IB Business Unit 3 Test (Marketing) – Flashcards
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market leaders
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refers to firms with the largest market share in a particular market
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market orientation
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a marketing approach adopted by businesses that are outward looking by focusing on making products that they can sell, rather than selling products that they can make
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market share
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measures the value of a firms' sales revenues as a percentage of the total sales revenue in the industry. (firms sales revenue x industry's sales revenue) x 100
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market size
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refers to the magnitude of an industry, usually measured in terms of the value of sales revenue from all the businesses in a particular market, per time period
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marketing
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the management process of predicting, identifying and meeting the needs and wants of customers in a profitable manner
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marketing audit
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an examination of the current climate in which businesses operates. market research is integral to this investigation.
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consumer markets
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markets that cater for private individuals (the general public)
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industrial markets/producer markets
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markets that cater for organizations (businesses and governments)
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marketing objectives
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targets that the marketing department wishes to achieve - increased sales revenue, higher market share, increased market leadership, improved product and brand awareness, developing new products, enhanced brand perception
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unethical marketing practices
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product misrepresentation, exploitation of weaknesses, unsubstantiated claims, pester power, confusion market
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unethical promotional techiniques
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pester power, confusion marketing, ambush marketing, infiltration marketing, popup advertisements
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marketing mix (4 Ps)
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products, price, place, promotion
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marketing plan
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document outlining a firm's marketing objectives and the marketing strategies to be used to achieve those objectives
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marketing planning
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systematic process of devising marketing objectives ; appropriate marketing strategies to achieve these goals
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marketing strategy
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the plan and use of the marketing mix to achieve marketing objectives (marketing development, product development, diversification, product onnovation)
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producer products
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industrial products sold to other businesses to further the production process, such as raw materials, components, and machinery
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consumer products
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sold to the end user (private individuals)
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price
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the amount that customers pay for a particular good or service
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promotion
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the strategies used to attract customers to buy a firm's products
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examples of promotional activities
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advertising, sales promotion, sponsorship, publicity
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place
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describes the methods of distributing products to consumers
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market research
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refers to marketing activities designed to discover the opinions, beliefs, and preferences of potential and existing customers.
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niche marketing
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targets a specific and well defined market segment
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advantages of niche marketing
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better marketing focus because a specific market segment is targeted, less competition (businesses can charge higher prices), firms become highly specialized in meeting the needs and wants of their niche target market
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disadvantages of niche marketing
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small which limits the number of potential customers in the market, have fewer opportunities to exploit economies of scale, threat of larger firms entering the market might endanger the survival of businesses operating in niche markets
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market segment
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refers to a distinct group of customers with similar characteristics and similar wants or needs
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ethical marketing
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refers to the moral aspects of an organization's marketing strategies
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mass marketing
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refers to undifferentiated marketing. different market segments are targeted to maximise sales volume
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packaging
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form of non price competition that focuses on the ways in which a product is presented to the consumer
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differentiation
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act of distinguishing a business or its products from rivals in the industry (8P's: product, price, promotion, place, people, procesess, physical environment, packaging)
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position map
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visual aid that shows customer perceptions of a product of brand in relation to others in the market, often by comparing perceptions about price and quality
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primary research
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market research that involves gathering new data first hand for a specific purpose (ex: surveys, interviews, focus groups, observations)
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process
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part of the extended marketing mix which refers to the methods and procedures used to give clients the best possible experience
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secondary research
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involves the collection of second-hand data and information that already exists. this means that the data and information have previously been gathered by others
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segmentation
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process of categorising customers into distinct groups of people with similar characteristics and similar buying habits for market research and targeting purposes
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unique selling point
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any aspect of a business, product or brand that makes it stand out from those offered by competitors
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targeting
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refers to the market segments that a business wishes to sell to
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qualitative market research
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involves getting non numerical answers and opinions from respondents
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quantitative market research
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relies on a much larger number of responses to get hard answers
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boston (bcg) matrix
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marketing planning tool that helps managers to plan for a balanced product portfolio
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stars
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high market growth & high market share
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question marks
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high market growth & low market share
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cash cows
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low market growth & high market share
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dogs
