business unit 3

• Marketing


  identifying customer wants and satisfying them profitably
• Customer


  is a person, business or other organisation which buys goods and services from a business
• Customer Loyalty


  is when existing customers continually buy products from the same business
• Customer Relationships


  is communicating with customers to encourage them to become loyal to the business and its products
• Market Share


  is the percentage of total market sales held by one brand or business
• Consumer


  buys goods or services for personal use - not to -re-sell
• Mass Market


  is where there is a very large number of sales of a product
• Niche Market


  is a small, usually specialised, segment of a much larger market
• Market Segment


  is an identifiable sub-group of a whole market in which consumers have similar characteristics or preferences
• Market Research


  is the process of gathering, analysing and interpreting information about a market
• Product-Oriented


  business is one whose main focus of activity is on the product itself
• Market-Oriented


  business is one which carries out market research to find out consumer wants before a product is developed and produced
• Marketing Budget


  is a financial plan for the marketing of a product or product range for some specified period of time. It specifies how much money is available to market the product or range, so that the Marketing department knows how much it may spend
• Primary Research


  is the collection and collation of original data via direct contact with potential or existing customers. Also called field research
• Secondary Research


  uses information that has already been collected and is available for use by others. Also called desk research
• Questionnaire


  Is a set of questions to be answered as a means of collecting data for market research.
• Online Surveys


  requires the target sample to answer a series of questions over the internet
• Interviews


  involve asking individuals a series of questions often face-to-face or over phone
• Focus Groups


  is a group of people who are representative of the target market
• Sample


  is the group of people who are selected to respond to a market research exercise, such as questionnaires
• Random Sample


  is when people are selected at random as a source of information for market research
• Quota Sample


  is when people are selected on the basis of certain characteristics (such as age, gender or income) as a source of information for market research
• Marketing Mix


  is a term which is used to describe all the activities which go into marketing a product or service. These activities are often summarised as the four Ps - Product, price, place, promotion
• USP


  Is the special feature of a product that differentiates it from the products of competitors (unique selling point)
• Brand Name


  Is the unique name of a product that distinguishes it from other brands
• Brand Loyalty


  is when consumers keep buying the same brand again and again instead of choosing a competitor's brand
• Brand Image


  is an image or identity given to a product which gives it a personality of its own and distinguishes it from its competitors brand
• Packaging


  is the physical container or wrapping for a product, It is also used for promotion and selling appeal.
• Product Life Cycle PLC


  describes the stages a product will pass through from tis introduction, through its growth until it is mature, and then finally its decline
• Extension Strategy


  is a way of keeping a product at the maturity stage of the life cycle and extending the cycle
• Cost-plus Pricing

  is the cost of manufacturing the product plus a profit mark-up
• Competitive Pricing


  is when the product is priced in line with or just below competitors' prices to try to capture more of the market
• Penetration Pricing

  is when the price is set lower than the competitors' prices in order to be able to enter a new market
• Price Skimming


  is where a high price is set for a new product on the market
• Promotional Pricing


  is when a product is sold at a very low price for a short period of time
• Dynamic Pricing


  is when businesses change the product prices, usually when selling online, depending on the level of demand
• Price Elastic Demand


  is where consumers are very sensitive to changes in price
• Price Inelastic Demand


  is where consumers are not sensitive to changes in price
• Distribution Channel


  is the means by which a product is passed from the place of production to the customer
• Agent


  is an independent person or business that is appointed to deal with the sales and distribution of a product or range of products