unit 2 key words

• What is an advertising campaign?


  A series of advertisements, often using different advertising media
• What are advertising media?


  The methods by which a business can advertise a product, including newspapers, TV, and radio
• What is census data?


  Data collected by the Government every 10 years, questioning the entire population on their income, occupation, etc.
• What does competitor pricing involve?


  Setting a price based on prices charged by competitor businesses for a similar product
• How does cost-plus pricing work?


  It adds a percentage of profit to the total costs of making a product to determine the selling price
• What does the term 'decline' refer to in marketing?


  When sales are falling as the product or service is seen by customers as being old and they switch to newer products and services
• Why is design important in products?


  It is an important element in a number of different products, especially where style and technology work together
• What is digital distribution?


  The distribution of goods and services digitally by downloading from a website
• What are focus groups used for?


  They are selected small groups of customers who give their opinion on products
• What does growth indicate in a product's sales?


  When sales are growing strongly as the new product or service becomes known
• How is innovation related to design?


  Innovation is the improvement on an original idea, often involving new processes and closely linked to design
• What is internal data?


  Data already within a business based on past performance
• What is an interview in the context of market research?


  A question sheet filled in by the person conducting the interview
• What does the introduction stage refer to in marketing?

  When a product or service is first on sale
• What is invention in marketing?


  The introduction of a totally new product or feature
• What is the purpose of marketing?


  Finding the needs of consumers and demonstrating how a business fulfills those needs in a way that increases sales
• What is market data?


  Information that helps marketing decisions, including data on market shares, changes in demand, and the effect of promotions
• What is market research?


  The collection of data on consumer habits to help decision-making in marketing
• What does market segmentation involve?


  Splitting the market for a product into different parts, or segments
• What is market share?


  The percentage of total sales of a product that a business has made
• If a business sells 20,000 products and the total market for that product is 50,000, what is the market share?


  40%
• What does maturity refer to in the product life cycle?


  When sales are at their highest level
• What are the P’s of the marketing mix?

  • Price
  • Product
  • Promotion
  • Place
• What is penetration pricing?


  When a price is set lower than the competitor businesses, often used by new businesses to break into a market
• What does physical distribution involve?


  The distribution of goods using a physical presence such as a shop or office
• What are point of sale promotions?


  Includes price reductions, loss leaders, competitions, and free samples
• What is primary research?


  Data collected first-hand, often in the form of surveys, sometimes referred to as field research
• What is the product life cycle?


  The life of a product, usually shown as a graph divided into four stages: introduction, growth, maturity, and decline
• What is promotional pricing?


  Where prices are reduced to give products a boost or to sell off old stock, commonly seen as sales in shops
• What is qualitative data?


  Data based on opinions of those being asked
• What is quantitative data?


  Data collected that is based on facts or numbers, usually easier to analyze than qualitative data
• What is a questionnaire?


  A question sheet filled in by the consumer
• What is research and development?


  Used to help introduce both new and existing products, involving testing products in a laboratory or conducting market research by interviewing customers
• What is secondary research?


  The collection of data using research or information provided by others, such as magazines, journals, and the internet, often called desk research
• What is skimming in pricing strategy?


  Where a new product is more advanced than that of competitors, and a price is set high as some customers are willing to pay higher prices to own the newest technology
• What is a target market?


  The group of customers to whom a business aims to sell its products, which may include other businesses as well as consumers
• What are trials used for in marketing?


  Used to test whether customers will buy a product