3.1 The nature of marketing
The process of identifying, anticipating and satisfying the needs of customers in a mutually beneficial exchange process.
What is marketing?
The process of gathering, analysing and producing data relevant to the marketing process.
What is market research?
The combination of elements that influence a customer’s decision on whether or not to buy a product. Also refered to as the '4 p's'
What is the marketing mix?
When different prices are charged for the same product
What is price discrimination?
Marketing plan to achieve the marketing objective.
What is a marketing strategy?
A small number of people gathered together to talk about a particular issue in open discussion.
What is a focus group?
The stages of a product over its lifetime
What is the product life cycle?
When different prices are changed at different times to reflect demand conditions.
What is dymamic pricing?
The rate at which the market as a whole is growing over a given time period.
What is market growth?
Research that uses data that already exists
What is secondary market research?
When marketing activities are changed to prevent sales from falling/decline.
What is an extension strategy?
When a business considers the costs of an item and adds on an amount or a percentage to ensure it makes a profit.
What is cost based pricing?
Something about your product which is perceived by your customers as unique.
What is unique selling point (USP)?
Research based on the opinions, values and beliefs of people.
What is qualitiative research?
A method of product portfolio analysis that examines the products of a business in terms of their market share and the market growth.
What is the Boston Matrix?
Takes account of the psychological effect of a price on customers.
What is psychological pricing?
Occurs when a business focuses on a particular (usually small) segment of the market
What is niche marketing?
Research that is numerical and based on relatively large samples and is therefore more statistically valid.
What is quantitative research?
Pricing strategy aimed at gaining market share via a low entry price.
What is penetration pricing?
The combination of ways in which the business communicates about its products.
What is the promotional mix?
A group of clearly identifiable customer needs and wants
What is a market segment?
A sampling method where all of themembers of the target population have an equal chance of selection.
What is a random sample?
When a high initial price is set for a product and this is reduced over time
What is price skimming?
Measures the number of visits to a website as a percentage of the number of impressions of a digital advert
What is the click through rate (CTR)?