Marketing- understanding what product/service customer requires, research, communicate
benefits of product, marketing mix (product/price/promotion/place)
Marketing objective- marketing target business hopes to achieve (e.g. boost market share),
steers direction of business, decision making more focused, should be measurable/have a
time frame
Marketing strategy- medium/long term plan on how to achieve marketing objectives
Marketing segmentation- dividing market by age/gender/income to find areas that’re
underserved
Ensuring marketing is effective- market research on needs/wants of target market, product
must match consumer preferences, be sold at fair price from appropriate distribution channel
with good promotional strategy, consumer tastes change (need to respond quickly)
Effective marketing- identifying target market (understand your customers,
age/sex/personality/lifestyle, focus advertising on these people (young market- use social
media)), segment market (preferences can vary within a market, range of products targeted
at each segment (healthy-dark chocolate, children-Freddo’s)), consistent brand image (don’t
want mixed messages, if aiming for premium market, don’t sell in Poundland)
Short termism- when firm pursues strategies that boost profit in short term, may damage long
term profitability, short-termist approach to marketing usually ineffective (firms with dominant
market position may raise prices to boost profits, but is exploiting customers (new
competitors can enter with lower prices and steal market share), sales driven marketing
(performance related pay) can create dishonest forceful sales approach, if exposed bad
publicity will hit demand/fines)
The market- where buyers and sellers interact, face to face or online
Mass marketing- creating products/services that have universal appeal, aims at whole market,
creating a generic brand (brands so associated with the product, that its referred to by the
brand name (Hoover, Coke), high sales volume (mass production, economies of scale), long
lasting wide appeal
Niche marketing- small segment of larger market, specialised wants/needs, product designed
to meet specific needs, lower sales volume, usually higher price (less alternatives), niche
needs to be large enough to be profitable, specific wants/needs can be changeable, high costs
(small scale productions)
Product differentiation- extent to which consumers perceive your brand as different from
others
Market size- if a business dominates a market, growing its sales may risk becoming a
monopoly, better to grow the sector as whole, can sponsor research into the product (a
publishing about health benefits of a product will grow its demand), usually controlled by
external factors, measured through sales volume or sales value
Market share- proportion of total sales of product/service by a business compared to market
as whole, more controlled by internal factors (success of marketing)
Brand- name/image/logo that helps product/service stand out from competitors, branding key
way to achieve product differentiation, add value (increasing price consumer willing to pay),
strong brands can charge higher prices, increase perceived quality
, Dynamic markets- subject to rapid/continuous change, online retailing (access to more
consumers, longer trading hours, cheaper than rent/physical employees, easier to collect
data, costs (website development), high competition, lacks personal connection (less
customer service), how markets change (consumer tastes/preferences/demographics (ageing
population/affluence)/level of competition/legislation (environmental standards)), innovation
(product (improvement of existing products), process (improvement of existing production
processes)), market growth (measurement of change in entire market, % of original size,
increasing population/incomes/tastes), adapting to change (market research to meet changing
needs, invest in new products/processes/staff training, innovate (first mover advantage)
Competitior- rival business operating in same market offering similar goods/services/subsitute
Competition- rivalry among sellers trying to increase profits/market share when at least 2
businesses providing goods/services to same market, keeps businesses from becoming
complacent, controls price/quality/customer service, encourages innovation/improvement,
direct competition (sale of similar product), indirect competition (different products but
competing for customers disposable income, airlines competing with trains)
Risk- potential threat to business success, can be quantified/calculated/prepared for, risk
management (process of identifying/assessing/preparing for potential threats), internal
(technical failures, loss of key staff), external (currency fluctuations)
Uncertainty- inability to predict future evenets/outcomes, unexpected (recessions, energy
prices, interest rates)
Market orientation- approach to marketing with focus on needs of consumer, consumers
centre of marketing decisions, high demand/profits/valued brand image, requires market
research
Product orientation- approach to marketing with focus on what firm does best/characteristics
of the product, create product then find market, believes product will sell itself, as consumer
preferences change product may fall out of favour, marketing (large sales force to convince
consumers to buy, sales incentives, if they can’t sell costs/prices will be cut)
Market research- process of systematically gathering/analysing data from consumers to
influence business decisions, can reduce risk of launching new products/entering new
markets, identify potential demands/how much they can charge/assess competitors
Primary research- gathering information directly from consumers in target market,
surveys/interviews/ observations/focus groups/test marketing (trialling product in small
quantities), aimed specifically at own research objectives, up to date, can reach wide range,
not available to competition, expensive/time consuming (hire specialist research agency), can
be biased (researchers guide answers/influenced by others in focus group)
Secondary research- using data that already exists, internet, purchase market reports,
government publications, wide range of information, readily available so quicker, often free or
cheaper, SMOs less able to carry out own research, may have to pay if from specialist data
company, available to competition, may be outdated, not tailored to own specific needs so
may lack relevance
Qualitative research- data based on thoughts/opinions, in-depth, find
motivation/attitudes/buying habits, focus groups (reveal problems/ opportunities for company,
reveal what’s important to consumers (function/aesthetics/price), individual interviews
(remove risk of opinions being swayed by one individual)
Quantitative research- numerical data, larger sample, needs representative sample,
