definitions

• marketing: The identification, anticipation and satisfaction of changing customer needs in order to add value to products in a profitable way.
• niche marketing: promoting and selling a product to a small, clearly identifiable segment of a larger market
• mass marketing: promoting a similar product in similar ways to a very large, often international market
• market segmentation: a clearly defined section of a larger market
• target market: the particular market segment at which a business business its products
• market-orientated business: a business that focuses on finding the needs and wants of the customers before producing the product
• market research: the process of collecting, analysing and interpreting data about customer, competitors and the market
• primary market research: collecting and interpreting new, original, first hand data
• secondary market research: analysing and interpreting already collected, second hand data
• sampling: the process of selecting a smaller group from a larger population that is reliable and representative of the characteristics and attitudes of the total population
• marketing mix: the combination of product, price, promotion and place that a business uses to market its products to existing or potential customers
• product: part of the marketing mix and includes new product development, branding, packaging and product life cycle
• place: part of the marketing mix, includes how the product is distributed to the final customer through channels
• price: includes pricing strategies -> skimming, penetration, cost plus, competitive, promotional, psychological

  • also contains elasticity of demand
• promotion: the promotion element is about communicating with existing and potential customers through advertising media
• brand image: the personality and reputation associated with a product created by marketing activities
• customer loyalty: customer or brand loyalty is achieved when a customer makes regular or repeated purchases of a particular brand or product rather than a competitor's product
• product life cycle: graph showing the levels of sales over time which a product might be expected to go through from launch, through growth, to maturity/saturation and eventually decline
• extension strategies: a marketing strategy designed to extend a product's life cycle and prevent sales from declining
• cost plus pricing: when a mark up is added to the average cost of a product to get the selling price
• competitive pricing: setting prices similar to the competitors; at a level that customers are willing to pay
• penetration pricing: when a new product is launched, a low price is set to attract customers. After the initial introductory phase, the prices are increase and hoped that the customers will buy it
• price skimming: when the first mover product is launched at a high price but is lowered over time to attract customers. Price skimming also helps recoup development costs
• promotional pricing: reducing the price of a product to attract more customers with special offers such as buy one get one free, money coupons or discounts
• price elasticity of demand: measures the responsiveness of demand to changes in the price of a product
• price inelastic demand: for any change in price, there is a proportionally small change in demand
• distribution channels: distribution channels are ways in which a business gets its products to its customers
• wholesalers: they buy in large quantities from producers to sell these products in small quantities to retailers
• retailers: retailers buy from producers and wholesalers, selling products to the final customer
• direct distribution: involves producers selling directly to customers without using intermediaries
• marketing budget: a financial plan outlining the money available for marketing and how it will be used
• e-commerce: the selling and buying of goods or services over the internet