MARKETING

Business Studies

MODULE 7. MARKETING

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CONTENTS
7.1 The nature of marketing (unit 11)
7.2 Market research (unit 12)
7.3 Market segmentation (unit 14)
7.4 Market size, market share and market growth (unit 15)
7.5 The marketing mix (unit 16)
7.6 The product life cycle (unit 17)
7.7 New product development and product portfolio analysis (unit 18)
7.8 Price – influencing the market (unit 19)
7.9 Promotion (unit 21)
7.10 Place (unit 22)
7.11 Branding (unit 23)
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7.1 The nature of marketing (unit 11)

Market
Set of arrangements that allows buyers and sellers to exchange goods and
services.
Mercado
Marketing
Management process involved in identifying, anticipating and satisfying customer
needs profitably.
Mercadotecnia
Relationship marketing
Marketing approach that stresses the importance of developing relationships with
customers that last much longer than just a single transaction.
Marketing de relaciones / Marketing relacional
Consumer marketing
When a business is marketing to consumers.
Marketing de consumo
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7.1 The nature of marketing (unit 11)

Business to business (B2B) marketing

When a business is marketing its products

to another business.
Marketing industrial

Product orientated versus market orientated business

A business is product orientated when it focuses on the production process and the
product itself.
Empresa orientada al producto
A business is market orientated when it continually identifies, reviews and analyses
customers’ needs.
Empresa orientada al mercado
Marketing mix (4 Ps)

Management process aimed at offering the right product, at the right price, in the
right place and letting the consumers know that it is available.
Mix de mercado (4 Ps) 4
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7.1 The nature of marketing (unit 11)

Asset-led marketing (a.k.a. asset-based marketing)

When a business combines its knowledge of the market with an understanding of

its strengths to decide which products to bring to the market.
Marketing basado en activos

Mass marketing versus niche marketing

Mass marketing occurs when a business offers almost the same products to all
customers and promotes them in almost the same way.
Marketing de masas
Niche marketing means that the business aims or targets a product at a
particular, often small, segment of the market (called a niche).
Marketing de nichos
Global marketing
When a product is marketed all over the world.
Marketing internacional
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7.1 The nature of marketing (unit 11)
Economies of scale
The reduction in unit costs when a product is manufactured in large quantities.
Economías de escala
Perceptual map (a.k.a. market map or positioning map)

Graphical plotting (usually

bidimensional) showing the
positioning of several brands in terms
of their main attributes or
characteristics. This brand mapping
allows a business identifying any
gaps in the market that are unfilled.
Mapa de posicionamiento de
productos

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CONTENTS
7.1 The nature of marketing (unit 11)
7.2 Market research (unit 12)
7.3 Market segmentation (unit 14)
7.4 Market size, market share and market growth (unit 15)
7.5 The marketing mix (unit 16)
7.6 The product life cycle (unit 17)
7.7 New product development and product portfolio analysis (unit 18)
7.8 Price – influencing the market (unit 19)
7.9 Promotion (unit 21)
7.10 Place (unit 22)
7.11 Branding (unit 23)
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7.2 Market research (unit 12)

Market research (a.k.a. marketing research)
Collecting and analysing data related to the marketing and consumption of goods
and services.
Investigación de mercado

Primary marketing research (a.k.a. field research)

Involves collecting primary (i.e. original or otherwise unavailable) data, using

methods such as face-to-face interviewing, telephone and postal surveys, and
direct observation.
Investigación de campo

Secondary marketing research (a.k.a. desk research)

Gathering and analyzing information, already available in print or published on the

internet.
Investigación de despacho

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7.2 Market research (unit 12)

Retail audits
Studies of a selected sample of retail outlets, provided as a subscription-based service
by market research firms, that includes information on sales volume, sales trends, etc.
Informes de ventas

Electronic Point Of Sale (EPOS)

Self-contained, computerized piece of equipment that performs all tasks of a store
checkout counter.
Terminal punto de venta (TPV)
Survey
Study in which respondents provide information to researchers about their actions,
habits, attitudes and perceptions.
Encuesta
Questionnaire

List of questions asked to respondents, and designed to extract specific information.

