Aqa Gcse (9 1) Business Marketing 3.5 Flashcards
Exchange
Occurs when someone gives up something in return for something else e.g. a business exchanges a product for money
Need
Something that needs to be fulfilled for us to survive
Want
What we would like to satisfy our needs
Customer
Someone who buys a product from a business
Consumer
Someone who uses goods and services produced by businesses
Sales volume
Measures the number of items sold
Sales value
Measures the revenue generated
Segmentation
Occurs when a market is divided into different groups of needs and wants
Market research
The process of gathering, analysing and processing data relevant to marketing decisions
Market segment
A group of buyers with similar needs within the overall market
Primary market research
Research that uses data gathered for the first time
Secondary market research
Research that uses data that has been gathered already
Marketing mix
Refers to all the activities influencing whether or not a customer buys a product. The elements of the mix can be analysed using the 4 Ps: price place product promotion.
Product portfolio
The collection of products that a firm produces
Boston matrix
A way of analysing a product's share and growth in their market
Dog
A product that has a low market share in a low growth market
Cash cow
A product that has a high market share in a low growth market
Question mark/Problem child
A product that has a low market share in a fast growth market
Star
A product that has a high market share in a fast growth market
Product life cycle
Shows how the sales of a product may change over time
Extension strategies
Attempts to maintain the sales of a product and prevent it from entering the decline stage of the product life cycle
Price skimming
Setting a high price for a product when it first enters the market
Penetration pricing
Launching a new product at a low price to achieve fast sales
Competitive pricing
Matching the prices that competitors charge
Loss leader
Products sold at a loss in the hope that the customer will buy other items from the business where they make a profit
Cost plus pricing
Where products are priced by covering the cost of it to the retailer and adding a percentage on top
Promotional acitivities
The different ways in which a firm tries to communicate with its customers
Sales promotions
Short term incentives to encourage customers to buy
Advertising
Involves paid for communications
Promotional mix
The combination of promotional methods used by a business to communicate with its customers
Distribution channel
Describes how the ownership of a product passes from the producer to the final customer
Wholesalers
They buy in large quantities from a producer and sell to retailers (break bulk)
Retailers
Shops that sell direct to the customer
E-commerce
Involves online trading
M-commerce
Involves online trading via a mobile phone
Direct marketing
Occurs when there is a direct link from the producer to the customer with no intermediaries
Intermediaries
A link in the distribution chain between the producer and the customer