Unit 3: Key Words

Question 1

Define Marketing

Answer 1

identifying customer wants and satisfying them profitably

Question 2

Define customer

Answer 2

a person, business of other organisation which buys goods or services from a business

Question 3

Define customer loyalty

Answer 3

when existing customer continually buy products from the same business

Question 4

Define customer relationships

Answer 4

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

Question 5

Define market share

Answer 5

the percentage of a total market sales held by one brand or business

Question 6

Define consumer

Answer 6

a consumer buys goods or services for personal use - not to re-sell

Question 7

Define mass market

Answer 7

where there is a very large number of sales of a product

Question 8

Define niche market

Answer 8

a small, usually specialised, segment of a much larger market.

Question 9

Define market segment

Answer 9

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

Question 10

Define market research

Answer 10

the process of gathering, analysing and interpreting information about a market

Question 11

Define product-orientated

Answer 11

a type of business whose main focus of activity is on the product itself

Question 12

Define market-orientated

Answer 12

a type of business that carries out market research to find customers wants before a product is developed and produced

Question 13

Define marketing budget

Answer 13

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

Question 14

Define primary research

Answer 14

the collection and collation of original data via direct contact with potential or existing customers (also called field research)

Question 15

Define secondary research

Answer 15

using information that has already been collected and is availiable for use by others (also called desk research)

Question 16

Define questionnaire

Answer 16

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

Question 17

Define online surveys

Answer 17

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

Question 18

Define interviews

Answer 18

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

Question 19

Define focus group

Answer 19

a group of people who are representatives of the the target market

Question 20

Define sample

Answer 20

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

Question 21

Define random sample

Answer 21

when people are selected at random as a source of information for market research.

Question 22

Define quota sample

Answer 22

when people are selected on the basis of characteristics (such as age, gender, income) as a source of information for market research

Question 23

Define marketing mix

Answer 23

a term used to describe all the activities which go into marketing a product or service. these activities are often summarised as the 4Ps - product, price, place, promotion

Question 24

Define USP

Answer 24

the special feature of a product that differentiates it from the products of competitors (unique selling point)

Question 25

Define brand name

Answer 25

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

Question 26

Define brand loyalty

Answer 26

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

Question 27

Define brand image

Answer 27

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

Question 28

Define packaging

Answer 28

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

Question 29

Define product life cycle

Answer 29

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

Describe extension strategy

Answer 30

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

Question 31

Define cost-plus pricing

Answer 31

the cost of manufacturing the product plus a profit mark-up

Question 32

Define competitive pricing

Answer 32

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

Question 33

Define penetration pricing

Answer 33

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

Question 34

Define price skimming

Answer 34

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

Question 35

Define promotion pricing

Answer 35

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

Question 36

Define dynamic pricing

Answer 36

when businesses change the products prices, usually when selling online, depending on the level of demand

Question 37

Define price elastic demand

Answer 37

where consumers are sensitive to changes in price

Question 38

Define price inelastic demand

Answer 38

where consumers are not sensitive to changes in price

Question 39

Define distribution channel

Answer 39

the means by which a product is passed from the place of production to the customer

Question 40

Define agent

Answer 40

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

Question 41

Define promotion

Answer 41

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

Question 42

Define advertising

Answer 42

advertising paid for communication with potential customers about a product to encourage them to buy it

Question 43

Define informative advertising

Answer 43

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

Question 44

Define persuasive advertising

Answer 44

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

Question 45

Define target audience

Answer 45

people who are potential buyers of a good or service

Question 46

Define sales promotions

Answer 46

incentives such are special offers/deals aimed at customers to achieve short-term increase in sales

Question 47

Define marketing budget

Answer 47

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

Question 48

Define social media marketing

Answer 48

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

Define viral marketing

Answer 49

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

Question 50

Define e-commerce

Answer 50

the 'online' buying and selling of goods and services using computer systems linked to the internet and apps on mobile cell phones

Question 51

Define dynamic prices

Answer 51

when business change product prices, usually when selling online, demanding on the level of demand

Question 52

Define marketing strategy

Answer 52

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