Cuestionario 9
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7.2 Market research (unit 12)

Closed versus open questions

A closed question provides a set of answers from which the respondent must
choose (e.g. a multiple choice question).
An open question is a question in which possible answers are not suggested, and
the respondent answers it in their own words.
Preguntas cerradas versus abiertas

Interviewer bias
Risk of a preconceived response based on the structure, phrasing, or tenor of
questions asked in the interviewing process.
Sesgo del entrevistador

Focus group

Group formed by a small number of representative customers brought together

with a moderator to focus on a specific product or topic.
Grupo de discusión
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7.2 Market research (unit 12)

Consumer panel

Group of consumers being followed/monitored on their consumption of a product

over a period of time.
Panel de consumidores

Test marketing

Selling a product in a restricted test market in order to assess consumer reaction.

Prueba de mercado

Qualitative versus quantitative research

Qualitative research involves data about attitudes, beliefs and intentions.

Quantitative research involves data that can be quantified.
Investigación cualitativa versus cuantitativa

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CONTENTS
7.1 The nature of marketing (unit 11)
7.2 Market research (unit 12)
7.3 Market segmentation (unit 14)
7.4 Market size, market share and market growth (unit 15)
7.5 The marketing mix (unit 16)
7.6 The product life cycle (unit 17)
7.7 New product development and product portfolio analysis (unit 18)
7.8 Price – influencing the market (unit 19)
7.9 Promotion (unit 21)
7.10 Place (unit 22)
7.11 Branding (unit 23)
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7.3 Market segmentation (unit 14)

Market segmentation

Breaking down a market into sub-groups which share similar characteristics.

Segmentación de mercado

Geographic segmentation

Market segmentation based on the location (country/region/city) of the customers,

the area (rural, urban, etc) and also the type of house or neighborhood.
Segmentación geográfica

Demographic segmentation
Market segmentation that splits people up into different groups according to
different personal characteristics such as age, gender, income, ethnic group, etc.
Segmentación demográfica

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7.3 Market segmentation (unit 14)

Psycographic segmentation

Market segmentation that groups customers according to their attitudes, opinions

and lifestyles.
Segmentación psicográfica
Behavioural segmentation
Market segmentation that groups consumers based on the behavioural patterns
they display when making purchasing decisions (e.g. usage rate, time and date of
consumption, brand loyalty, etc).
Segmentación por comportamiento
Undifferentiated versus differentiated marketing strategy
A business uses an undifferentiated marketing strategy when it makes little use of
market segmentation and promote its product to the entire market.
A differentiated marketing strategy would aim at targeting different market
segments with different marketing strategies.
Estrategia de marketing diferenciada versus no diferenciada
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7.3 Market segmentation (unit 14)

Concentrated marketing

Marketing strategy in which resources of a firm are focused on a well-defined niche

market or population segment.
Marketing concentrado
Customer profile (a.k.a. consumer profile)
An analysis of the characteristics of customers (or consumers) in a market or
market segment (e.g. age, income, shopping habits, etc).
Perfil de cliente/consumidor

Target market
A particular market segment on which a marketing campaign is focused.
Mercado objetivo

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7.3 Market segmentation (unit 14)

Market positioning
An effort to influence consumer perception of a brand or product relative to the
perception of competing brands or products in order to occupy a clear, unique, and
advantageous position in the consumer's mind.
Posicionamiento de mercado

Marketing mix (4 Ps)

Set of decisions relative to the controllable elements of a product's marketing plan.
It is commonly termed the 4 Ps: Product, Price, Place, and Promotion.
Mix de mercado (4 Ps)

Pester power

The constant requesting by one group of another to buy products. It often applies
to children pushing parents to make specific purchases.
Poder de influencia en la decisión de compra

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7.3 Market segmentation (unit 14)

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CONTENTS
7.1 The nature of marketing (unit 11)
7.2 Market research (unit 12)
7.3 Market segmentation (unit 14)
7.4 Market size, market share and market growth (unit 15)
7.5 The marketing mix (unit 16)
7.6 The product life cycle (unit 17)
7.7 New product development and product portfolio analysis (unit 18)
7.8 Price – influencing the market (unit 19)
7.9 Promotion (unit 21)
7.10 Place (unit 22)
7.11 Branding (unit 23)
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7.4 Market size, market share and market growth (unit 15)
Market size

Total sales of all companies in the market.

