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