IB Business Management 4.2 Marketing Planning Key Definitions

The unique attributes or capabilities that allow a business to outperform its competitors. It enables a company to offer superior value to customers, whether through lower costs, differentiated products, superior quality, brand reputation, or innovation.

Customization refers to the process of producing one-off, bespoke items tailored to meet specific customer requirements.

Differentiation is the process of making a product or service distinct from competitors in ways that are valuable to customers.

A marketing audit is a comprehensive analysis of the internal and external factors affecting a business.

Marketing strategies outline how a business will achieve its objectives.

Marketing planning is the systematic process of setting objectives, analyzing market conditions, identifying target audiences, and designing strategies to achieve business goals.

A mass market targets a large, broad audience with standardized products or services designed to appeal to as many people as possible.

A niche market is a small, specialized segment of a larger market that focuses on specific customer needs, preferences, or interests.

Position maps, also known as perceptual maps, are visual tools that illustrate how consumers perceive products in relation to competitors.

Positioning involves creating a unique image or identity for a product in the minds of consumers.

Segmentation is the process of dividing a market into smaller, distinct groups of consumers who share similar characteristics or needs.

Specialization allows businesses to focus on what they do best, improving efficiency and quality.

Targeting is the process of choosing which market segments to focus marketing efforts on.

A Unique Selling Point (USP) is a distinctive feature or benefit that sets a product or brand apart from its competitors, creating a compelling reason for customers to choose it.