It can be measured by the number of
customers, the sales value or the sales
volume.
Tamaño del mercado

Market share (a.k.a. market penetration)

Proportion of a particular market that is held by a business, a product or a brand or
by a group of businesses or products.
Cuota de mercado Sales of a business
Market share =  100%
Total sales in the market

Market growth
Increase in the size of a market.
Crecimiento del mercado 19
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CONTENTS
7.1 The nature of marketing (unit 11)
7.2 Market research (unit 12)
7.3 Market segmentation (unit 14)
7.4 Market size, market share and market growth (unit 15)
7.5 The marketing mix (unit 16)
7.6 The product life cycle (unit 17)
7.7 New product development and product portfolio analysis (unit 18)
7.8 Price – influencing the market (unit 19)
7.9 Promotion (unit 21)
7.10 Place (unit 22)
7.11 Branding (unit 23)
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7.5 The marketing mix (unit 16)

Marketing mix (4 Ps)

Set of decisions relative to the controllable elements of a product's marketing plan.

It is commonly termed the 4 Ps: Product, Price, Place, and Promotion.
Mix de mercado (4 Ps)

Product’s unique selling point (a.k.a. product’s unique selling proposition)

Real or perceived benefit of a good or service that differentiates it from the
competing brands and gives its buyer a logical reason to prefer it over other
brands.
Característica distintiva/diferenciadora del producto

Packaging

Different ways of protecting a product in order to preserve its qualities and to

facilitate its transportation. It also provides information about the product
characteristics and the brand.
Envase
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CONTENTS
7.1 The nature of marketing (unit 11)
7.2 Market research (unit 12)
7.3 Market segmentation (unit 14)
7.4 Market size, market share and market growth (unit 15)
7.5 The marketing mix (unit 16)
7.6 The product life cycle (unit 17)
7.7 New product development and product portfolio analysis (unit 18)
7.8 Price – influencing the market (unit 19)
7.9 Promotion (unit 21)
7.10 Place (unit 22)
7.11 Branding (unit 23)
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7.6 The product life cycle (unit 17)

Product life cycle (product development, introduction, growth, maturity,

decline)
Different stages every product goes through.
During product development no sales are made but costs are incurred.
During introduction, sales revenue starts.
During growth this sales revenue increases significantly.
During maturity sales revenue stabilizes.
Finally, decline occurs when sales revenue starts to fall eventually becoming too
low to be viable.
Ciclo de vida del producto

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7.6 The product life cycle (unit 17)

Fads
Goods or services with a very short product
life cycle length. Their sales increase very
rapidly but decline almost as fast.
Modas pasajeras

Extension strategies
The attempt by a company to extend the lifetime of a product by increasing its
sales through, for example, making changes to it or finding new uses for it.
Estrategias de extensión de la vida del producto

Capacity utilisation

The extent to which a business uses the capacity that it has to produce a particular
product.
Used capacity
Tasa de utilización de la capacidad Capacity utilisation =  100%
Available capacity 24
 MARKETING

CONTENTS
7.1 The nature of marketing (unit 11)
7.2 Market research (unit 12)
7.3 Market segmentation (unit 14)
7.4 Market size, market share and market growth (unit 15)
7.5 The marketing mix (unit 16)
7.6 The product life cycle (unit 17)
7.7 New product development and product portfolio analysis (unit 18)
7.8 Price – influencing the market (unit 19)
7.9 Promotion (unit 21)
7.10 Place (unit 22)
7.11 Branding (unit 23)
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7.7 New product development and product portfolio analysis (unit 18)
Product, good and service
A product is anything that can be exchanged and is able to satisfy customers'
needs or wants. Goods are tangible physical products while services are intangible,
non-physical ones.
Producto, bien y servicio
Industrial versus consumer products
Producer (or industrial) products are used to make other goods and services or
used in the operation of a business.
Consumer products are ordinarily bought by individuals or households for private
consumption.
Productos industriales y productos de consumo

