Vocabulary:

Marketing: the management process responsible for identifying, anticipating and satisfying
consumers' requirements profitably.
Customer base: the group of customers a business sells its products to
Market: all customers and consumers who are interred in buying a product and have the
financial resources to do so
Market - a market is a place where buyers and sellers come together to buy and sell goods and
services
Target market - individuals or organisations identified by a business as the costumer or
consumer of its products
Customer - an individual or business that buys goods and services from a business
Consumer - the final user of a product
Consumer markets - markets for goods and services bought by the final consumer
Industrial markets - markets for goods and services bought by other business to use their
production process
Business environment - the combination of internal and external factors that influence the
operations of a business
Free trade- no barriers exist that might prevent trade between different countries
Niche marketing- developing products for a small segment of the market
Mass marketing - selling the same product to the whole market
Market segment - a part of the whole market in which consumers have specific characteristics
market segmentation - dividing the whole market into segments by consumer characteristic and
then targeting different products to each segment
geographic segmentation - dividing consumers in the market by geographical area
Demographic segmentation - dividing consumers in the market by factors such as age, gender,
income, ethnic backgoriund and social class
Psychographic segmentation - dividing consumers in the market by lifestyle, personalities and
attitudes
Market research - the process of collecting, recording and analysing data about the sotumers,
competitors and market for a product
Market oriented - products are developed based on consumer demand is identified by market
research
Product oriented - the firm decides what to produce and then tries to find buyers for the product
Primary research - the collection of first hand data for the specific needs of the firm
secondary research - the collection of data from second-hand sources
Quantitative research - the collection of numerical data that can be analysed using statistical
techniques
Qualitative research - the collection of info about consumers’ buying behaviour and their
opinions about products
Sample - a representative sample of the target market selected to take part in market research
Marketing mix - four marketing decisions needed for the effective marketing of a product
Four Ps- the right product at the right price with the right promotion in the right place
Brand image - the general impression of a product held by consumers
Product life cycle - the pattern of sales of a product from introduction to its withdrawal for the
market
Extension strategies - marketing activities to extend the maturity stage of a product
Market skimming - setting a high price for a new product that is unique or very different from any
other product on the market
Penetration pricing - setting a low prie to attract customers to buy a new product
Competitive pricing - setting a price similar to that of competitors’ products which are already
established in the market
Price leadership - smaller firms set their price based on the price set by the dominant in the
industry
Loss- leader pricing - setting a price of a small number of products at below cost to attract
customers into the outlet in the hoep that theu will buy other products priced to earn profit
Cost-plus pricing - setting price by adding a fixed amount to the cost of making or buying the
product
Price elasticity of demand - measures by how much demand for a product changes when there
is a change in its price
Price inelastic demand - the percentage change in demand is less than the percentage change
in price
Price elastic demand - the percentage change in demand is greater than the percentage change
in price
Channels of distribution - how a product gets from the producer to the final consumer
Wholesaler - a busines that buys products in bulk from producers and then sells them to
retailers
Retailer - shops and other outlets that sell goods and services to the final consumer
Middlemen - these are the intermediaries in the channels of distribution
Direct selling - the products is sold by the producer directly to the final consumer
Promotion - marketing activities used to communicare with customers and potential customers
to inform and persuade them to buy a business product
Advertising - paid for communication with consumers which uses printed and visual media.
Informative advertising - information about the product communicated to create product
awareness and attract their interest
Persuasive advertising - communication with consumers aimed at getting them to buy a firm's
product
Below the line promotion - promotion that is not paid for communication bus uses incentives to
encourage consumers to buy
Sales promotion - incentives used to encourage short temr increases in sales or repeat
purchases
Personal selling - sales staff communicate directly with the consumer to achieve a sale and form
and long term relationship between firm and consumer
Direct mail - printed materials which are sent directly to addresses of customers ]
Sponsorship - payment by a business to have its name or products associarws with a particular
event
E-commerce- use of internet and other technologies by businesses to market and sell goods
and services to customers
Marketing strategy - a plan to achieve the marketing objective using a given level of resources
Legal controls - laws that control the activity of businesses
Barriers to trade - usually taxes, quotes or bans that one country places on the goods of other
countries to prevent or increase the cost of them entering that country
Domestic market - the market for goods and services in the business own country
First channel of distribution - producer sells to final consumer
Second channel - producer sells to retailer, etailers to final consumers
Third channel - two middlemen are used retailer and wholesaler. Producer sell big amount to
wholesaler, wholesaler sells small amount to retailer, retailer to final consumer
Final channel - uses agent when business enters foreign market.

Things to consider when choosing methods of distribution

Methods of promotion:
- Advertising:
- Sales promotion; coupons, point of sale display, Loyalty reward schemes, Competition
and games
- Personal selling: for expensive products and for direct contact with customer like car
selling
- Direct mail: leaflets, printed material delivered to mailboxes
- Sponsorships

Legal controls:
- Protect consumers from faulty and dangerous goods
- Prevent business from using advertising to mislead consumers
- Protect consumers from being exploited in industries where there is little or no
competition
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