Definitions

• marketing mix:

  a term which is used to describe all the activities which go into marketing a product or service (activites are summarised as the 4 Ps - price, promotion, place, product)
• USP:

  the special feature of a product that differentiates it from the products of competitors
• Brand name:

  the unique name of a product that distinguishes it from other brands
• Brand loyalty:

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

  an image or identity given to a product which gives it a personality of its own and distinguishes it from its competitors' brands
• Product Life Cycle:

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

  the physical container or wrapping for a product. It is also used for promotion and selling appeal
• Extension strategy:

  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 product prices, usually when selling online, depending on the level of demand
• Price elastic demand:

  is where consumers are very sensitive to change 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
• Promotion:

  is where marketing activities aim to raise customer awareness of a product or brand, generating sales and helping to create brand loyalty
• Advertising:

  paid for communication with potential customers about a product to encourage them to buy it
• Informative advertising:

  is where the emphasis of advertising or sales promotion is to give full information about the product
• Persuasive advertising:

  is advertising or promotion which is trying to persuade the consumer that they really need the product and should buy it
• Target audience:

  refers to people who are potential buyers of a product or service
• Sales promotions:

  are incentives such as special offers or special deals aimed at consumers to achieve short-term increases in sales
• Marketing budget:

  is a financial plan for the marketing of a product or product range for a specified period of time