Tangible versus intangible benefits

Tangible benefits are benefits that can be quantified.
Intangible benefits are more subjective benefits and cannot be measured.
Beneficios tangibles e intangibles
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7.7 New product development and product portfolio analysis (unit 18)
Characteristics of a “good” product
A “good” product should be functional and fulfill the needs of customers.
It should be aesthetically pleasing.
It should be affordable.
It should conform to quality standards as well as to any legal requirements.
It should be environmentally and socially friendly.
Características de un “buen” producto
Unique selling point/proposition
Real or perceived benefit of a good or service that differentiates it from the competing
brands and gives its buyer a logical reason to prefer it over other brands.
Característica distintiva/diferenciadora del producto
Brand loyalty
The extent to which customers of a brand repeat purchases of that brand rather
than buying others.
Fidelidad a la marca
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7.7 New product development and product portfolio analysis (unit 18)
Product portfolio/mix
The particular set of products which a
firm is marketing.
Cartera de productos

Product line
A group of products which are similar.
Línea de productos
Boston Consulting Group Matrix (stars, cash cows, problem children, dogs)

Classification of the products in the product portfolio according to two criteria:

market growth rate and relative market share.
Stars have great future potential. They are future cash cows.
Cash cows might be milked for cash, which can then be used to develop other
products. Or the business may decide to spend just enough on promotion and
development to maintain sales and market share, known as holding. 28
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7.7 New product development and product portfolio analysis (unit 18)
Boston Consulting Group Matrix (stars, cash cows, problem children, dogs)

For problem children a business has choices. It can build the brand, hoping to
turn it into a star, harvest the product by raising price and cutting promotion so that
profits are increased, or divest itself of the product, withdrawing it or selling it
because it is not making a profit.
Dogs may be sold off if they are not making a profit or in some cases harvested.
Productos estrella, vaca, interrogante y perro

New product development (NPD)

A business needs to develop and launch new
products to replace products at the end of
their life cycles and also to keep up with
changes in the market.
Desarrollo de nuevos productos

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CONTENTS
7.1 The nature of marketing (unit 11)
7.2 Market research (unit 12)
7.3 Market segmentation (unit 14)
7.4 Market size, market share and market growth (unit 15)
7.5 The marketing mix (unit 16)
7.6 The product life cycle (unit 17)
7.7 New product development and product portfolio analysis (unit 18)
7.8 Price – influencing the market (unit 19)
7.9 Promotion (unit 21)
7.10 Place (unit 22)
7.11 Branding (unit 23)
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7.8 Price – influencing the market (unit 19)

Factors that influence prices

The pricing strategy used by a business may be influenced by the business
objectives, the other elements of the marketing mix, the production cost, the
competition, the demand, customers’ perceptions, laws and regulations, etc.
Factores que afectan al precio de venta

Value for money

Utility derived from every purchase or every sum of money spent. This means not
paying more for a good or service than its quality and availability justify.
Buena compra/Dinero bien gastado

Pricing strategy
Different ways of determining the selling price of a product. Usually, the pricing
strategies of new products (e.g. market skimming or penetration pricing) are
different from those of existing products.
Estrategia de fijación de precios
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7.8 Price – influencing the market (unit 19)

Cost based pricing

Methods of pricing products which are based upon costs.
Precios basados en los costes

Cost plus pricing

The price of a product is set to the product acquisition cost plus a mark-up.
Precios basados en el coste de adquisición
P r ice  Acquisition cost  markup

Contribution pricing
The price of a product is determined so as to cover its direct costs and any
contribution above that is used to cover the indirect costs and eventually to obtain a
profit.
Precios basados en márgenes

