HSC Business- Marketing Definitions – Flashcards
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Marketing
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A system of interacting activities designed to plan, price, promote and distribute products to present to potential customers.
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Profit maximization
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The Maximum difference between total revenue and costs.
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The Marketing plan
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A document that lists activities aimed at achieving particular marketing outcomes in relation to goods or services.
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The marketing concept
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The business philosophy that states that all sections of the business are involved in satisfying a customer's needs/wants and achieving business goals.
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Production Approach
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(1820's - 1920's) The approach which was focused on producing goods and services in an attempt to create demand rather than respond to customers.
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Selling Approach
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(1920's - 1960's) The approach which used sales representatives to highlight the positive attributes and qualities of a product to convince a customer.
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Marketing approach 1
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The marketing approach aimed at identifying customer wants through market research
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Marketing approach 2
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The marketing approach involved with CSR, customer orientation and relationship marketing.
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Resource market
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Individuals/groups that are engaged in all forms of primary production
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Industrial market
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Industries/businesses that purchase products to use in the production of other products or in daily operations.
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Intermediate market
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Wholesalers and retailers who purchase finished products and resell them to make a profit
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Consumer markets
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Individual who plan to use or consume the products they buy
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Mass market
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The seller mass-produces, mass-distributes and mass-promotes one product to all buyers. Products in widespread use.
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Niche market
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Concentrates or micro-market, a narrowly selected market segment which consist of buyers who have specific needs or lifestyles.
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Customer choice
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The decisions of customers when they search for, evaluate, select and purchase goods and services.
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Psychological influences
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Influences within an individual that affects their behavior.
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Sociocultural influences
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Forces exerted by other people and groups that affect an individual's buying behavior.
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Boom
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A period of low unemployment, rising incomes and customers willing to spend.
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Bust
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A period of high unemployment, low incomes and customers reduce spending.
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Competition and consumer act 2010
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1.) Protecting consumers against undesirable practices 2.) Regulating trade practices that restrict competition
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Dishonest advertising
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When an advertisement uses words that are deceptive or claims that a product has some quality when it doesn't.
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Price discrimination
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The setting of different prices for a product in separate markets.
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Implied conditions
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The unspoken and unwritten terms of a contract.
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Warrantees
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A promise by a business to repair or replace faulty products.
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Ethical behavior
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Behavior that goes beyond legal requirements.
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Advertising
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A paid, non-personal message communicated through a mass-medium.
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Good taste in advertising
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Marketers ensuring that their advertising is not offensive.
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Sugging
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Selling Under Guise Survey. A sales technique disguised as market research.
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Situational analysis
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The most crucial step of the marketing plan which is used so that management has a precise understanding of the businesses current position and a clear position of its future direction.
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SWOT analysis
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The identification and analysis of the businesses strengths, weaknesses, opportunities and threats.
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Product lifecycle
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The stages that a product passes through of introduction, growth, maturity and decline.
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Introduction stage
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The stage of the product lifecycle where the business tries to increase consumer awareness and build a market share for the new product.
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Growth stage
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The stage of the product lifecycle where producers of the product actively pursue brand acceptance and market share.
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Maturity phase
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The stage of the product lifecycle where sales plateau as the market becomes saturated
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Decline stage
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The stage of the product lifecycle where sales begin to decline as the business faces several options.
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Market research
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The process of systematically collecting, recording and analysing information concerning a specific marketing problem.
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Marketing data
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The information relevant to the defined marketing problem
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Primary data
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Facts and figures collected from original sources for the purpose of the specific research problem
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Secondary data
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Information that has already been collected by some other person or organization
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Statistical interpretation analysis
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The processes of focusing on the data that represents averages, typical or derivations from typical patterns.
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Marketing objectives
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The realistic and measurable goals to be achieved through a marketing plan- what a business wants to accomplish through their marketing activities.
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Market share
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The businesses share of the total industry sales for a particular product.
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Product mix
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The total range of products offered
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Target market
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A group of present and potential customers to which a business intends to sell its product- the customers within share similar characteristics.
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Primary target market
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The market segment at which most of the marketing resources are directed.
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Mass marketing approach
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The approach where the seller mass produces, mass distributes and mass promotes one product to all buyers.
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Mass segmentation approach
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The approach where the total market is subdivided into groups of people who share one or more common characteristics.
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Marketing strategies
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The actions undertaken to achieve the businesses marketing objectives.
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The marketing mix
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The four P's (product, price, promotion, place)
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Implementation
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The process of putting the marketing strategies into operation- also involving the decisions that have to be made to ensure the effectiveness of the plan.
