key business functions: marketing

price

Business owners normally choose three methods for calculating price: - cost-based - market-based - competition-based

promotion

Refers to the methods used by a business to inform, persuade and remind customers above its products. E.g. advertising, personal, selling, sales promotion and publicity

target market

a group of customers with similar characteristics who presently, or whom may in the future purchase the product

market-based

a method of setting prices according to the interaction between the levels of supply and demand- whatever the market is prepared to pay

cost-based

a pricing method derived from calculating the total cost of producing or purchasing a product and then adding a mark-up for profit

marketing

a total system of interacting activities designed to plan, price, promote and distribute products to present and potential customers

marketing strategies

actions undertaken to achieve the business's marketing goals

place

are activities that make the products available to customers when and where they want to purchase them.

distribution channels

are ways of getting the product to the customer. E.g. mail order, telemarketing, transport, door-to-door and agent

competition based

choosing a price that is either below, equal or above that of the competitors

marketing mix

combination of the four elements of marketing; product, price, promotion and place- make up the marketing strategy

product

it is the element of marketing mix that involves much more than just deciding which goods/services to the market. The business owner needs to determine the products: - Quality - Design - Name Warranty and guarantee

niche market

narrowly selected target market segment

mass market

the seller mass-produces, mass-distributes and mass-promotes one product to all byers.

market segmentation

total market is subdivided into groups of people who share one ore more common characteristics