Unit 9 Principles of Marketing
The advantage gained by offering more superior goods or services than competitors
The actions necessary to achieve the aims set by the business
Objectives that are Specific, Measurable, Achievable, Realistic and Time based
An individual who makes a purchase from a business to use for themselves or give to others
The percentage of the total sales of a product accounted for by one company
CIM definition: “Marketing is the management process responsible for identifying, anticipating and satisfying customer needs profitably.”
The income of a business. Sales revenue is the money earned from sales and is calculated by multiplying quantity sold by the average selling price.
How familiar customers are with the qualities, logos, images or strap lines of a particular brand of goods or services
A distinguishing symbol, mark, logo, name, word, sentence or a combination of these items that companies use to distinguish their product from others in the market. (Investopedia definition)
The document which sets out the marketing activities necessary to achieve the business aims.
Goods that are used and replaced regularly, such as soap or toothpaste
Business to Business (B2B)
Selling to industrial buyers or retailers and not direct to the public.
Business to Consumer (B2C)
Selling to private individuals and households who buy goods and services for their own use.
All the possible customers who might buy a product or service.
Inexpensive items we buy often, such as chocolate, milk and magazines.
Items that last such as televisions and furniture.
Capital goods are used to make other products. Only businesses buy capital goods.
Items bought from a shop or online store for, or by, an end user.
The largest market possible for an item, without any allowances for income, personal interests or preferences.
A smaller market than a mass market, usually for a specialist product which takes into account specific needs.
Buyers and sellers of products. Can be divided into different types, such as convenience goods, durable goods and luxury goods.
Sales of different types of services. Can be divided into different types, such as financial services, personal services and business services.
These businesses create products to meet the identified needs and wants of their prospective customers.
These businesses create innovative products in their area of expertise.
No frills approach to selling goods that have already been produced. Example: Amazon
Revenue comes from other businesses advertising and promoting their goods and services. Example: Google
These businesses build a relationship between the brand and the consumer and focus on responding to their needs. Example: Marks and Spencer
A market that is full of similar products which now have little value to consumers
The basic product designed to meet user needs
The core product plus additional benefits or services
Unique selling point (USP)
A special feature of a product (or service) that makes it easy to promote and sell
A plan to revive sales by adapting a product or launching in new markets
The range of products produced by the business
Alternative methods of deciding the best price to charge
Elasticity of demand
The degree to which demand (and sales) increase as prices fall and vice versa
Customer relationship management (CRM)
Obtaining data on customers and using this to improve customer relationships and encourage customer loyalty
The amount of output produced by a person or industry
Being competent and making the best use of resources, such as time and money
A private individual who buys and uses goods and services
The main features of a particular group of custoemrs
The characteristics of an audience, usually including age and gender
The research of secondary data by studying reports or journals and checking facts and figures online
Make your business noticeably different from your competitors
Selling your products direct to the market yourself
The route that a product or service takes to get to the market
Gap in the market
When a customer need is not currently met by existing products or services
Finding out customer views and opinions
A section of the market with common characteristics
The combination of product, price, place and promotion – the 4Ps
To identify and divide customers into groups sharing certain characteristics
When a business looks at its own position in the market and assesses how it could be affected by trends and developments
The customer that a business aims to supply
The section of the market the business aims to supply