Unit 4 Flashcards
(162 cards)
1
Q
commercial
marketing
A
the use of marketing strategies to meet the needs
and wants of customers in a profitable way
2
Q
ethical code of
practice
A
guidelines that help businesses to act in a moral
way by considering what is ethically right or
wrong (from society’s point of view)
3
Q
a market
A
a place or process whereby customers and
suppliers trade. A market exists where there is
demand for a particular product and where there
is a willingness from businesses to supply these
products
4
Q
market
concentration
A
measures the degree of competition that exists
within a market by calculating the market share of
the largest few firms in an industry
5
Q
market growth
A
the increase in the size of a market (or industry). It
is typically expressed as a percentage increase in
the market size of an industry per year
6
Q
market leadership
A
businesses with the largest market share in a
particular market
7
Q
market orientation
A
a marketing approach adopted by businesses that
are outward looking by focusing on marketing
products that they can sell, rather than selling
products they can make
8
Q
market share
A
the value of a firm’s sales revenue as a
percentage of the total sales revenue within an
industry
9
Q
market size
A
the magnitude of an industry, usually measured in
terms of the value of sales revenue from all the
businesses within a particular market, per time
period
10
Q
marketing
A
the management process of predicting, identifying
and meeting the needs and wants of customers in
a profitable way
11
Q
marketing
objectives
A
the specific marketing goals of an organisation.
The marketing objectives of for-profit
organisations include increased sales revenue,
greater market share and market leadership
12
Q
marketing strategies
A
the medium to long term plans to achieve an
organisation’s marketing objectives
13
Q
product orientation
A
a marketing approach used by businesses that are
inward looking as they focus on selling products
they can make, rather than making products they
can sell
14
Q
social marketing
A
any activity that seeks to influence social
behaviour to benefit the target audience and
society as a whole
15
Q
consumer profiles
A
the demographic and psychographic
characteristics of consumers in different markets
16
Q
differentiation
A
the act of distinguishing a business or its products
from rivals in the industry. It tries to create the
perception among customers that the
organisation’s products are different compared to
rival or substitute products
17
Q
ethical marketing
A
the moral aspects of an organisation’s marketing
strategies. It can be encouraged by the use of
moral codes of practice
18
Q
market
segmentation
A
the process of categorising customers into
distinct groups with similar characteristics and
similar wants and needs
19
Q
the marketing mix
A
the combination of various elements needed to
successfully market a product. It is used to review
and develop marketing strategies and is at the
heart of marketing planning. Traditionally it
consists of the 4p’s: price, product, promotion and
place
20
Q
marketing
objectives
A
the targets that the marketing department wishes
to achieve. Marketing objectives should derive
from the organisation’s overall objectives
21
Q
a marketing plan
A
the document outlining an organisation’s
marketing objectives and strategies for a specifies
time period
22
Q
marketing planning
A
the systematic process of devising marketing
objectives and appropriate marketing strategies
to achieve these goals. It requires the collection
and analysis of information about a particular
market.
23
Q
market segments
A
the various sub-groups of a large market,
consisting of customers who share common or
similar characteristics
24
Q
marketing strategies
A
the various long-term actions taken by a business
to achieve its marketing goals
25
mass marketing
undifferentiated marketing. This is a strategy that
ignores targeting individual market segments
26
niche marketing
targets a specific and well-defined market
segment
27
packaging
a form non-price competition that focuses on the
ways in which a product is presented to a
consumer. Psychologists argue that people's
moods are affected by aspects of packaging such
as colour and texture
28
physical evidence
the image portrayed by a business regarding its
observable and tangible features
29
place
describes the methods of distributing products to
customers
30
position
(perception) map
a visual aid that shows customer perceptions of a
product or brand in relations to others in the
market, often by comparing perceptions about
price and quality
31
price
the amount that customers pay for a particular
good or service
32
process
part of the extended marketing mix which refers
to the methods and procedures used to give
clients the best possible experience
33
a product
a physical good or an intangible service.
Businesses sell products to fulfil the needs and
wants of their customers
34
promotion
the strategies used to attract customers to buy
firms products
35
repositioning
a marketing strategy that involves changing the
market's perception of a firm's product or brand
in comparison to a rival business
36
segmentation
the process of categorising customers into
distinct groups of people with similar
characteristics and similar buying habits for
market research and targeting purposes.
