Marketing

is the process of identifying, anticipating and satisfying the needs of customers in a mutually beneficial exchange process.

A marketing objective

is a marketing target for the business, setting out what it wants to achieve and when.

A corporate objective

is a target set for the business as a whole.

A marketing strategy

is a marketing plan to achieve the marketing objective.

Business-to-consumer marketing (B2C)

occurs when one business is marketing its products to the final consumers.

Business-to-business marketing (B2B)

occurs when one business is marketing its products to other businesses.

The market size

is the total number of items sold (this is measuring volume) or the total value of sales.

Market growth

measures the rate at which the market as a whole is growing over a given time period.

A unique selling point (USP)

is something about your product which is perceived by your customers as unique.

Niche marketing

occurs when a business focuses on a particular (usually small) segment of the market.

A market segment

exists when there is a group of clearly identifiable customer needs and wants.

Mass marketing

occurs when a business targets the majority of the market.

Customer-relationship marketing (CRM)

involves gathering and analysing data about customers to understand their behaviours and take appropriate actions to move them towards a purchase.

Customer retention

measures the proportion of customers who continue to buy from the business over a period of time.

Market research

is the process of gathering, analysing and producing data relevant to the marketing process.

Primary market research

gathers data for the first time for a specific purpose.

A focus group

is a small number of people gathered together to talk about a particular issue in open discussion.

Secondary market research

uses data that already exists.

A sample

is a group of people selected to represent the population as a whole.

The validity of market research

refers to how accurate the findings of market research are.

The reliability of market research

refers to the extent to which the same results would be received if the research was conducted again.

The marketing mix

is the combination of elements that influence a customer’s decision on whether or not to buy a product.

The products

of a business refer to what it offers to sell to its customers. These may be goods, which are tangible items, or services, which are intangible.

The tangible attributes

of a product refer to its physical aspects, such as how it looks and feels.

The intangible aspects

of a product refer to aspects that cannot be touched but can still be important to customers, such as the brand and its key values.

Product differentiation

occurs when the benefits of your product are perceived as clearly different from competitors’ products.

Product portfolio analysis

occurs when a business examines the position of all of its products in terms of their relative market share and market growth.

The product life cycle

shows the stages of a product over its lifetime.

An extension strategy

occurs when marketing activities are changed to prevent sales from falling.

Product portfolio analysis (PPA)

examines the market position of a firm’s products.

The Boston Matrix

is a method of product portfolio analysis that examines the products of a business in terms of their market share and the market growth.

Competitive pricing

is when companies set their prices at the same level as, or slightly below, their rivals.

Penetration pricing

is a pricing strategy aimed at gaining market share via a low entry price.

Price skimming

occurs when a high initial price is set for a product and this is reduced over time.

Price discrimination

occurs when different prices are charged for the same product.

Dynamic pricing

occurs when different prices are changed at different times to reflect demand conditions.

Cost-based pricing

occurs when a business considers the costs of an item and adds on an amount or a percentage to ensure it makes a profit.

Psychological pricing

takes account of the psychological effect of a price on customers.

The promotional mix

refers to the combination of ways in which the business communicates about its products.

Digital promotion

involves promoting a brand, product or service on digital channels such as search engines, social media, email and mobile apps.

The click-through rate (CTR)

measures the number of visits to a website as a percentage of the number of impressions of a digital advert.

The marketing expenditure budget

is the amount of money a business allocates to spend on marketing activities such as promotion.

The distribution channel

describes how the ownership of a product moves from the producer to the customer.

The distribution outlet

is where the product is actually sold; for example, the shop.