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7.8 Price – influencing the market (unit 19)
Direct versus indirect costs
Direct costs (such as labor, materials, fuel or power) are expenses that can be
traced directly to a specific cost center such as a process or product. Since direct
costs vary with the rate of output but are uniform for each unit of production, they
are also called variable costs.
Indirect costs (such as for advertising, IT, maintenance or insurance) are expenses
incurred in joint usage and, therefore, difficult to assign to a specific cost center.
Since indirect costs are usually constant for a wide range of output, they are
grouped under fixed costs.
Costes directos e indirectos
Contribution
Amount left over after variable costs are deducted from the sales revenue. Also
called gross income, this sum pays for fixed costs and contributes to net income.
Margen bruto
Contribution  sales revenue  variable costs  fixed costs  net income
Gross profit  turnover  cost of sales
Operating profit  gross profit  expenses
Net profit  operating profit  non operating income  interests  EBIT  interests
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7.8 Price – influencing the market (unit 19)

Marginal cost
The increase in the total cost of a production run for making one additional unit of
an item.
Coste marginal/incremental

Absorption cost (a.k.a. full cost pricing)

The price of a product is set to the total unit cost plus a mark-up. The total unit cost
is the sum of the unit direct cost plus an allocated share of the indirect costs.
Precios basados en coste total

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7.8 Price – influencing the market (unit 19)
Target profit pricing
The price of the product is set so that a target level of profit is attained.
Precios basados en beneficio deseado
Fixed costs  Target Profit
P r ice  Variable cost 
Quantity sold

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7.8 Price – influencing the market (unit 19)

Break-even analysis
Graphical representation of the relationship between total costs and sales revenue.
Total costs include fixed costs and variable costs. The break-even point
corresponds to the number of units that must be sold at a given price to cover the
total costs. Above that amount of sales profits are obtained.
Cálculo del punto muerto

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7.8 Price – influencing the market (unit 19)

Market-oriented / market-based pricing

Methods of pricing based upon the conditions in the market at which a product is
aimed.
Precios basados en el mercado

Penetration pricing
Pricing a product at a low level to encourage retailers and consumers to purchase
the product in large quantities. This allows achieving a high volume of sales and
deep market penetration of a new product.
Precios de penetración

Market skimming
Charging a high price for a new product for a limited period. The aim is to gain as
much profit as possible for a new product while it remains unique in the market.
Later on, the price can be reduced drastically to capture the low-end buyers and to
fight the copycat competitors.
Descremar el mercado / Descremado del mercado
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7.8 Price – influencing the market (unit 19)

Customer value pricing

Method of pricing based on charging the price that consumers are prepared to pay.
Precios basados en el valor para el cliente

Loss leader
Product with a price set deliberately below average total cost to attract customers
who will then buy other, more profitable, products.
Producto gancho

Psychological pricing
This method of pricing takes into account the psychological effects of prices on
consumers.
Precios psicológicos

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7.8 Price – influencing the market (unit 19)

Time-based versus market-based price discrimination

Price discrimination involves charging different prices to different customers for the
same product.
Time-based price discrimination occurs when the prices are different depending on
the time of day or the day of the week in which the sale or consumption takes place.
Market-based price discrimination consists in offering the same product in different
market segments at different prices.
Discriminación de precios por mercados vs. Discriminación de precios intertemporal
Competition-based pricing
Methods of pricing based upon the prices charged by competitors.
Precios basados en la competencia
Going rate pricing
Setting a price in line with those of competitors.
Precios de mercado

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7.8 Price – influencing the market (unit 19)
Price leadership
When a dominant business in a market sets a price that most competitors are forced
to match for fear of losing market share or risk of setting off a price war.
Liderazgo en precios
Destroyer pricing (a.k.a. Predatory pricing)
Cutting prices, sometimes greatly, for a period of time long enough for rivals to go
out of business. It can only be undertaken by large, established firms capable of
absorbing short-term losses.
Precios predatorios
Tender
A tender is a formal written offer to provide goods or services for a particular price.
Oferta de suministro
Closed bid pricing
Setting the price low enough to win the contract but not so low as to lose money if
the contract is won.
Precios de sobre cerrado 40
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7.8 Price – influencing the market (unit 19)

Pricing tactics
Temporary, short-term changes in prices to attract customers to specific products for
a period of time.
Tácticas de precios
Buy One, Get One Free (BOGOF)
Typical special promotional offer.
Oferta 2x1

