Chapter 1

Brand Name a name, term, sign, symbol, design or any other feature that allows consumers to
identify the goods and services of a business and to differentiate them from those of competitors.
Market a set of arrangements that allows buyers and sellers to communicate and trade in a
particular range of goods and services.
Marketing a management process involved in identifying, anticipating and satisfying consumer
requirements profitably.
Market Share the proportion of total sales in a particular market for which one or more
businesses or brands are responsible. It is expressed as a percentage and can be calculated by
value or volume.
Mass Market a very large market in which products with mass appeal are targeted.
Niche Market a smaller market, usually within a large market or industry.
Online Retailing or e-tailing the retailing of goods online.
Consumer Panels groups of customers are asked for feedback about products over a period of
time.
Database an organised collection of data stored electronically with instant access, searching and
sorting facilities.
Focus Groups a number of customers are invited to attend a discussion about a product run by
market researchers.
Market Research the collection, presentation and analysis of information relating to the
marketing and consumption of goods and services.
Primary Research or Field Research the gathering of ‘new’ information that does not already
exist.
Qualitative Research the collection of data about attitudes, beliefs and intentions.
Quantitative Research the collection of data that can be quantified.
Quota Sampling respondents are selected in a non-random manner in the same proportion as
they exist in the whole population.
Random Sampling respondents are selected for interview at random.
Respondents people or organisations that answer questions in a survey.
Sample a small group of people that must represent a proportion of a total market when carrying
out market research.
Secondary Research or Desk Research the collection of data that is already in existence.
Stratified Sampling a method of quota sampling in which respondents are chosen at random.
Target Population the total number of consumers in a given group.
Adding Value offering extra features when selling a product, such as high-quality customer
service, which helps to exceed customer expectations.
Competitive Advantage an advantage that enables a business to perform better than its rivals in
the market.
Market Maps or Perceptual Maps typically a two dimensional diagram that shows two of the
qualities or characteristics of a brand and those of rival brands in the market.
Market Orientated an approach to business which places the needs of consumers at the centre
of the decision-making process.
Market Positioning the view consumers have about the quality, value for money and image of a
product in relation to those of competitors.
Market Segments parts of a whole market where a particular customer group has similar
characteristics.
Product Differentiation an attempt by a business to distinguish its product from those of
competitors.
Product Orientated an approach to business which places the emphasis upon the production
process and the product itself.
Reposition change the view consumers have about a product by altering some of its
characteristics.
Unique Selling Point (or proposition) the aspect or feature of a product that clearly distinguishes
it from its rivals.
Chapter 2
Complementary Goods goods that are purchased together because they are consumed together
Demand the quantity of a product bought at a given price over a given period of time.
Demand Curve a line drawn on a graph that shows how much of a product will be bought at
different prices.
Inferior Goods goods for which demand will fall if income rises or rise if income falls
Normal Goods goods for which demand will rise if income rises or fall if income falls
Substitute (goods) goods that can be bought as an alternative to others, but perform the same
function.
Subsidy a grant given to producers, usually to encourage production of a certain product.
Supply the amount of a product that suppliers make available to the market at any given price in
a given period of time.
Supply Curve a line drawn on a graph that shows how much of a product sellers are willing to
supply at different prices.
Equilibrium Price or Market Clearing Price the price where supply and demand are equal.
Excess Demand the position where demand is greater than supply at a given price and there are
shortages in the market.
Excess Supply the position where supply is greater than demand at a given price and there are
unsold goods in the market.
Total Revenue or total expenditure the amount of revenue generated from the sale of goods
calculated by multiplying price by quantity in a given period of time.
Price Elastic Demand a change in price results in a greater change in demand.
Price Elasticity Of Demand the responsiveness of demand to a change in price.
Price Inelastic Demand a change in price results in a proportionately smaller change in demand.
Discretionary Expenditure non-essential spending or spending that is not automatic.
Income Elastic the percentage change in demand for a product is proportionately greater than
the percentage change in income.
Income Elasticity of Demand where the responsiveness of demand to a change in income
Income Inelastic where the percentage change in demand is proportionately less than the
percentage change in income.
Inferior Goods goods for which demand will fall if income rises or rise if income falls
Normal Goods goods for which demand will rise if income rises or fall if income falls
Chapter 3
Boston Matrix a 2x2 matrix model that analyses a product portfolio according to the growth rate
of the market and the relative market share of products within the market.
Extension Strategies methods used to prolong the life of a product.
Marketing Mix the mix of marketing elements used by a company, which are usually known as
the 4Ps: product, price, place, and promotion.
Marketing Objectives goals that a business attempts to achieve through its marketing activities.
Marketing Strategy a set of plans that aim to achieve a specific marketing objective.
Product Lines a group of products that are very similar.
Product Portfolio the collection of products a business is currently marketing.
Unique Selling Point the aspect or feature of the product that differentiates it from those of
rivals
Consumer Durables goods that can be used repeatedly over a period of time, such as cars and
household appliances
Design Mix the range of features that are important when designing a product.
Ergonomics the study of how people interact with their environment and the equipment they use
– often in the workplace.
Ethical Sourcing using materials, components and services from suppliers that respect the
environment, treat their workforce well and generally trade with integrity.
Product Design the process of creating a new product or service.
Recycling making use of materials that have been discarded as waste
Resource Depletion the using up of natural resources.
Waste Minimization reducing the quantity of resources that are discarded in the production
process.
Above-The-Line promotion placing adverts using the media
Advertising communication between a business and its customers where images are placed in
the media to encourage the purchase of products
Below-The-Line promotion any promotion that does not involve using the media
Emotional Branding the practice of using the emotions of a consumer to build a brand
Generic Brands products that only contain the name of the product category rather than the
company or product name
Manufacturer Brands brands created by the producers of goods or services
Merchandising a promotion specifically at the point of sale of a product
Own-Label, Distributor or Private Brands products that are manufactured for wholesalers or
retailers by other businesses
Point of Sale any point where a consumer buys a product.
Promotion an attempt to obtain and retain customers by drawing their attention to a firm or its
products
Public Relations an organisation’s attempt to communicate with interested parties
Sales Promotions methods of promoting products in the short term to boost sales
Sponsorship making a financial contribution to an event in return for publicity
Viral Marketing any strategy that encourages people to pass on messages to others about a
product or a business electronically

Competitive Pricing pricing strategies based on the prices charged by rivals.

Cost Plus Pricing adding a percentage (the mark-up) to the costs of producing a product to get
the price.
Mark-Up the percentage added to unit cost that makes a profi t for a business when setting the
price.
Penetration Pricing setting a low price when launching a new product in order to get
established in the market.
Predatory or Destroyer Pricing setting a low price forcing rivals out of business
Pricing Strategy the pricing policies or methods used by a business when deciding what to
charge for its products.
Psychological Pricing setting the price slightly below a round figure.
Skimming or Creaming setting a high price initially and then lowering it later.
Unit Costs the same as average cost (total cost divided by output).
Agent or Broker an intermediary that brings together buyers and sellers.
Breaking-bulk dividing a large quantity of goods received from a supplier before selling them
on in smaller quantities to customers.
Direct Selling producers selling their products directly to consumers
Distribution the delivery of goods from the producer to the consumer
Distribution Channel the route taken by a product from the producer to the customer.
Intermediaries links between the producer and the consumer.
Retailer a business that buys goods from manufacturers and wholesalers, and sells them in small
quantities to consumers
Wholesaler a business that buys goods from manufacturers and sells them in smaller quantities
to retailers