Business Definitions
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- Created by: laura#17
- Created on: 09-01-18 12:41
Marketing
The anticipating & satisfying of customers' wants in a way that delights the consumer & also meets the needs, aims & restraints of the organisation
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Marketing Objectives
The goals of the marketing function of an organisation
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Sales Volume
Measures the number of items sold or produced
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Sales Value
Measures the financial worth of items sold: volume x average price
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Market Size
The volume of sales of a product or the value of the sales of a product, within the whole market
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Market Growth
The percentage change in sales or a generic product or service over a period of time, throughout the whole market: [(market size this year - market size in previous year)/market size in previous year] x 100 = %
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Sales Growth
The percentage change in sales for a specific business or product, over a certain period of time: [(Sales in this year - Sales in previous year)/Sales in previous year] x 100 = %
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Market Share
The percentage/proportion of total sales of a product or service, achieved by a firm or specific brand: [Sales of one product or company/Total sales in the market] x 100
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Brand
A name, sign, symbol, slogan or design linked to a particular product or service which differentiates it from its competitors
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Brand Loyalty
A measure of the degree of attachment that a consumer has for a particular product or brand. High brand loyalty will reduce the likelihood of the consumer switching to another brand & encourage price inelasticity
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Market Research
The systematic & objective collection, analysis & evaluation of information which is used to assist the marketing process
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Primary Market Research
Collection of commissioning of information, gathered first-hand, for the purpose of the intial user. Examples include Observation and all types of Surveys
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Secondary Market Research
Information which has already been collected for a different purpose than this user intends. Examples include Newspapers, Competitors records and Loyalty cards
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Qualitative Market Research
Collection of information about the market based on subjective factors such as opinions & reasons
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Quantitative Market Research
Collection of information about the market, based on numbers
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Market Mapping
Analysis of markets by looking at features that distinguish different products or firms, for example price and quality
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Sampling
Gathering data from a group of respondents whose views or behaviors should be representative of the whole market
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Confidence Interval/Margin of Error
The plus or minus figure used to show the accuracy of statistical results arising from sampling
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Correlation
A statistical technique used to establish the strength of a relationship between 2 sets of values
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Causal Link
A link between 2 sets of information or types of behavior
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Extrapolation
Using previous patterns of numerical data in order to predict values in the future
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Price Elasticity of Demand (PED)
The degree to which the quantity demanded of a good or service is affected by a change in price: % change in quantity demanded/% change in price
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Income Elasticity of Demand (YED)
The degree to which the quantity demanded of a good or service is affected by a change in consumer income: % change in quantity demanded/% change in income
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Price Inelastic
When price rises, quantity demanded falls by a smaller %, answer smaller than +/- 1
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Price Elastic
When price rises, quantity demanded falls by a larger %, answer greater than +/- 1
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Unitary Elasticity
Sales revenue will be the same, whether price/income rises or falls
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Income Elastic
Luxury Products; YED greater than 1; demand changes by a larger % than income
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Income Inelastic
Necessities; rise in demand smaller than rise in price; YED between 0 and 1
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Negative Income Elasticity
Inferior Goods; demand falls as incomes rise (better alternatives)
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Market Segmentation
The classification of customers or potential customers into groups or sub-groups (market segments), each of which responds differently to different products or marketing approaches
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Market Targeting
Deciding on the consumer market segment on which you intend to focus; to which you intend to sell your product
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Niche Marketing
Targeting a product or service at a small segment of the larger market
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Mass Marketing
Aiming a product at most or all of the market
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Market Positioning
Where your product or brand stands in relation to the products or brands of other businesses
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Competitive Advantage
A benefit which allows a business to gain & retain more customers than its competitors
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Marketing Mix
The elements of a business's approach to marketing that enable it to satisfy & delight its customers
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Product
The good or service provided by the business for its customers
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Price
The sum of money paid by the customer for a unit of a product
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Promotion
The process of communicating with customers or potential customers; can describe communication with other interested groups, such as shareholders or suppliers
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Place
The location at which the purchase of a product is made and the means of distributing it to the customer
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People
Anyone who represents the firm and comes into contact with the firms customers
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Process
Ensuring that an efficient service is provided to prospective & actual customers
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Physical Environment
Nature & appeal of the physical evidence a customer will observe during a transaction, such as company uniform, brochures, lorries or stationery; tangible features of a service that a customer can feel & experience
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Industrial (or business-to-business) Marketing
Where a firm sells its product to another business
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Consumer Marketing
Where a firm targets individual consumers with its product
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Consumer Products
Products that are purchased in order to directly satisfy the needs & wants of customers
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Convenience Products
Products that are purchased frequently & with minimum thought and effort by consumers
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Shopping Products
Products that consumers want to be readily accessible, but which involve thought and planning before purchase
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Speciality Products
Products whose purchase is planned by consumers who will seek out these products for purchase
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Boston Matrix
A tool of product portfolio analysis that classifies products according to the market share of the product & the rate of growth of the market in which the product is sold
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Product Portfolio
The range of products brands provided by a business
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Product Life Cycle
The stages that a product passes through during its lifetime - development, introduction, growth, maturity & decline
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Extension Strategies
Methods used to lengthen the life cycle of a product by preventing or delaying it from reaching the decline stage of the product life cycle
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Product Development
When a firm creates a new or improved good or service, for release into an existing market
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Penetration Pricing
A strategy in which low prices are set to break into a market or achieve a sudden increase in market share
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Price Skimming
A strategy in which a high price is set to yield a high profit margin, appeals to early adopters
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Loss Leader
Making a loss, or more realistically, very low profit margin on 1 product, in order to attract people to the store in the hope that they will also buy other products in passing
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Psychological Pricing
Pricing items at a psychologically cheaper price, such as £9.99 instead of £10.00 because it appeals to the mind as cheaper
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Price War
Occurs when rival companies undercut each other's price cuts in order to increase sales volume by keeping existing customers & attracting new customers. This leads to reduced profit margins
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Branding
The process of differentiating a product from its competitors through the name, sign, symbol, design or slogan linked to that product
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Advertising
The process of communicating with customers or potential customers through specific media (e.g. TV, newspapers)
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Multi-channel Distribution
Exists when firms use more than 1 type of distribution channel
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Digital Marketing
Anticipating & satisfying of consumer wants through the use of different forms of technology, including social media, search engine, digital displays & other forms of marketing
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E-commerce
The buying and selling of goods & services through the use of electronic media
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Other cards in this set
Card 2
Front
The goals of the marketing function of an organisation
Back
Marketing Objectives
Card 3
Front
Measures the number of items sold or produced
Back

Card 4
Front
Measures the financial worth of items sold: volume x average price
Back

Card 5
Front
The volume of sales of a product or the value of the sales of a product, within the whole market
Back

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