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CONTENTS
7.1 The nature of marketing (unit 11)
7.2 Market research (unit 12)
7.3 Market segmentation (unit 14)
7.4 Market size, market share and market growth (unit 15)
7.5 The marketing mix (unit 16)
7.6 The product life cycle (unit 17)
7.7 New product development and product portfolio analysis (unit 18)
7.8 Price – influencing the market (unit 19)
7.9 Promotion (unit 21)
7.10 Place (unit 22)
7.11 Branding (unit 23)
42
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7.9 Promotion (unit 21)

Promotion
The marketing mix tool whose aim is to retain and obtain customers by drawing
attention to the firm and/or to its products, thus increasing brand awareness and sales.
Promoción comercial

Objectives of promotion
The main aim of any promotion is to obtain and retain customers. Other possible
objectives are:
• To make potential consumers aware of a product and remind current customers.
• To reach a target audience which might be geographically dispersed.
• To show a product is better than that of a competitor.
• To reassure consumers after the product has been purchased.
• To support an existing product. Such promotions may be used to remind
consumers that a quality and well thought of product is still available.
Objetivos de la promoción comercial

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7.9 Promotion (unit 21)

Above-the-line promotion (a.k.a. advertising)

A form of communication between a business and its customers where the
business uses visual, oral or multimedia means and different communication
channels to encourage the purchase of products.
Publicidad
Informative advertising
Advertising which primarily seeks to provide consumers with information about a
product.
Publicidad informativa
Persuasive advertising
Advertising which primarily tries to convince consumers to purchase a product,
often stressing that it is more desirable than others.
Publicidad persuasiva

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7.9 Promotion (unit 21)

Reassuring advertising
Advertising aimed at current customers and that tries to persuade them that their
purchase was a good decision and that they should continue buying the product.
Publicidad de refuerzo
Advertising media
The various means by which advertisement can be communicated to the public (e.g.
TV, radio, newspapers, magazines, internet, billboards and transport, etc).
Canales de publicidad / publicitarios
Below-the-line promotion
Any promotion that is not advertising (e.g. press releases, sponsorship, company
visits, merchandising, sales promotions, packaging, exhibitions and trade fairs,
product placement, etc).
Promoción no publicitaria

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7.9 Promotion (unit 21)

Merchandising
A promotion specifically at the point of sale of a product and aimed at encouraging
sales (e.g. display material, layout of products in the retail outlets, lighting, etc).
Promoción en el punto de venta
Sales promotions
Incentives offered to consumers to encourage them to buy goods and services (e.g.
coupons, loyalty cards, discounts, free gifts, competitions and lotteries, etc).
Promoción de ventas
Direct selling (a.k.a. personal selling)
When a company’s sales team promotes a product through personal contact over
the telephone, in retail outlets or by setting up meetings.
Venta directa

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7.9 Promotion (unit 21)

Direct mailing
Direct mailing involves sending information about a product or product range
through the post or e-mail. The consumer can usually buy the product by placing
an order by post, telephone or internet.
Publicidad directa
Promotional mix
The mixture of promotional techniques used by a business to promote its products.
Mix promocional
Factors that affect the promotional mix
• The type of product
• The type of market
• The cost of each type of promotion
• The promotional mix of competitors
• The stage of the product in its life cycle
Factores que determinan el mix promocional 47
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CONTENTS
7.1 The nature of marketing (unit 11)
7.2 Market research (unit 12)
7.3 Market segmentation (unit 14)
7.4 Market size, market share and market growth (unit 15)
7.5 The marketing mix (unit 16)
7.6 The product life cycle (unit 17)
7.7 New product development and product portfolio analysis (unit 18)
7.8 Price – influencing the market (unit 19)
7.9 Promotion (unit 21)
7.10 Place (unit 22)
7.11 Branding (unit 23)
48
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7.10 Place (unit 22)

right place, right time

Products need to be available to customers in the place where they want to buy
and at the time they want to buy.
En el sitio justo, en el momento justo
Distribution channels
The paths taken by the products as they go from the manufacturer to the customers.
Canales de distribución
Marketing intermediary (a.k.a. Middleman)
A business or individual which acts as a link between the producer and the customer.
Intermediario comercial
Direct marketing
When a business sells its products directly to consumers without passing through
retailers or wholesalers.
Distribución directa
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7.10 Place (unit 22)