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low market growth & low market share
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sampling
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practice of selecting a small group of a population for a particular market for primary research purposes
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quota sampling
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a certain number of people from different market segments is selected
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random sampling
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involves giving everyone in the population an equal chance of being selected for the sample
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stratified sampling
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involves subdividing the market into segments that share homogeneous or very similar characteristics
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brand extension
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refers to the use of an existing and successful brand name to launch a new or modified version of the product, thus prolonging its life cycle
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snowballing
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market research carried out with individuals who then suggest other friends, family members, or colleagues, thereby increasing the sample size
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branding
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form of differentiating a firm's prodcuts from those of its competitors
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importance of branding
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legal instrument, risk reducer, image enhancer, revenue earner
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brand awareness
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measures the extent to which potential customers or the general public recognise a particular brand
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brand development
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refers to the marketing process of improving and enlarging the brand name in order to boost sales revenue and market share
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fast moving consumer goods
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everyday convenience products sold in retail outlets such as super markets
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brand loyalty
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occurs when customers buy the same brand of product time and time again (advantages: helps businesses maintain or improve market share, charge premium prices for their products, acts as a barrier to entry in highly competitive markets, major role in future success of a business, helping to prolong the product and brand's life cycles)
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consumer perishable
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products that do not last very long. they are not as frequent or stable and can carry high profit margins
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consumer durables
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products that last for a relatively long time. they can take up a rather large proportion of consumers incomes so they are purchased irregularly
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specialty products
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exclusive and highly expensive products that take up a significant proportion of the average consumers income
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product
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a physical good or intangible service
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methods of product differentiation
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color, size, quality, design, after sales care, packaging, purchase terms, customer relations management
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product life cycle
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shows the different stages that a product is likely to go through (research and development, launch, growth, maturity, decline)
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cost plus pricing
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involves adding a percentage or predetermined amount of profit to the cost per unit of output to determine the selling price
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penetration pricing
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sets a relatively low price to help establish a new product in the industry
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price skimming
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used for technologically advanced and innovative products. since new product development can be expensive, a high price is set to recoup the costs of research and development
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above the line promotion
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any form of paid for promotional method through independent mass media sources to promote a business, its brands, or its products. (tv advertising, radio advertising, cinema, newspaper advertising, magazines, outdoor advertising)
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price leadership
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strategy often used for the best selling products or brands in a particular market
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predatory pricing
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temporarily reduces price in an attempt to force rivals out of the industry as they cannot ocmpete profitably
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below the line promotion
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refers to the use of non-mass media promotional activities, allowing the business to have direct control (branding, slogans, packaging, word of mouth promotion, direct marketing, direct mail, sales promotion, point of sales promotion, publicity, sponsorship)
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promotional mix
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the range of ATL and BTL methods used to market a product as part of the larger marketing mix (advertising, personal selling, public relations, sales promotion)
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guerrilla marketing
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promotional strategy that aims to ambush or catch the attention of customers through unusual innovative, unconventional/shocking techniques, on a relatively low budget
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sponsorship
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promotional technique that involves funding, supporting or donating resources for an event or business venture in return prominent publicity
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word of mouth
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refers to the spread of information from one person to another through oral communication
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aida
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attention, interest, desire, action
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agents
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negotiators who act on behalf of buyers and vendors of a product
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channels of distribution
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refers to the means used to get a product to the consumer
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distributors
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independent businesses that act as intermediaries by specialising in the trade of products made b y certain manufacturers
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intermediaries
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agents or other businesses that act as a middle person in the chain of distribution
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retailers
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sellers of products to the general public that operate in outlets
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wholesalers
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businesses that purchase large quantities of products from a manufacturer than separate or break the bulk purchases into smaller units for resale, mainly to retailers
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e-commerce
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trading of goods and services via the internet, electronic systems and computer networks
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b2b
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business to business - refers to ecommerce conducted directly for business customers rather than the end user
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b2c
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business to consumer - refers to ecommerce business conducted directly for the end user (the consumer)
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e-tailers
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businesses that operate mainly online
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costs of e commerce
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set up costs, finance charges, fraudulent trade, spam,unsuitable for some business and customers
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benefits of e commerce
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source of revenue, channel of distribution, greater flexibility, reduced packaging, higher overheads, operating costs, more choice and convenience
