109-116 marketing

• Marketing


  The understanding, anticipation and fulfilling of customer needs
• Market orientation


  A business bases its marketing mix on the perception of what the market (customer) wants, using market research and customer opinions
• Product orientation


  A business bases its marketing mix on the business's product strengths and capabilities, developing products based on what it is good at making or doing, rather than what a customer wants
• Asset-led marketing

  A marketing strategy based on a firm's own strengths, not solely on the customers' needs, including production techniques, distribution network, branding, experience, and image
• Marketing mix


  The marketing strategy that consists of product, price, promotion, and place
• Product portfolio


  The collection/range of all the goods and services offered by a business
• Brand


  Unique design, sign, symbol, and/or words used in creating a unique image that identifies a product and differentiates it from its competitors
• Unique selling point


  What distinguishes a product from ones sold by competitors, may involve branding, lowest price, best quality, or first of its kind
• Differentiation


  Distinguishing a product or service from others by making it different or appearing to be different from similar products sold by rivals, to attract more customers
• Product life cycle


  The stages a product goes through from initial development and introduction to growth, maturity, saturation, and decline, measuring sales over time
• Product life cycle stages

  2. Introduction (cash flow may still be negative)

  3. Growth (cash flow increases and becomes positive)

  4. Maturity (cash flow remains positive)

  5. Decline (cash flow begins to fall)
• Extension strategy


  A way of prolonging/lengthening the life of a product that stops it from reaching the decline stage, such as promotions, new flavours, new packaging
• Boston Matrix


  A technique that allows businesses to analyse their product portfolio, categorising products according to market growth and (relative) market share into stars, cash cows, dogs and question marks
• Penetration pricing


  Charging a low price to penetrate the market, used to enter a market with much competition and price elasticity
• Price skimming


  Charging a high price to maximise profits on each item sold for a limited period, suitable when the product is price inelastic in the short term, to gain as much profit as possible for a new product while it remains unique
• Cost-plus pricing


  Adding a profit percentage to the average cost of producing the good/service
• Competitive pricing


  Considering what competitors are charging and deciding pricing strategy based on that
• Psychological pricing


  Pricing products to make customers believe they are paying less than they really are, e.g. 99p
• Contribution pricing


  Price will be based on the variable costs plus a contribution towards overheads and profits, orders can be priced based on different contribution basis for different products
• Above the line promotion


  Advertising through mass media such as print, broadcast, targeting a wide audience
• Below the line promotion


  Promotional strategies used to target consumers more directly such as personal selling, packaging, direct mail, sales promotions, public relations, and sponsorship
• Distribution channel


  The path/route taken by a product as it goes from the manufacturer/producer to the ultimate/final consumer, could include wholesaler, retailer, or direct selling
• Multi-channel distribution


  Using a combination of distribution channels, e.g. retailers, own stores, own website, other online platforms
• Digital media


  Information broadcast through a screen, including text, audio, video, and graphics transmitted over the internet
• 1. E-tailing


  Electronic retail or e-shopping, a form of electronic commerce that allows consumers to directly buy goods or services from a seller over the internet
• 1. M-commerce


  The buying and selling of goods and services online through wireless handheld devices such as mobile phones and apps