Retailer
A business which buys goods from manufacturers and wholesalers and sells them
to customers, typically in smaller quantities and in a place convenient to the buyer.
Detallista / Comercio minorista / Comerciante al por menor
To break bulk
To order large quantities of goods from a supplier and sell them in smaller quantities.
Vender al detalle / vender al detal
Wholesaler
A type of business which buys goods from manufacturers and sells them in smaller
quantities to retailers.
Mayorista
Cash and carry
A wholesaler whose customers, usually small shops, visit the premises and take
away what they have purchased paying for it in cash (or bank card).
Cash and carry / Cash & carry
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7.10 Place (unit 22)
Agents and brokers
Intermediaries which bring buyer and seller together and arrange the contract for
the sale of products between the supplier and the customer.
Agente comercial / Corredor de comercio
Number of levels of a distribution channel
The number of levels in a distribution channel corresponds to the number of links
between the producer and the customer.
Longitud de un canal de distribución

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7.10 Place (unit 22)

Factors that influence the choice of distribution channels

• Cost. The longer the supply chain, the greater the cost to the final customer.
• Number and location of customers.
• Control. Some manufacturers prefer to control their own distribution channel.
• Laws and regulations (e.g. drugs, petrol, etc)
Factores que influyen en la elección del canal de distribución
Physical distribution
Handling, movement and storage of goods from the point of production to the point of
consumption or use, via various channels of distribution.
Distribución física
To hold stock
A business needs to hold stocks to guarantee its customers the products they want
whenever they want them.
Almacenar productos / Mantener en inventario
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CONTENTS
7.1 The nature of marketing (unit 11)
7.2 Market research (unit 12)
7.3 Market segmentation (unit 14)
7.4 Market size, market share and market growth (unit 15)
7.5 The marketing mix (unit 16)
7.6 The product life cycle (unit 17)
7.7 New product development and product portfolio analysis (unit 18)
7.8 Price – influencing the market (unit 19)
7.9 Promotion (unit 21)
7.10 Place (unit 22)
7.11 Branding (unit 23)
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7.11 Branding (unit 23)

Brand
A name, term, sign, symbol, design or any other feature that allows consumers to
identify a firm's goods and services and differentiate them from those of competitors.
Marca
Brand name versus brand mark
The brand name is the part of the brand that can be spoken, such as the name of the
product.
The brand mark is the design or symbol used in the brand.
Nombre de marca y logotipo
Trademark
The sign, symbol or other feature of a business that can be protected by copyright.
Marca comercial
Trade name
The registered name of the business, which can sometimes be used as a brand name.
Nombre comercial 54
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7.11 Branding (unit 23)
Brand positioning
Brand positioning refers to finding and emphasizing reasons for the target
consumers to buy your brand in preference to others. It ensures that all brand
activity is consistent with the brand’s reasons to buy.
Posicionamiento de marca
Manufacturer brands
Brands created by the producers of goods and services.
Marcas de fabricante

Own-label brands (a.k.a. distributor or private brands)

Products which are manufactured for wholesalers or retailers by other businesses
and that are sold by the former under their own names.
Marcas blancas
Generic brands
Products that only contain the name of the product category rather than the company
or product name.
Marcas genéricas 55
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7.11 Branding (unit 23)

Individual branding
Branding strategy under which each product has its own brand, different from every
other product in the same product family or from the same firm.
Marcas individuales
Family branding
Brand name which includes a number of different, related products.
Marca de familia de productos
Corporate branding (a.k.a. company branding)

When the name of the business is used as the brand name.

Marca de empresa / Marca corporativa
Brand extension versus brand stretching
Brand extension = when the brand name is used for new products in related markets.
Brand stretching = when the brand name is used for new products in unrelated
markets.
Extensión de marca y estiramiento de marca 56