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Cambridge AS Business (9609) Flashcards - Unit 3: Marketing

front 1

4c's

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A customer-focused marketing model: Consumer needs and wants, Cost, Convenience, and Communication.

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Advertising promotion

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The use of paid media to inform, persuade, or remind consumers about a product or service.

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Brand image

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The perception consumers have of a brand, shaped by their experiences and interactions.

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Brand

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A name, symbol, or design that identifies and differentiates a product from competitors.

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Building customer relationships

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Developing long-term interactions with customers to encourage loyalty and repeat business.

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Competitive pricing

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Setting a product's price based on the prices of similar products offered by competitors.

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Cost plus pricing

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A pricing method that adds a fixed mark-up to the cost of producing or buying the product.

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Customer loyalty

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The tendency of customers to continue buying the same brand or product over time.

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Demand

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The desire and ability of consumers to purchase a good or service at a given price.

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Distribution channels

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The route a product takes from the producer to the final consumer.

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Dynamic pricing

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A pricing strategy where prices are adjusted in real time based on market demand and conditions.

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E-commerce

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Buying and selling of goods and services through the internet or other digital platforms.

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Extension strategies

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Methods used to prolong the life cycle of a product, especially during the maturity stage.

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Focus groups

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A small group of people brought together to give feedback on a product or idea.

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Licensing

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A legal agreement allowing one company to produce and sell a product owned by another.

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Market Growth

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The change in the size of a market, measured by sales value or volume, over time.

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Market orientated

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A business approach where products are developed based on customer needs and preferences identified through market research.

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Market research

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The process of gathering, analyzing, and interpreting information about a market.

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Market segmentation

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Dividing a market into distinct groups of consumers with similar needs or characteristics.

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Market Share

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A company’s sales revenue as a percentage of total sales in the market.

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Market

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All actual and potential customers for a product who have the willingness and ability to buy.

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Marketing Mix

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The four key elements (Product, Price, Place, Promotion) used to successfully market a product or service.

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Marketing Objectives

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Specific, time-bound goals set by a business to guide its marketing efforts and evaluate success.

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Marketing Strategy

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A long-term plan to achieve marketing objectives using available resources.

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Mass marketing

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A strategy that targets a wide audience with a single product or service.

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Niche marketing

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Targeting a small, specific segment of the market with tailored products.

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Packaging

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Materials used to protect and present a product, while also helping to promote and identify it.

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Penetration pricing

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Setting a low initial price to gain market share and attract new customers.

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Price elasticity

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A measure of how much demand for a product changes in response to a change in price.

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Price skimming

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Setting a high price for a new product to maximize profit before competitors enter the market.

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Primary research

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The collection of new, firsthand data tailored to meet a business’s specific research needs.

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Product Differentiation

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Making a product stand out from competitors by emphasizing its unique features or benefits.

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Product life cycle

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The stages a product goes through from introduction to decline in the market.

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Product oriented

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A business approach focused on developing products first, then finding the market for them.

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Promotional pricing

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Temporarily reducing prices to boost sales or attract customers.

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Random Sampling

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A sampling method where each member of the population has an equal chance of being selected.

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Sales Promotion

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Short-term incentives used to boost sales or encourage repeat purchases.

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Sampling

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The process of selecting a representative group from a target market to conduct research.

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Secondary research

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Collecting and using data that has already been published by others.

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Social media marketing

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Using social networking platforms to promote a business’s products or services.

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Supply

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The total amount of a specific good or service available to consumers at a given time and price.

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Surveys

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A method of gathering data by asking current or potential consumers for their views and preferences about a product.

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Unique Selling Point (USP)

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A feature or benefit that makes a product stand out from competitors, such as lowest cost, best quality, or uniqueness.

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Viral marketing

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A marketing technique that encourages consumers to share and spread promotional messages online, especially via social media.

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B2B

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A form of commerce where businesses sell products or services to other businesses (e.g., manufacturer to wholesaler).

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BSC

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Business-to-consumer (B2C) refers to selling products or services directly from a business to individual consumers.

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Customer Relationship Marketing

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Marketing strategies focused on building long-term relationships with customers to encourage loyalty and repeat business.

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Tangible attributes

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The physical features of a product that can be objectively measured and compared (e.g., size, weight, material).

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Intangible attributes of product

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The non-physical qualities of a product, such as brand image, reputation, and emotional appeal, which are harder to measure.

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Boston MatrixAnalysis

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A strategic tool used to categorize a firm’s products or brands based on their market growth and market share.

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Product PortfolioAnalysis

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A review of a company’s product range to assess performance and determine where to allocate resources.

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Psychological Pricing

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A pricing strategy where prices are set to appear more attractive to consumers (e.g., $9.99 instead of $10.00).

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Direct Promotion

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A type of promotion that involves direct communication with targeted consumers via email, messaging, or mail campaigns.

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Digital Promotion

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Marketing using digital platforms such as websites, social media, mobile apps, or search engines to promote products or services.

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Above-the-line promotion

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A form of promotion using mass media channels such as TV, radio, or newspapers to reach a wide audience.

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Below-the-line promotion

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Promotion that uses non-media methods such as direct mail, personal selling, sales promotions, or sponsorships to target customers.

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Marketing plan

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A detailed document outlining an organization’s marketing objectives, strategies, budget, and actions for a specific period.

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Branding

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The process of creating a distinct identity for a product through name, logo, design, and messaging to differentiate it from competitors.

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Consumer profile

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A description of the typical customer based on demographics, buying habits, and lifestyle characteristics.

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Geographic segmentation

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Segmenting a market based on geographical location such as region, city, or climate.

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Demographic segmentation

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Dividing a market into segments based on variables such as age, gender, income, education, or occupation.

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Psychographic segmentation

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Segmenting the market based on lifestyle, personality, values, and interests of consumers.

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Product positioning

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How a product is perceived in the minds of consumers relative to competing products.

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Perception map

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A visual representation that shows how consumers view different products based on key attributes such as price and quality.

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Price discrimination

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Charging different prices to different groups of consumers for the same product, based on willingness or ability to pay.

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Loss leader pricing

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Setting a very low price on a product to attract customers and encourage them to buy other higher-margin items.

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Predatory pricing

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Deliberately setting very low prices to drive competitors out of the market, often considered illegal or anti-competitive.

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Price leadership

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A pricing strategy where one dominant firm sets the price, and other firms in the market follow.

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Product innovation

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The development and introduction of new or significantly improved products to meet changing customer needs.

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Test marketing

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Launching a new product in a limited area to assess customer response before a full-scale launch.

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Public relations (PR)

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Efforts to build and maintain a positive image of the company through media coverage, sponsorships, or events.

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Integrated marketing communications (IMC)

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A strategy that coordinates all promotional tools and messages to provide a consistent brand message across all channels.

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Marketing audit

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A comprehensive review and evaluation of a company’s marketing activities, strategies, and performance.

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Unique value proposition (UVP)

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A clear statement that explains how a product or service uniquely solves a customer’s problem or satisfies a need better than competitors.