Marketing Glossary – HSC Business Studies – Flashcards
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Marketing
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Tasks aimed to connect the business with customers in order to sell a product
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Role of marketing
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Promoting the business' goods or services to generate funds for the other business function in order to achieve goals
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Production approach
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Focus on developing a quality product and assuming consumers will buy it
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Selling approach
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Focus on the skill of selling the product
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Marketing approach
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Focusing on the customers' needs and wants at every stage of the operations process
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Intermediate markets
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Market where products are sold to companies that then sell the products to other customers
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Industrial markets
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Markets in which products are sold to other businesses to be used to make other products
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Resource markets
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Markets in which the customers are in the primary sector of the economy
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Consumer markets
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Markets in which goods and services are sold to individuals
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Mass markets
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Market with a large amount of potential customers with varied characteristics
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Niche markets
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Market with a small amount of customers with a specific shared characteristic (demographic, phsycographic, geographic)
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Customer choice
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What drives customers to make purchasing decisions
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Psychological factors
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Personal factors: personalities and motivations of potential customers
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Sociocultural factors
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Cultural background and socioeconomic status of potential customers
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Economic factors
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Economic state and changes: interest rates and interest rates
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Governmental factors
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Laws and policies that impact on customer choices
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Deceptive/misleading advertising
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Advertising unfairly creating an inaccurate impression about some aspect of the product
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Price descrimination
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Same products sold for a different price in a different market
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Implied conditions
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Unwritten conditions that bind sellers of products
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Warranties
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Guarantees that a business makes about the product
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Ethical issues
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Moral dilemas in marketing
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Fair competition
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Legislation in place to try and ensure a good and fair level of competition
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Sugging
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Selling under the guise of (disguise of) research
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Situational analysis
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Step of the marketing plan that involves reviewing the position of the business or product
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SWOT analysis
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The strengths and weaknesses (internal), opportunities and threats (external) of a business
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Product life cycle
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The four stages (1. R&D, 2. growth, 3. maturity, 4. saturation/post-maturity) the product undertake from the time it enters the market until the time it ends
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Market research
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Collection and analysis of information about the factors that impact on the firm's success
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Primary research
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Gathering new data first-hand for a specific study (eg. observations, surveys, experiment, interviews and focus groups)
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Secondary research
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Gather data that already exists (eg. statistics, journals, financial reports, competitor information, newspapers)
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Marketing objectives
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Goals for the marketing department that are aimed at achieving the business objectives
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SMART marketing objectives
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Specific, Measurable, Achievable, Realistic and Time-bound
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Financial forecast
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Estimation of the firm's future financial situation, based on the information in the marketing plan
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Monitoring and controlling
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Measuring the business' actual performance against its planned performance
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Target market
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Group of customers that the business intends to focus on marketing its products
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Target market identifiers
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Demographic, geographic and psychographic factors
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Marketing strategies
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Plans and goals that are going to help the business meet its marketing objectives
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Marketing mix (4 Ps)
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Price, product, promotion, place (distribution)
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Implementation of a marketing plan
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Putting marketing strategies into practice through the marketing mix
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Market segmentation
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Process of dividing the total markets into groups/segments
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Product differentiation
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Creating characteristics of a product/service that differentiates it from a competitor
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Product positioning
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Shaping the way that customers see the product and/or business compared to tis competitors
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P1: Product
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A substance that is manufactured for sale
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Core product
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Basic product that customers look to buy
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Actual product
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Core product and the additional physical aspects a customer pays for (eg. style)
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Augmented product
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Includes additional aspects beyond these physical factors that add value for customer (eg. warranty)
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Branding
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Giving a name/logo/"look" to the product that also represents the business
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Packaging
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The way in which a product is presented
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P2: Price
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The amount of money payed for a good/service
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Pricing methods
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Overall approaches to pricing products providing a basic framework that marketers can use
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Cost-based pricing method
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Cost of production + a mark up (percentage)
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Competition-based pricing method
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Based on competitors prices (higher, lower or equal to)
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Market based pricing method
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Based on the rate of supply and demand
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Pricing strategies
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The different pricing techniques that marketers can use to achieve business objectives
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Skimming pricing strategy
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Use of high price to directly maximise profit
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Loss leaders pricing strategy
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Selling goods below cost to attract customers (and hope that they will then buy full priced products)
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Price point pricing strategy
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Specific prices at which customers are more likely to buy a product (eg. $99.99 instead of $100.00)
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Penetration pricing strategy
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Price is placed below that of the competition to grow (penetrate into) the business' market share
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Relationship between price and quality
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Higher prices generally equalling higher quality products
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P3: Promotion
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Communication from the business to potential customers
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Advertising
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Paid messages used to promote a product using media
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Personal selling
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Direct, two-way communication between the seller and potential buyer
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Sales promotions
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Short-term reduction on products (eg. discounts, cashback)
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Publicity and public relations
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Seek to create a positive image for the company and to increase exposure for the product without paying for advertisements
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Opinion leaders
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Early adopters of products convincing people to follow their advice
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Word of mouth
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The impact that influential individuals have over sales by affecting the perceptions of other potential customers about a product
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P4:Place (Distribution)
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How the products are transferred from the producer to the final customer
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Distribution channels
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The routes that producers can use to move products to the final customers
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Direct distibution channels
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The producer sells the products to the final customer without the use of intermediaries
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Indirect distribution channels
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The producer uses intermediaries to sell the product to the final customer (eg. mobile carriers)
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Wholesalers
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Businesses that buy large quantities of the product from the producer and then sell it on to retailers
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Retailers
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Businesses that buy the producer's product and sell it to their final customer
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Agents
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Intermediaries that arrange transactions between the producer and the customer but do not sell the product themselves (eg. real estate agent)
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Channel choice
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How many locations will be used to sell a business' goods (intensive, selective or exclusive)
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Intensive channel choice
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Producer seeks to have its goods sold in as many location as possible
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Selective channel choice
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Producer chooses to limit the number of locations in which its goods are sold
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Exclusive channel choice
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Producer chooses to have its products sold in only one location
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Physical distribution issues
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Choosing betweens modes of transport, warehousing (more or less) and amount of inventory
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Transport physical distribution
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Choosing between air and/or road or water and/or rail
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Warehousing physical distribution
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Choosing between more or less warehouses
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Inventory physical distribution
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How much stock to keep
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The 3 additional Ps (for services and modern day marketing)
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Physical evidence, people and processes
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P5: Physical evidence
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Giving potential customers exposure to the actual product so that they can judge the product and be persuaded to purchase
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Physical aspects of services
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Location, equipment, business cards, signs etc
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P6: People
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Selecting the right people for the job and instructing them properly
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P7: Processes
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Systems used for delivering a service
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E-marketing
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Internet marketing
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Global marketing
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Process of marketing a product that is sold all around the world
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Global branding
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Using the same brand and marketing strategies all around the world
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Standardisation
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The same marketing mix strategies being used in different markets
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Customisation
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Adapting the marketing mix strategies for different markets
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Global pricing
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Whether to use a uniform price across all countries or to customise pricing strategies per country
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Competitive positioning
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The business might need to change certain factors (product, price, promotional strategies and packaging) based on country to make sure that their product is competitive within that market
