Chapter 20 - Marketing

• marketing concept - ensures that the business always focuses on the needs of consumers first, before it develops a good or service
• marketing - identifying the needs of customers and then producing and selling products and services to satisfy those needs profitly
• the market strategy examines the overall business objectives and develops marketing activities to help the business to achieve these goals
• the marketing plan is used to implement the firm's marketing strategy
• market segmentation - the market is divided into different sections to enable the firm to target its products and services more effectively at the relevant consumers
• geographic segmentation - the market is divided into different geographic zones or areas
• demographic segmentation - the market is divided into segments based on certain common characteristics such as age, gender, income and occupation
• psychographic segmentation - the market is divided into segments based of beliefs, attitudes, social staus and lifestyles
• a target market is a the specific group of consumers who have common needs and wants - the business aims its products and services at this market
• benchmarking - setting a standard and comparing performance against this standard
• a niche market is a small group of consumers in a larger market who have different needs from the majority of consumers
• peoduct positioning - creating a positive image for the product that stays in consuemrs minds
• patent - gives exclusive legal ownership rights to the inventor of a product or process
• brand name - a distinctive name given to a business and the goods and services it develops
• trademark - logos that are legally registered by a business to distinguish them and their products from competition
• own-brand products - products that are sold by retailers under the retailers name and logo
• rebranding - a marketing strategy to change the name, logo, image or products of a firm - can occur as a result of changes in the target market or advances in technology
• wholesaler - buys in large quantities from producers and sell these products in smaller quantities to retailers
• agents - sell the producer's goods and services in a particular area
• retailer - buys products from either a wholesaler or a producer
• sales promotion - short term gimmicks used by businesses to attract consumers to buy products and services
• public relations - a market technique used to create a positive public image for a business and the products or services it sells
• penetration pricing - the business sets a price lower than that of its competitors' products in order to gain a greater share of the market quickly
• predatory pricing - a business sets a price lower than that of its competitors' products to push them out of the market
• loss leader (below-cost selling) - the business sells a product below cost price - the firm hopes that when customers visit their shop, they will purchase more items, thus increasing the firm's sales
• premium pricing - the business charges a higher price than competitors in the market - gives the consumers the impression that the product is of a superior quality
• price skimming - a high price is charged when the product is launched so that the business can recover RandD costs quickly before competitors enter the market
• psychological pricing - this strategy is based on the theory that certain prices have a bigger psychological impact on consumers
• mark-up pricing - the business adds a profit percentage to the cost price of the item
• tiered pricing - consumers choose the price level that fits their budget - allows a business to gain market share at different price points and is common in the motor industry
• price discrimination - different segments of the market are charged different prices for the same product
• bundle pricing - the business sells multiple items together for a lower price than they would cost separately
• informative advertising - he advertisement gives consumers information abut the product
• reminder advertising - reminds consumers about the brand and its products
• persuasive advertising - persuades consumers that they need the product - can be used in the launch stage of the product life cycle to generate interest in the product and persuade consumers to buy
• generic advertising - a specific good or service from an industry rather than a particular brand or company - often financed by a state-owned organisation or a number of business in the industry
• comparative advertising - the brand or product is advertised a superior to those of other competitors based on quality, price or choice