37
a target market
a clearly identifiable group of customers, thus
enabling marketers to focus their efforts on
particular market segments, such as children,
adults, women, men
38
targeting
refers to each distinctive market segment having
its own specific marketing mix. Different markets
can be targeted, depending on whether the
business operated in niche or mass marketing.
39
unique selling point
(or unique selling
proposition)
any aspect of a product that makes it stand out (in
a positive way) from those offered by rival
businesses
40
academic journals
periodic publications from educational and
research institutions that publish data and
information relating to a particular academic
discipline
41
ad-hoc market
research
market research that is conducted as and when
required by an organisation in order to deal with
a specific problem or issue
42
bar graphs
a visual method of presenting market research
data, such as sales figures during different periods
of time
43
cluster sampling
used when getting feedback from respondents
involves too much time, travelling or money
44
continuous market
research
a method of market research that is conducted on
an ongoing basis, rather than a one-off basis
45
convenience
sampling
uses subjects that are easy to reach. It relies on
ease of reach and volunteers because of their
availability
46
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
47
government
publications
a type of secondary market research, referring to
official documents and publications released by
government entities and agencies
48
histograms
a visual method of presenting market research
data by using a type of bar graph to show
frequency and the range of a data set
49
interviews
a type of primary research that involve
discussions between an interviewer and
interviewees to investigate their personal
circumstances and opinions. Beliefs, attitudes and
feelings can be examined in detail
50
line graphs
a method of visual presentation of market
research data, used to show time-series
information, such as changes in profit figures over
time
51
a market analysis
the characteristics and the outlook (trends) for a
particular product or industry
52
market research
marketing activities designed to discover the
opinion, beliefs and preferences of potential and
existing customers in order to identify and
anticipate their needs and wants
53
media articles
a type of secondary market research referring to
the documents in print or online media. they are
written by trained journalists and authors
54
non-sampling error
caused by human error or human behaviour. They
arise from the researcher's mistakes in recording,
processing or analysing data, or because
respondents do not always give truthful and
honest answers.
55
observations
a method of primary research that involves
watching how people behave or respond in
different situations. It can be done under
controlled conditions or as real-life situations
56
pie charts
a method of visual presentation of market
research data, used to show percentages
57
the population
in marketing terms, refers to all the potential
customers of a particular market
58
primary research
market research that involves gathering new data
first-hand for a specific purpose. Methods of
primary research include: surveys, interviews,
focus groups and observations
59
qualitative market
research
non-numerical answers and opinions from
respondents. The main purpose is to understand
the behaviour, attitudes and perceptions of
customers, emplovees or other respondents
60
quantitative market
research
about collecting and using factual and
measurable information rather than opinions
61
quota sampling
the most common sampling method, involving a
certain number of people from different segments
being used for research
62
random sampling
gives everyone in the population an equal chance
of being selected for the sample
63
a sample
a selected proportion of the population used for
primary research purposes
64
sampling errors
caused by mistakes made in the sample design,
such as an unrepresentative sample being used or
the sample size being too small
65
scatter diagrams
a visual method of presenting market research
data, used to show possible correlations between
two variables
66
secondarv research
the collection of second-hand data and
information that already exists, previously
gathered by others
67
snowballing
market research carried out with individuals who
the suggest other friends, family members or
colleagues thereby increasing the sample size. It
is used when businesses are unable to get hold of
appropriate respondents, as the population is not
clear
68
stratified sampling
involves subdividing the market into segments
(known as strata) that share homogeneous or very
similar characteristics. A number of respondents
from each stratum that is proportional to the
population is then randomly selected for the
sample
69
a survey
a document that contains a series of questions
used to collect data for a specific purpose. It is
the most common method of primary research
70
above-the-line
promotion
any form of paid-for-promotion through mass
media (such as television or radio) to reach a wide
audience
71
advertising
a method of informative and/or persuasive
promotion that is usually paid for. The aim of
commercial advertising is to raise the level of
demand for a firm's products
72
advertising clutter
the huge volume of advertisements that the public
is bombarded with
73
below-the-line
promotion
Promotion that is not a directly paid-for means of
communication
74
celebrity
endorsement
the use of famous people to promote a particular
brand or organisation
75
customer loyalty
schemes
reward systems use to encourage customers to
make repurchases, such as the use of price
discounts or free gifts for members of these
schemes
76
direct mail
the use of postal correspondence for promoting
an organisations good or services
77
direct marketing
promotional activities that aim to sell a product
straight to a customer rather than through an
intermediary
78
guerilla marketing
a promotional strategy that aims to ambush or
catch the attention of customers through unusual,
innovative, unconventional and/or shocking
techniques, on a relatively low budget
79
impulse buying
unplanned or unintentional purchases due to the
lure of eye-catching point of sales promotion
80
logos
a form of product differentiation that use a visual
symbol to represent a business, its brands and
products
81
merchandise
a retailer's range of goods that are available for
sale
82
personal selling
the use of sales staff to promote and sell goods
and/or services to customers, on a face-to-face
basis
83
point of sale (POS)
the promotion of goods in retail stores at the
place where customers can buy the goods
84
promotion
a component of the marketing mix. It refers to the
methods used to inform, persuade and/or remind
people about a firm's products or brands
85
promotional mix
the combination of individual ATL and BTL
promotional methods used by a business, such as
advertising, direct marketing, packaging and sales
promotion
86
public relations (PR)
business activities aimed at establishing and
protecting the desired image of an organisation.
