CAMBRIDGE AS LEVEL
BUSINESS 9609
UPDATED SYLLABUS 2023
REVISION
56 DEFINITIONS UNIT 3
MARKETING
Revision for students
SIR MUZAMMIL BUSINESS SCHOOL
DEFINITIONS UNIT 3
Marketing
Marketing is the process of identifying, anticipating, and satisfying customer requirements profitably by getting
the right product to the right place and right time at the right price
Marketing objectives
Marketing objectives are the targets that a business sets to achieve through its marketing department. It could
include increasing brand awareness, Customer satisfaction or Increased market share
Demand
The quantity of a product that consumers are willing and able to buy at a given price in a particular time period
Supply
The quantity of a product that firms are prepared to provide at a given price in a given time period
Market size
The total value of sales of all producers of the same product in a market. for example, the total sales of all
mobile producers can be the size of the mobile market size.
Customer relationship management
CRM is a process for managing a company's relationships and interactions with customers and potential
customers effectively to increase revenue
Marketing mix
Marketing mix is a marketing model of 4Ps decisions product, price, place, and promotion designed to attract
customers
Sir Muzammil Business School
DEFINITIONS UNIT 3
Market growth
Market growth means to show a change in the percentage of the market size of a particular product or service.
It is calculated as
Market share
Market share is an individual business’s sales held within the market as a percentage of total industry sales. It
is calculated as
Product Orientation
A process where businesses mainly invest in making high-quality products and invest a high proportion of
resources on distinctive product features rather than marketing and then find customers to sell it. E.g. Ferrari
Market/Customer Orientation
A process where businesses focus on customer preferences – market research is used to identify customer
needs, perceptions, and potential demands and then business develops the product as per customer
demands. E.g. Pepsi, Coke
Segment
A group of consumers who have the same characteristics or features. For example, male and female
consumer groups and rich and poor consumer groups are segments
Sir Muzammil Business School
DEFINITIONS UNIT 3
Market segmentation
It is the process of dividing a large market into smaller identifiable groups of customers (known as segments) that
have similar wants, needs, and demand characteristics
Market gap
Some customers in a market are not having their needs satisfied in the known market gap
Target market
Specific group or segment of customers that the product is aimed to sell is known as the target market
Geographic segmentation
It is a type of segmentation where a business divides its market by location into different segments is known as
geographical segmentation
Demographic segmentation
It is a type of segmentation where a business divides its market according to the characteristics of people. It
includes age, gender, race, religion, nationality, disability, and occupation
Psychographic segmentation
It is a type of segmentation where a business divides its market according to lifestyles, social class, and
personality of population
Consumer market (B2C)
A market where a business sells its product to consumers directly. e.g. Cleaning business provides services to
home consumers
Sir Muzammil Business School
DEFINITIONS UNIT 3
Mass market
A mass market is a large market where the products are sold to everyone. E.g. Pepsi, Coke
Niche market
A niche market is a specialized sub-part of a large market that allows the supplier to meet the individual needs of
the customers. Niche marketing is aiming a product at a specific type of consumer. E.g. Ferrari
Loss leaders
A product that is sold below its cost price to sell another expensive product. E.g. CD with CD player
Psychological pricing
It means setting a price at just below a whole number, e.g. $5.99,
Industrial Market (B2B)
A market where a business sells its product to another business. e.g Cleaning business provides services to
offices
Channel of distribution
It includes those ways that businesses use to distribute their products to consumers These can be direct or
indirect
Sir Muzammil Business School
DEFINITIONS UNIT 3
Market research
It is a process of collecting and analyzing data and information about consumers, competitors, and suppliers to
inform a business about its market
Primary research
A type of market research where data is collected by someone first-hand about the market that didn't exist before.
Also known as field research
Focus group
These are selected people, typically 6-10 in number, who have agreed to take part in a discussion led by a
researcher
Secondary research
A process of market research that gathers information from the already available data and then starts that
research. It can use internal or external sources to collect information
Sampling
A primary market research method in which a group of people (sample) is selected from the whole population for
a certain kind of research purpose for example surveys, interviews or questionnaires
E-commerce
The buying and selling of goods and services by businesses and consumers through an electronic medium
Viral marketing
The use of social media sites or text messages to increase brand awareness or sell products
Sir Muzammil Business School
DEFINITIONS UNIT 3
Product Attributes
A product attribute is a characteristic that defines a particular product and will affect a consumer's purchase
decision
Tangible Attributes
Tangible attributes can include such product characteristics as size, color, weight, volume, smell, taste, touch,
quantity, or material composition
Intangible Attributes
Intangible attributes may include such characteristics as price, quality, reliability, beauty or aesthetics
Product differentiation
It the process of making a product distinctive so that it stands out from competitor products in the perception of
consumers
A unique selling point
It is something that makes a product stands out from the competitors, such as a phone with a new feature that no
other phones have
Internet (online) marketing
It refers to advertising and marketing activities that use the internet, email and mobile communications to
encourage direct sales via electronic commerce
Sir Muzammil Business School
DEFINITIONS UNIT 3
Product life cycle
PLC shows the changes in the pattern of sales of a product over time.
Extension strategies
It includes those ways that can extend a product life cycle. E.g. new packaging, adding new features
Brand
A brand is a name, sign or symbol used to differentiate a product or business from other products or businesses
Branding
Branding means using a logo, mark, name, or symbol in selling business products that can make a product stand
out from other business products
Product portfolio
It means different types of products, a business is offering to sell
Product portfolio analysis
Product portfolio analysis is the analysis of the range of a company's product mix in order to determine the
optimum allocation of resources
Sir Muzammil Business School
DEFINITIONS UNIT 3
Cost Plus Pricing
A pricing strategy where a business decides to sell its products by adding a fixed percentage of profit on cost
usually known as a markup in its existing buying or manufacturing cost
Penetration Pricing
In this pricing strategy, a business sells its products at a price lower than the competitor’s price in order to be able
to enter a new market, launch a new product, or increase its existing sales
Price Skimming
Price skimming is a pricing strategy that involves setting a relatively high price for a product or service and then
the price can be lowered (over time)
Competitive Pricing
Competitive pricing involves setting prices in line with the competitors’ prices or just below their prices
Price discrimination
A pricing strategy is when a business sets different prices from different groups of consumers for the same
product to increase profit
Dynamic pricing method
A pricing method when a business charge different prices of the same product base on demands or other factors
like weather.
Sir Muzammil Business School
DEFINITIONS UNIT 3
Promotion
Promotion is the marketing activity that communicates to customers in order to change their attitudes or buying
behavior
Above The Line promotion
It is the use of mass media to promote a business and reach out to the target consumers
Below-the-line promotion
Promotional activities where the business has direct control over the target or intended audience
Sponsorship
where an enterprise supports an event or organization in some way and receives publicity as a result. This might
include financial support point of sale
Sales promotion
It includes short-term methods to increase revenue. For example, BOGOF, discount, etc
Digital distribution
Digital distribution is the latest method to distribute products. For example, drowning distribution
Physical distribution
Physical distribution is a common method used by many businesses. For example, distribution through any
transport
Sir Muzammil Business School