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Monitoring
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The process of checking and observing the actual progress of the marketing and the information collected is used in controlling.
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Controlling
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The process of using data collected from monitoring to compare planned performance against actual performance and taking respective corrective action to ensure that objectives are met.
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Financial forecast
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A businesses predictions for the future involving costs and revenue.
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Sales analysis
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The comparing of actual sales with forecast sales to determine the effectiveness of the marketing strategy.
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Market share analysis
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When a business compares its marketing strategies against those of its competitors- the evaluation reveals whether changes in total sales has resulted from the marketing strategies or an uncontrollable factor.
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The extended marketing mix
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The combination of people, processes and physical evidence to the four traditional elements of the marketing mix.
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Market segmentation
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When the total market is subdivided into groups of people who share one or more common characteristic.
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Segmentation variable
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The characteristics of individuals or groups that are used by marketing managers to divide a total market into segments.
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Product differentiation
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The processes of developing and promoting the differences between the businesses products or services and those of its competitors.
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Product positioning
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The technique in which markets try to create an image or identity for a product compared with the image of competing products.
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Product
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A good or a service that can be offered in exchange for the purpose of satisfying a need or a want.
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Brand
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A name, term, symbol, design or a combination of all of them that identifies a specific product and distinguishes it from its competitors.
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Packaging
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The development of a container and the graphic design for a product
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Labelling
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The presentation of information on a product or its package.
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Price
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The amount of money a customer is prepared to offer in exchange for a product.
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Cost-based/mark-up pricing
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A pricing method derived from the cost of producing or purchasing a product then adding a predetermined amount (mark-up)
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Cost + (Cost x mark-up%) = Price
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Formula for cost-based/mark-up pricing
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Market-based pricing
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A pricing method whereby prices are set according to the level of supply and demand in the market.
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Competition-based pricing
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A pricing method where the price covers costs and is comparable to the competitor's price.
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Pricing strategies
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The fine-tuning of pricing methods
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Price skimming
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When a business charges the highest price possible for a product.
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Price penetration
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When a business charges the lowest possible price for a product.
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Loss leader
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When a business sells a product at or below the cost price.
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Price points
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When a business sells products only at certain predetermined prices- prices are set no matter how much they cost at wholesale.
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Promotion
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The methods used by the business to inform, persuade and remind a target market about its products.
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Promotion mix
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The various promotion methods a business uses in its promotional campaign
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Personal selling
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The activities of a sales consultant directed to a customer in an attempt to make a sale
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Relationship marketing
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The development of long term, cost-effective and strong relationships with individual customers.
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Sales promotion
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The use of activities or materials as direct inducements to customers.
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Publicity
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Any free news story about a businesses product
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Public relation
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Activities aimed at creating and maintaining favorable relations between the business and its customers.
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Opinion leaders
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A person who heavily influences others
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Word of mouth
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When people influences each other during conversations.
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Place/Distribution
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Activities that make a businesses products available to customers when and where they want to purchase them.
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Distribution channels
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The routes taken to get the product from the factory to the customer
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Intensive distribution
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When the business wishes to saturate the market with its products
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Selective distribution
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When the business only uses a moderate proportion of outlets.
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Exclusive distribution
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When the business uses only one retail outlet for a product in a large geographic area.
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Physical distribution issues
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The activities concerned with the efficient movement of a businesses products from the producer to the customer.
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Warehousing
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A set of activities involves in receiving, storing and dispatching goods.
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People
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The quality of interaction between the customer and those within the business who deliver the service.
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Processes
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The flow of activities that a business will follow in it delivery of a service.
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Physical evidence
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The environment in which a businesses service will be delivered.
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E-marketing
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The application of marketing principles and techniques via electronic media and the internet.
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Social media advertising
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A form of online advertising using social media platforms to deliver targeted commercial messages to potential customers.
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Global marketing
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When a businesses marketing plan is modified and adapted to suit overseas markets.
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Global branding
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The worldwide use of a name, term, symbol or logo to identify the seller's product.
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Standardisation
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A global marketing strategy that assumes that they way product are used and the needs they satisfy are the same world over and require the same marketing mix.
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Customisation
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A global marketing strategy that assumes that the way products are used and the needs they satisfy differ between countries and require different marketing mixes.
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Global pricing
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How businesses coordinate their pricing policy across different countries.
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Standard worldwide pricing
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A global pricing strategy where customers are charged the same price for a product anywhere in the world.