PR is concerned with getting good media
coverage, usually without directly paying for it
87
publicity
the process of promoting a business and its
products by getting positive media exposure
without directly paying for it
88
sales promotion
short-term incentives designed to stimulate
demand for a product
89
social media
marketing (SMM)
the marketing practice of gaining internet traffic
through social media websites
90
social networking
any platform used mainly by individuals to build
social relationships between people, often
because they are friends or share things in
common.
91
slogans
catchphrases designed to represent the essence
of a business or its products using memorable set
of words
92
sponsorship
a promotional technique that involves funding,
supporting or donating resources for an event or
business venture in return for prominent publicity
93
telemarketing
a form of direct marketing that involves marketers
making telephone calls to existing and potential
customers
94
trade fairs
promotional events where firms exhibit and
showcase their products for sale to potential
customers
95
trade fairs
promotional events where firms exhibit and
showcase their products for sale to potential
customers
96
viral marketing
a promotional strategy that combines online
technologies with word of mouth (WOM)
techniques. It is usually dine through internet via
emails and social networks
97
word of moth
(WOM)
the spreading of marketing messages about an
organisation and the quality of its products or its
customer service.
98
the Boston matrix
a marketing tool for analysing the product
portfolio of a business. It shows whether products
have high or low market share and operate in high
or low market growth industries
99
brand awareness
the extent to which potential customers or the
general public recognise a particular brand. It is
usually expressed as a percentage of the sample
surveyed
100
brand development
a long-term product strategy that involves
strengthening the name and image of a brand to
boost its appeal and sales
101
brand loyalty
when customers buy the same brand of a product
time and time again. They are devoted to the
brand since they have brand preference over
other brand names
102
brand value
the premium that customers are willing to pay for
a brand over and above the value of the product
itself
103
branding
the use of an exclusive name, symbol or design to
identify a specific product or organisation. It
differentiates a product from similar ones offered
by rival firms /
104
cash coW
a term used by the Boston consulting group to
refer to any product that generates significant
money due to its large market share in a mature
market
105
consumer goods
products bought for personal consumption, such
as furniture, cars and food
106
dogs
products in the BCG matrix that have low market
share and operate in low growth or stagnant
markets. Hence, dogs do not generate much
profit or cash for a business
107
an extension
strategy
an attempt by marketers to lengthen the lifecycle
of a particular product, typically used during the
maturity or early decline stages of the product
life cycle
108
product
any physical or non-physical item that is
purchased by commercial or private customers
109
product
differentiation
any strategy used to make a product appear to
be distinct from others, such as quality, branding
and packaging
110
the product
lifecycle
the typical process that products go through from
their initial design and launch to their decline and
eventual withdrawal. Different products undergo
each of the five stages at varying speeds
111
product portfolio
the range of products or strategic business units
owned and developed by an organisation at any
one point in time
112
question marks (or
problem children)
products in a BCG matrix that compete in high
market growth industries but that have a low
market share. They consume a lot of cash but
generate little, if any profit
113
rising stars (stars)
products in the BCG matrix that have high or
rising market share in a high growth market
114
cost-plus pricing (or
mark-up pricing)
adding a percentage or predetermined amount of
profit to the cost per unit of output to determine
the selling price
115
loss leader pricing
setting the price of a product below the cost of
production. The purpose is to entice customers to
buy other products with high profit margins in
addition to purchasing the loss leader product
116
non-pricing
strategies
the methods used by a business to market its
products other than by focusing on price.
