Chapter 1 Marketing
Marketing - Management process of identifying, anticipating trends, satisfying customer needs
to gain profit
Mass market - Market where goods are produced on a large scale for a significant number of
end consumers
Niche market - A small subset of a mass market, end consumers with specific wants and needs
Market share - Percentage of a market that belongs to a business
Market cap - Money a business gets through selling shares
Dynamic market - Market that is always changing
Factors to change in a market
- Technology
- Innovation
- Entrants
- Globalisation
- Tastes and preferences
E-commerce - Transactions done electronically
E-railing - the purchase of goods and services online
Product innovation - launching new products to the market
Process innovation - finding faster and better ways to produce
First movers advantage - gains a competitive advantage for being the first to introduce a new
good or service
Market change - a change in consumer preferences, opens new markets and opportunities
,Chapter 2 Market research
Product orientation - A business does what it is good at, focused on creating high quality goods
and services
Market orientation - Responds to the needs and wants of the consumer
Primary research - research is conducted by the firm
Secondary research - research is done by compiling research done by others
Market segmentation - how a market is split up
- Lifestyle
- Age
- Gender
- Religion
- Location
- Use of product
Chapter 3 market positioning
Market positioning - The views of the quality, value for money and image a consumer has
relative to the competition
Market mapping - A 2D tool used by businesses to see where they are relative to the market
- Allows a business to spot gaps in the market
- Analysing the competition (ways to improve, ways to maintain competitive advantage)
Product differentiation - What sets the product apart from the competition
Added value - An additional feature offered by the business that exceeds the expectations of
consumers
,Chapter 4 Demand
Demand - The quantity of a good or service that the consumers are willing and able to purchase
at a given price (inverse relationship)
Demand curve - inward (decrease) outward (Increase)
Factors that affect demand
- Substitution effect
- Direct (can easily be replaced, coke and pepsi)
- Indirect (not exactly the same, flights and trains)
- Seasons
- External shocks
- Advertising and branding
- Stronger branding less price elastic, loyal customers
Chapter 5 Supply
Supply - The quantity of goods or services a supplier is willing and able to supply at a given
price (parallel relationship)
Supply curve - inward (decrease) outward (Increase)
Factors that affect supply
- Government subsidies (makes it cheaper for firms produce)
- Indirect tax (targets the consumer, decreases demand and doesnt benefit the firm)
- Technology (cheaper production and faster)
Chapter 6 Market equilibrium
- Market equilibrium - a price where consumers are willing to purchase and suppliers are
willing to supply
, Chapter 7 Price elasticity of demand
Price elasticity of demand - the responsiveness of demand to a change in price
% change in QD / % change in price
PED < 1 inelastic PED > 1 elastic
Chapter 8 Income elasticity of demand
Income elasticity of demand - the responsiveness of demand to a change in income
% change in QD / % change in income
YED <1 Inelastic, YED >1 Elastic
Chapter 9 Product
Design mix (function, cost and aesthetics)
Function - Fit for purpose, do what it is supposed to do
Costs - Well designed, to keep the cost the lowest
Aesthetics - physical appearance of the product
Firms may specialise in 1
Chapter 10 Promotion
Brand - a unique name, design, symbol or logo that distinguishes the firm from others
Above the line (mass media)
Below the line (does not include the mass media)
Through the line (both at the same time)
Sales promotion - Encouraging people to buy the product by lowering prices
Personal selling - Having 1 to 1 conversations to sell
Public relation - Managing how information of an individual or company is viewed by the public
Marketing - Management process of identifying, anticipating trends, satisfying customer needs
to gain profit
Mass market - Market where goods are produced on a large scale for a significant number of
end consumers
Niche market - A small subset of a mass market, end consumers with specific wants and needs
Market share - Percentage of a market that belongs to a business
Market cap - Money a business gets through selling shares
Dynamic market - Market that is always changing
Factors to change in a market
- Technology
- Innovation
- Entrants
- Globalisation
- Tastes and preferences
E-commerce - Transactions done electronically
E-railing - the purchase of goods and services online
Product innovation - launching new products to the market
Process innovation - finding faster and better ways to produce
First movers advantage - gains a competitive advantage for being the first to introduce a new
good or service
Market change - a change in consumer preferences, opens new markets and opportunities
,Chapter 2 Market research
Product orientation - A business does what it is good at, focused on creating high quality goods
and services
Market orientation - Responds to the needs and wants of the consumer
Primary research - research is conducted by the firm
Secondary research - research is done by compiling research done by others
Market segmentation - how a market is split up
- Lifestyle
- Age
- Gender
- Religion
- Location
- Use of product
Chapter 3 market positioning
Market positioning - The views of the quality, value for money and image a consumer has
relative to the competition
Market mapping - A 2D tool used by businesses to see where they are relative to the market
- Allows a business to spot gaps in the market
- Analysing the competition (ways to improve, ways to maintain competitive advantage)
Product differentiation - What sets the product apart from the competition
Added value - An additional feature offered by the business that exceeds the expectations of
consumers
,Chapter 4 Demand
Demand - The quantity of a good or service that the consumers are willing and able to purchase
at a given price (inverse relationship)
Demand curve - inward (decrease) outward (Increase)
Factors that affect demand
- Substitution effect
- Direct (can easily be replaced, coke and pepsi)
- Indirect (not exactly the same, flights and trains)
- Seasons
- External shocks
- Advertising and branding
- Stronger branding less price elastic, loyal customers
Chapter 5 Supply
Supply - The quantity of goods or services a supplier is willing and able to supply at a given
price (parallel relationship)
Supply curve - inward (decrease) outward (Increase)
Factors that affect supply
- Government subsidies (makes it cheaper for firms produce)
- Indirect tax (targets the consumer, decreases demand and doesnt benefit the firm)
- Technology (cheaper production and faster)
Chapter 6 Market equilibrium
- Market equilibrium - a price where consumers are willing to purchase and suppliers are
willing to supply
, Chapter 7 Price elasticity of demand
Price elasticity of demand - the responsiveness of demand to a change in price
% change in QD / % change in price
PED < 1 inelastic PED > 1 elastic
Chapter 8 Income elasticity of demand
Income elasticity of demand - the responsiveness of demand to a change in income
% change in QD / % change in income
YED <1 Inelastic, YED >1 Elastic
Chapter 9 Product
Design mix (function, cost and aesthetics)
Function - Fit for purpose, do what it is supposed to do
Costs - Well designed, to keep the cost the lowest
Aesthetics - physical appearance of the product
Firms may specialise in 1
Chapter 10 Promotion
Brand - a unique name, design, symbol or logo that distinguishes the firm from others
Above the line (mass media)
Below the line (does not include the mass media)
Through the line (both at the same time)
Sales promotion - Encouraging people to buy the product by lowering prices
Personal selling - Having 1 to 1 conversations to sell
Public relation - Managing how information of an individual or company is viewed by the public
