Product orientation: business is focused on the production process and the product itself.

They believe that

a high quality product will satisfy customers and therefore will sell well.

Market orientation: business is focused on continually identifying, reviewing and analysing customers’
needs. They believe that once they identify the needs of the customers, they will be able to accordingly
produce a product that will satisfy their needs.

Commercial marketing: using marketing strategies to meet the wants and needs of customers in a
profitable way (seek influence purchasing decisions).

Social marketing: the implementation of marketing methods to bring about positive social change (seek to
influence behaviour for the good of society).

Social media marketing: the use of social media platforms to promote a product or service.

Market share: an organisation’s portion of the total value of sales within a market.

Market leadership: the company holding the highest amount of market share in the industry.

Marketing planning: the process of deciding marketing strategies

- marketing objectives
- key strategic plans
- marketing actions
- marketing budgets

Market segment: a distinct group of customers with similar characteristics and similar wants or needs.

Target market: the market segment that a company aims to sell its product to.

Niche market: targets a specific and well-defined market segment.

Mass market: different market segments are targeted to maximise sales volume.

Market segmentation:

- Demographic: dividing by personal characteristics (e.g. age, gender, religion, family)

- Geographic: dividing by location
- Psychographic: dividing by lifestyle and behaviour (e.g. income, tastes and preferences, hobbies)

Sales forecasting: the process of predicting a firm’s future sales based on past data. It is used to improve
budgeting and productive efficiency, although it can be inaccurate if you don’t have much data available.

Three-year moving average: (Y1+Y2+Y3) / 3

Four-year moving average: [(Y1+Y2+Y3+Y4) + (Y2+Y3+Y4+Y5)] / 8
Yearly variation: Sales Y2 – Trend Y2
Cyclical variation: variations average
Extrapolation: calculate future and past values using “line of best fit”
Market research: : the process of collecting, analysing and reporting data related to a particular market,
with the purpose of identifying the needs and wants of the customers, to predict future sales, to reduce the
risk of failure and to investigate competitors.

Primary market research: the research you carry out yourself.

- survey
- interview
- focus group
- observation

Secondary market research: a research which has already been carried out and published by others.

- academic journal
- media article
- government publication
- market analysis

Sampling method: the portion or subgroup of the population selected for market research purposes.

- Quota - by characteristics (age, gender…)

- Random
- Stratified - percentage of males and females
- Cluster - by geographical areas
- Snowball - the interviewer asks the interviewee to recommend other people they should speak to
- Convenience - people within easy reach

Qualitative data: non-numerical answers

Quantitative data: data & numbers

PRODUCT

Product life cycle (PLC): a model that shows the different stages in the life of a product and the sales that
can be expected at each phase.

Development
Introduction
Growth
Maturity
Saturation
Decline
Extension strategies: an attempt by firms to stop sales from falling.

- new market for existing products

- wider product range
- change packaging/design
- target different market segments

Boston matrix: product portfolio analysis

Cash cow: sales won’t last long since market is expected to shrink, you must “milk” it as much as you can.

Question marks: market is growing rapidly. If the company is able to maintain its share, sales will grow
along with the market. So the future is uncertain, but there is potential.

Stars (best option): the company needs to maintain the share.

Dogs (worst option): low potential.

BCG Matrix strategies:

- Holding strategy – stars

- Building strategy – question marks
- Harvesting strategy – cash cow
- Divesting strategy – dogs

Branding: the process of distinguishing one business’s product from competitors, adding value to it.

Brand awareness: customers recognize your product.

Brand development: specific focus on increasing brand awareness.
Brand loyalty: customers are loyal to the brand.
Brand value: the difference between the value of a branded product and the value of a non-branded one.

Packaging: it refers to the designing and production of the physical container or wrapper of a product.
PRICE

Pricing strategies:

Cost-plus Calculate the cost of making the product and add a % “mark-up”
pricing

Penetration Charge a low initial price to gain market share quickly - can raise the price
pricing later when established in the market

introduction
phase
Price Skimming Charge a high initial price to gain maximum profit from customers prepared to
pay high prices and lower prices later
only for one-off
sales
Psychological Pricing linked to customers’ perception e.g. perceived value (high price = high
pricing quality?) or $9.95 rather than $10

Loss leader Sell one product at a very low price (even at a loss) to get customers “through
the door” to spend regular prices on other products

Price Charge different prices to different groups of customers who have different
discrimination degrees of willingness/ability to pay and who cannot re-sell to another group
(e.g. different age groups). It can only be used if consumers can be
categorised

Competitive Setting a price relative to the competitors’ prices - usually similar/just below,
pricing but could also be deliberately lower to steal market share to put competitors
out of business (predatory/destroyer pricing)

PROMOTION

= communicating information about a firm’s products to consumers.

Above-the-line promotion: a paid for communication to promote a firm’s products (e.g. television, radio,
billboards, influencers…)

Below-the-line promotion: a form of communication where the firm has direct control over its promotional
activities.

- Direct marketing: advertising through emails, phone calls…

- Personal selling: face to face selling
- Public relations: reviews, newspaper articles…
- Sales promotion: make customers act quickly

Guerrilla marketing: cheap, untraditional promotional strategy that has immediate effect on sales.

Marketing: the action of promoting and selling products or services to the right customers.
PLACE

= how the product reaches consumers.

Zero intermediary channel: a product is sold directly from the producer to the consumer.

One intermediary channel: it involves an intermediary (retailer, agent…) to sell the product from the
producer to the consumer.

Two intermediary channel: it involves two intermediaries (wholesalers + retailer) to sell the product from
the producer to the consumer.

E-commerce: the buying and selling of products using electronic systems.

Extended marketing mix (7 Ps) – people, process, physical evidence

International marketing