Examples include advertising, branding,
packaging and customer loyalty schemes
117
penetration pricing
setting low prices to gain entry into a new market.
Once the product has established itself, prices
can be raised
118
predatory pricing
temporarily setting prices so low that rivals,
especially smaller firms, cannot compete at a
profitable level
119
price
the amount paid by a customer to purchase a
good or service
120
price discrimination
charging different prices to different groups of
customers for the same product
e.g. adults being charged more for entry than
children
121
price leadership
used for best-selling products or brands in a
particular market. Customers perceive there to be
few substitutes for such products so the dominant
firm can set its own prices. Competitors set their
prices based on the price of the market leader
122
price skimming
involves initially charging high prices for
innovative or high-tech products. Price is reduced
as the novelty wears off and as substitute
products appear
123
price wars
involve businesses competing by a series of
intense price cuts to threaten the competitiveness
of rival firms
124
psychological
pricing
involves rounding down numbers to make prices
seem lower
125
agents (or brokers)
negotiators who help to sell a vendor's products,
such as real estate agents selling residential and
commercial property for their clients
126
channels of
distribution
the ways that a product gets from the
manufacturer to the consumer e.g. wholesalers,
agents, e-commerce, and vending machines
127
direct mail
promotional material sent directly to people's
homes or places of work, often with personal
details gathered from a database containing
information about known customers
128
direct marketing
any promotional activity that involves making
direct contact with customers, such as personal
selling and direct mail
129
distribution (or
place)
the process of getting the right products to the
right customers at the right time and place in the
most cost-effective way
130
distributors
independent businesses that act as intermediaries
by specialising in the trade of products made by
certain manufacturers
131
intermediaries
agents or other businesses that act as a middle
man in the chain of distribution
132
intermediation
the process of using intermediaries in the chain of
distribution between manufacturers and
consumers of a product
133
a one-channel
distribution network
a method of distribution that involves the use of a
single intermediary, such as an agent or retailer
134
place
the distribution of products i.e. how the products
get from the producer to the consumer
135
retailers
the sellers of products to the general public that
operate in outlets
136
speciality channel
of distribution
any indirect way to distribute products that does
not involve retailers i.e. without the use of
intermediaries
137
telemarketing
the use of telephone systems to sell products
directly to the consumer
138
a three-channel
distribution network
a type of distribution channel that uses three
intermediaries. It typically involves an agent,
wholesalers and retailers
139
a two-channel
distribution network
a method of distribution that involves the use of
two intermediaries. These are typically
wholesalers and retailers
140
wholesalers
businesses that purchase large quantities of
products from a manufacturer and then separate
the bulk-purchases into smaller units for resale,
mainly to retailers
141
a zero-level
distribution channel
(direct distribution)
skips any intermediaries i.e. the producer sells
directly to the customer
142
e-commerce
the buying and selling of goods and services via
electronic means. Most international marketers
rely on e-commerce to reach a global audience
143
B2B (business to
business)
e-commerce conducted directly for business
customers rather than the end user
144
B2C (business to
consumer)
e-commerce business conducted directlv for the
end user
145
C2C (consumer to
consumer)
an e-commerce platform that enables customers
to trade with each other
146
e-tailers
businesses that operate predominantly online
They are different from retailers that operate
physical stores and outlets
147
the elevator pitch
the idea that marketers onlv have a short time
span available to hold the interests of customers.
It is an important consideration for e-marketers
when designing their websites
148
price transparency
the openness in communication about prices
being charged by a business. e-commerce allows
customers to access price comparisons quite
easily
149
spam
unsolicited and superfluous marketing messages
via email or pop-up ads. The common purpose of
spamming is to advertise a firm's products
150
viral marketing
a promotional technique that relies on the use of
online social networks
151
Evaluate two methods available to the Fair Trade movement
to select a sample for its market research.
Suggested answer
The Fair Trade movement has been a key stakeholder in the drive
to promote a "fairer deal" for producers or growers of commodities
such as coffee beans. The intention is to give producers, who are
predominantly in the developing world, a much larger share of
the value added - which is similar to, but not exactly the same as,
profit - which the processed coffee gives to the final retailer.
