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ESSENTIAL KEY WORDS AND DEFINITIONS ANSOFF MATRIX – measures the degree of risk associated with certain strategies. The closer the business stays to its existing products and markets, the lower the risk. Introducing new products into diversified markets carries the most risk. Ansoff showed this in matrix form. BRANDING – establishing an identify for your product that distinguishes it from the competition. Successful branding adds value to an item and can ensure brand loyalty. BOSTON MATRIX – a method of analyzing the current position of their products within a firms portfolio, in terms of their market share and growth within their market place. Devised in America by the Boston Consulting Group. CASH COW – a brand that has a high share of a declining market. Firms use their cash cows to generate the cash to invest in newer products with greater growth products. The cash generation (or milking) is achieved by pushing prices up as high as possible while minimizing expenditures. CUSTOMER LOYALTY – The decisions and actions taken by consumers during the year, which can be measured by recording delivery times and sales patterns (such as Christmas Peaks). CUSTOMER SERVICE – this covers all the activities that affect the customer experience of dealing with an organization. This will include the impressions created by the manner appearance and training of staff, plus the reality of how well the customer needs or wants can be satisfied. DESK RESEARCH – research involving published resources that already exist. DISTRIBUTION CHANNELS – the stages of ownership that take place as a product moves from the manufacturer to the consumer FOCUS GROUPS – an American term for group discussions, ie small scale, in depth research into the reasons behind consumers attitudes.

market research and general marketing functions. This can be measured by volume. or by value. MARKET NICHE – a gap in the range of products or services offered within a market.MARKETING – ‘Getting the right product at the right place at the right time’ MARKETING MIX – Successful marketing results from concentrating on what is known as the four P’s. The word strategy suggests a carefully thought out. forecast results and contingency plans. trendy. costing. MARKETING PLAN – a report detailing a firm marketing objectives and strategy. integrated plan. New. how best to fill it. Looking at trends in market share is important for a firm as it shows position in relation to the market as a whole. MARKET SIZE – the total sales of all the producers within a market place. Things to consider: 1. develop and market new opportunities. old or established? 2. MARKETING POSITIONING – where a manufacturer positions a brand within a market plan in terms of image. MARKET RESEARCH – involves the collecting of information about what is happening in the mind of the consumer and in the market segments to which the consumer belongs MARKET SHARE – the percentage of all sales within a market that are held by one brand or company. pricing and distribution. . These are: Price Product Promotion Place MARKETING OBJECTIVES – are the goals the marketing department must achieve in order to help the company achieve its overall objectives. It should set out the balance of marketing activity between new and existing costs with carefully costed budgets. NEW PRODUCT DEVELOPMENT – implies all the functions required to identify. Upmarket or Downmarket? MARKETING STRATEGY – a medium to long plan for meeting marketing objectives. Having identified that such a gap exists. including. This requires close co – operation between research and development. measured either by volume (units sold) or by value (the revenue generated). a business must decide whether the niche is large enough is large enough to be profitable and if so. Specialists or for the general public 3.

Social. Ideally this portfolio should range over a different markets and different stages in the product life cycle. A highly differentiated product is one which think of as so distinctive that it has no successful substitutes PRODUCT LIFE CYCLE – a theory that all products follow a similar life course of conception. growth. PRODUCT DIFFENTIATION – is the extent to which consumers perceive one product as being different from its rivals. Economic. This is carried out by fieldwork. This will require research into what the competition are charging and what the customer is prepared to pay PRICE SKIMMING – means pricing a new product at such a high level that it is only purchased by trend setters. This can enable small firms to operate profitably in markets dominated by large corporations PANEL DISCUSSIONS – a form of qualitative research in which the same 6-8 consumers meet regularly for a group discussion led by a psychologist. customers or markets. Technological Factors PLACE – ensuring that the product can be bought and is available through the appropriate distribution channels.NICHE MARKETING . This anti competitive practice is hard to prove. maturity and decline PRODUCT PORTFOLIO – the range of products or brands held by a company that provide it with as source of income. Secondary research is carried out by gathering desk research. PREDATORY PRICING – setting a price low enough to drive competitors out of the market or out of business. PRIMARY MARKET RESEARCH – is the gathering of first hand data that is tailor made to the firms own products. . PRICE – Fixing a price at which the customer will buy the product. The respondents are selected on a very tightly defined area. birth. PENETRATION PRICING – setting a price low enough to gain sufficient market share to achieve customer brand recognition within that market PEST ANALYSIS – Political. enthusiasts or the very rich. The firm may choose to hold this price long term or cut prices when the competition arises.a corporate strategy based on identifying and filling relatively small market segments. Often used by large organizations. PRODUCT – a term used by manufacturing and service businesses to indicate the goods or services they provide.

quota. Weaknesses. (External) Opportunities. The choice of target market will then affect every section of the marketing mix: including: . QUESTIONAIRE – a document containing a series of questions designed to discover the information required required to meet a firms research objectives. stratified and cluster. the quota sample is the one most commonly used. Threats TARGET MARKET – the precise profile of the customers a firm wishes to sell to. SECONDARY RESEARCH – is information collected from second hand sources such as reference books. government statistics or market intelligence reports. In consumer research. Age 2. Such data can provide data SAMPLE – a group of respondents to a market research exercise selected to be representative of the views of the target market as a whole. Geographical Area 5. Gender 3. Lifestyle (fashion and taste) SWOT – (Internal) Strengths.PROMOTION – communicating a product to the customer in a variety of ways. There are four main methods of sampling: Random. SEGMENTATION – is the process of breaking down markets into segments. This can be achieved by: 1. government books. Wealth and Income 4.