competitors' prices in order to be able to enter a new market

Question 34

Price skimming

Answer 34

Price skimming is where a high price is set for a new product on the market

Question 35

Promotional pricing

Answer 35

Promotional pricing is when a product is sold at a very low price for a short period of time

Question 36

Dynamic pricing

Answer 36

Dynamic pricing is when businesses change product prices, usually when selling online, depending on the level of demand

Question 37

Price elastic demand

Answer 37

Price elastic demand is where consumers are very sensitive to changes in price

Question 38

Price inelastic demand

Answer 38

Price inelastic demand is where consumers are not sensitive to changes in price

Question 39

Distribution channel

Answer 39

A distribution channel is the means by which a product is passed from the place of production to the consumer

Question 40

Agent

Answer 40

An agent is an independent person or business that is appointed to deal with the sales and distribution of a product or a range of products

Question 41

Promotion

Answer 41

Promotion is where marketing activities aim to raise customer awareness, of a product or a brand, generating sales and helping to create brand loyalty

Question 42

Advertising

Answer 42

Advertising means paying for communication with potential customers about a product to encourage them to buy it

Question 43

Informative advertising

Answer 43

informative advertising is where the emphasis of advertising or sales promotion is to give full information about the product

Question 44

Persuasive advertising

Answer 44

Persuasive advertising is advertising or promotion which is trying to persuade the consumer that they really need the product and should buy it

Question 45

Target audience

Answer 45

Target audience refers to people who are potential buyers of a product or a service

Question 46

Sales promotion

Answer 46

Sales promotions are incentives such as special offers aimed at consumers to achieve short-term increase in sales

Question 47

Marketing budget

Answer 47

Marketing budget is a financial plan for the marketing of a product or a product range for a specified period of time

Question 48

Social media marketing

Answer 48

Social media marketing is a form of internet marketing that involves creating and sharing content on social media networks in order to achieve marketing and branding goals. It includes activities such as posting text and image updates, videos, and other content that achieves audience engagement as well as paid social media advertising

Question 49

Viral marketing

Answer 49

Viral marketing is when consumers are encouraged to share information online about the products of a business

Question 50

E-commerce

Answer 50

E-commerce is the 'online' buying and selling of goods and services using computer systems linked to the internet and apps on mobile (cell) phones

Question 51

Marketing strategy

Answer 51

A marketing strategy is a plan to combine the right combination of the four elements of the marketing mix for a product or a service to achieve a particular marketing objective(s)