The current share of this value added received by the growers is
very low as a percentage of the final purchase price. It is argued
that the retailer enjoys a significantly higher share of the value
added and this has been considered to be unethical.
A company which is essentially trying to promote itself as ethical
and socially responsible under the Fair Trade Agreement will
need to conduct its market research carefully, given that many
consumers may be unaware of the values of the movement and
may feel embarrassed when questioned if they show a certain
degree of "ethical ignorance". For this reason, a random sample
of a chosen population may be inappropriate. A quota
survey may also prove to be ineffective if the group selected is
unaware of the mission and vision of the Fair Trade movement
To increase accuracy of the data collected the firm may
have to pre-select its market research respondents. It could
perhaps choose a cluster group or a stratified sample with
tightly defined criteria such as monthly spending on ethically
traded goods and services. These groups may be small and
unrepresentative of a general population but the issues being
discussed here are unlikely to appeal to the mass market.
Finally, a few well-chosen "ambassadors" may be selected to go
out in to the market-place with the specific task of "spreading the
message" of the Fair Trade movement through "snowballing"
This would not be as costly as the other two methods. However,
the Fair Trade movement will need to ensure the ambassador is
giving a consistent message. Word-of-mouth recommendations
could also be difficult to measure objectively for research purposes.
Judgment
Even if the Fair Trade movement is able to penetrate local and
global markets, significant issues remain for non-governmental
organizations when collecting market research data. The
collection of random samples of consumers may lead to unbiased
results but will be costly. Clustering may lead to more precise
data around local niche markets and, in the short term, this may
be the optimal route to take before the Fair Trade movement
launches a more mass-market campaign.
152
Define marketing and describe the relationship with other business activities
Marketing is the process of identifying and satisfying customer needs and wants through the creation, promotion, and distribution of products or services. It is closely related to other business activities such as sales, advertising, branding, customer service, product development, pricing, and distribution. These functions work together to promote products, build strong customer relationships, and ultimately generate revenue for the company
153
Describe the difference between market and product orientation
Market orientation and product orientation are two different approaches to business management. Market orientation focuses on identifying and meeting the needs and wants of customers, while product orientation focuses on promoting the quality and features of the product. Market orientation is customer-centric, while product orientation is product-centric.
154
Describe the elements of a marketing plan
Executive summary: A brief overview of the marketing plan and its objectives.
Situation analysis: An analysis of the company's current market position, including the market size, competition, target market, and customer needs and preferences.
SWOT analysis: A detailed analysis of the company's strengths, weaknesses, opportunities, and threats.
Marketing objectives: Specific, measurable, and time-bound goals that the company aims to achieve through its marketing efforts.
Target market: A detailed description of the ideal customer or target audience for the company's products or services.
Marketing mix: A set of tactics that the company will use to reach and influence its target market. This includes product, price, promotion, and place (distribution).
Budget: An estimate of the resources required to implement the marketing plan, including costs associated with advertising, promotion, and other marketing activities.
Implementation and control: A plan for executing the marketing plan, tracking progress, and making adjustments as needed.
Evaluation and measurement: A plan for measuring the effectiveness of the marketing plan, including metrics such as sales, customer acquisition, and customer retention.
155
Outline possible target markets for XYZ plc’s new distribution service
Possible target markets for XYZ plc's new distribution service could include small and medium-sized businesses, e-commerce businesses, retail businesses, international businesses, and subscription-based businesses. The choice of target market will depend on XYZ plc's business strategy and the customer needs they aim to address
156
Market worth
% Of sales growth within the market as a whole, from one year to the next
157
Asset-led marketing
Basing marketing strategy ou the strengths of the business instead of prevely on what the customer want.
158
Manufacturer brands
Brands created by the producer of goods and services
159
Own-label brands
These are products which are manufactured for wholesalers ov retailers by other businesses, but they sell them under their name
160
Product (individual branding)
Product (individual) branding: Businesses can brand individual products and give
them individual brand names (e.g. a large number of washing powder brands sold
by the same producer Procter & Gamble: Ariel, Bold, Tide, etc.)
161
Family branding
Family branding: Family branding is when a business has a brand name, which includes
a number of different products. (e.g. Mars chocolate bar has its own energy drink
as well)
162
Company branding
Company (corporate) branding: This is when a business name is used as brand name
This is similar to the own label brands, but in thneed de he busines that sells and
produce the products names the brand after the name of the company.