questionnaires need to be unbiased
benefits of product, marketing mix (product/price/promotion/place)
Marketing objective- marketing target business hopes to achieve (e.g. boost market share),
steers direction of business, decision making more focused, should be measurable/have a
time frame
Marketing strategy- medium/long term plan on how to achieve marketing objectives
Marketing segmentation- dividing market by age/gender/income to find areas that’re
underserved
Ensuring marketing is effective- market research on needs/wants of target market, product
must match consumer preferences, be sold at fair price from appropriate distribution channel
with good promotional strategy, consumer tastes change (need to respond quickly)
Effective marketing- identifying target market (understand your customers,
age/sex/personality/lifestyle, focus advertising on these people (young market- use social
media)), segment market (preferences can vary within a market, range of products targeted
at each segment (healthy-dark chocolate, children-Freddo’s)), consistent brand image (don’t
want mixed messages, if aiming for premium market, don’t sell in Poundland)
Short termism- when firm pursues strategies that boost profit in short term, may damage long
term profitability, short-termist approach to marketing usually ineffective (firms with dominant
market position may raise prices to boost profits, but is exploiting customers (new
competitors can enter with lower prices and steal market share), sales driven marketing
(performance related pay) can create dishonest forceful sales approach, if exposed bad
publicity will hit demand/fines)
The market- where buyers and sellers interact, face to face or online
Mass marketing- creating products/services that have universal appeal, aims at whole market,
creating a generic brand (brands so associated with the product, that its referred to by the
brand name (Hoover, Coke), high sales volume (mass production, economies of scale), long
lasting wide appeal
Niche marketing- small segment of larger market, specialised wants/needs, product designed
to meet specific needs, lower sales volume, usually higher price (less alternatives), niche
needs to be large enough to be profitable, specific wants/needs can be changeable, high costs
(small scale productions)
Product differentiation- extent to which consumers perceive your brand as different from
others
Market size- if a business dominates a market, growing its sales may risk becoming a
monopoly, better to grow the sector as whole, can sponsor research into the product (a
publishing about health benefits of a product will grow its demand), usually controlled by
external factors, measured through sales volume or sales value
Market share- proportion of total sales of product/service by a business compared to market
as whole, more controlled by internal factors (success of marketing)
Brand- name/image/logo that helps product/service stand out from competitors, branding key
way to achieve product differentiation, add value (increasing price consumer willing to pay),
strong brands can charge higher prices, increase perceived quality
, Dynamic markets- subject to rapid/continuous change, online retailing (access to more
consumers, longer trading hours, cheaper than rent/physical employees, easier to collect
data, costs (website development), high competition, lacks personal connection (less
customer service), how markets change (consumer tastes/preferences/demographics (ageing
population/affluence)/level of competition/legislation (environmental standards)), innovation
(product (improvement of existing products), process (improvement of existing production
processes)), market growth (measurement of change in entire market, % of original size,
increasing population/incomes/tastes), adapting to change (market research to meet changing
needs, invest in new products/processes/staff training, innovate (first mover advantage)
Competitior- rival business operating in same market offering similar goods/services/subsitute
Competition- rivalry among sellers trying to increase profits/market share when at least 2
businesses providing goods/services to same market, keeps businesses from becoming
complacent, controls price/quality/customer service, encourages innovation/improvement,
direct competition (sale of similar product), indirect competition (different products but
competing for customers disposable income, airlines competing with trains)
Risk- potential threat to business success, can be quantified/calculated/prepared for, risk
management (process of identifying/assessing/preparing for potential threats), internal
(technical failures, loss of key staff), external (currency fluctuations)
Uncertainty- inability to predict future evenets/outcomes, unexpected (recessions, energy
prices, interest rates)
Market orientation- approach to marketing with focus on needs of consumer, consumers
centre of marketing decisions, high demand/profits/valued brand image, requires market
research
Product orientation- approach to marketing with focus on what firm does best/characteristics
of the product, create product then find market, believes product will sell itself, as consumer
preferences change product may fall out of favour, marketing (large sales force to convince
consumers to buy, sales incentives, if they can’t sell costs/prices will be cut)
Market research- process of systematically gathering/analysing data from consumers to
influence business decisions, can reduce risk of launching new products/entering new
markets, identify potential demands/how much they can charge/assess competitors
Primary research- gathering information directly from consumers in target market,
surveys/interviews/ observations/focus groups/test marketing (trialling product in small
quantities), aimed specifically at own research objectives, up to date, can reach wide range,
not available to competition, expensive/time consuming (hire specialist research agency), can
be biased (researchers guide answers/influenced by others in focus group)
Secondary research- using data that already exists, internet, purchase market reports,
government publications, wide range of information, readily available so quicker, often free or
cheaper, SMOs less able to carry out own research, may have to pay if from specialist data
company, available to competition, may be outdated, not tailored to own specific needs so
may lack relevance
Qualitative research- data based on thoughts/opinions, in-depth, find
motivation/attitudes/buying habits, focus groups (reveal problems/ opportunities for company,
reveal what’s important to consumers (function/aesthetics/price), individual interviews
(remove risk of opinions being swayed by one individual)
Quantitative research- numerical data, larger sample, needs representative sample,
questionnaires need to be unbiased
