Unit 9 Principles of Marketing

Competitive advantage
Competitive advantage
The advantage gained by offering more superior goods or services than competitors
Corporate objectives
Corporate objectives
The actions necessary to achieve the aims set by the business
SMART objectives
SMART objectives
Objectives that are Specific, Measurable, Achievable, Realistic and Time based
Customer
Customer
An individual who makes a purchase from a business to use for themselves or give to others
Market share
Market share
The percentage of the total sales of a product accounted for by one company
Marketing
CIM definition: “Marketing is the management process responsible for identifying, anticipating and satisfying customer needs profitably.”
Revenue
Revenue
The income of a business. Sales revenue is the money earned from sales and is calculated by multiplying quantity sold by the average selling price.
Brand awareness
Brand awareness
How familiar customers are with the qualities, logos, images or strap lines of a particular brand of goods or services
Brand
Brand
A distinguishing symbol, mark, logo, name, word, sentence or a combination of these items that companies use to distinguish their product from others in the market. (Investopedia definition)
Marketing plan
The document which sets out the marketing activities necessary to achieve the business aims.
Consumables
Goods that are used and replaced regularly, such as soap or toothpaste
Business to Business (B2B)
Business to Business (B2B)
Selling to industrial buyers or retailers and not direct to the public.
Business to Consumer (B2C)
Business to Consumer (B2C)
Selling to private individuals and households who buy goods and services for their own use.
Market
All the possible customers who might buy a product or service.
Convenience goods
Convenience goods
Inexpensive items we buy often, such as chocolate, milk and magazines.
Durable goods
Durable goods
Items that last such as televisions and furniture.
Capital goods
Capital goods
Capital goods are used to make other products. Only businesses buy capital goods.
Consumer goods
Consumer goods
Items bought from a shop or online store for, or by, an end user.
Mass market
The largest market possible for an item, without any allowances for income, personal interests or preferences.
Niche market
Niche market
A smaller market than a mass market, usually for a specialist product which takes into account specific needs.
Goods market
Buyers and sellers of products. Can be divided into different types, such as convenience goods, durable goods and luxury goods.
Services market
Sales of different types of services. Can be divided into different types, such as financial services, personal services and business services.
Market orientation
Market orientation
These businesses create products to meet the identified needs and wants of their prospective customers.
Product orientation
Product orientation
These businesses create innovative products in their area of expertise.
Sales model
No frills approach to selling goods that have already been produced. Example: Amazon
Advertising model
Revenue comes from other businesses advertising and promoting their goods and services. Example: Google
Marketing model
These businesses build a relationship between the brand and the consumer and focus on responding to their needs. Example: Marks and Spencer
Saturated market
Saturated market
A market that is full of similar products which now have little value to consumers
Core product
Core product
The basic product designed to meet user needs
Augmented product
Augmented product
The core product plus additional benefits or services
Unique selling point (USP)
Unique selling point (USP)
A special feature of a product (or service) that makes it easy to promote and sell
Extension strategy
Extension strategy
A plan to revive sales by adapting a product or launching in new markets
Product portfolio
Product portfolio
The range of products produced by the business
Pricing strategies
Pricing strategies
Alternative methods of deciding the best price to charge
Elasticity of demand
The degree to which demand (and sales) increase as prices fall and vice versa
Customer relationship management (CRM)
Customer relationship management (CRM)
Obtaining data on customers and using this to improve customer relationships and encourage customer loyalty
Productivity
Productivity
The amount of output produced by a person or industry
Efficiency
Efficiency
Being competent and making the best use of resources, such as time and money
Consumer
A private individual who buys and uses goods and services
Customer profile
The main features of a particular group of custoemrs
Demographics
Demographics
The characteristics of an audience, usually including age and gender
Desk research
Desk research
The research of secondary data by studying reports or journals and checking facts and figures online
Differentiate
Differentiate
Make your business noticeably different from your competitors
Direct distribution
Selling your products direct to the market yourself
Distribution channels
Distribution channels
The route that a product or service takes to get to the market
Gap in the market
Gap in the market
When a customer need is not currently met by existing products or services
Market research
Market research
Finding out customer views and opinions
Market segment
Market segment
A section of the market with common characteristics
Marketing mix
Marketing mix
The combination of product, price, place and promotion – the 4Ps
Segment
To identify and divide customers into groups sharing certain characteristics
Situational analysis
When a business looks at its own position in the market and assesses how it could be affected by trends and developments
Target customer
Target customer
The customer that a business aims to supply
Target market
The section of the market the business aims to supply