IB Business Management Unit 4: Marketing Management - the 7 P's, Strategies and Forecasting Key Definitions

Academic journals publish research-based articles written by experts.

Agents act as intermediaries between producers and buyers but do not take ownership of the goods.

The BCG Matrix (Boston Consulting Group Matrix) is a strategic tool used in business management to analyze a company’s product portfolio and help with investment decisions. It categorizes products or business units based on market growth rate and relative market share.

A brand is a name, term, sign, symbol, or design (or a combination of these) that identifies the goods or services of a seller and differentiates them from competitors.

Brand awareness measures how well consumers recognize and recall a brand.

Brand development involves creating and refining a brand's identity to resonate with its target audience.

Brand loyalty measures the extent to which customers repeatedly choose a brand over competitors.

Brand value refers to the financial and non-financial benefits a brand brings to a business.

The movement of money into and out of a business over a specific period. It includes both cash inflows (receipts) and cash outflows (payments).

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.

Competitive pricing involves setting prices based on what competitors charge, ensuring your product remains attractive in the market.

Contribution is the amount of money left after subtracting variable costs from sales revenue. It helps cover fixed costs and, once those are covered, contributes to profit.

Contribution pricing focuses on setting prices based on the contribution margin — how much each sale contributes to covering fixed costs after variable costs are deducted.

Convenience sampling involves selecting participants who are easiest to access, such as nearby individuals or those readily available online.

Cost-plus pricing is a straightforward method where a business calculates the total cost of producing a product and then adds a mark-up to ensure profit.

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.

Distribution channels are the pathways through which products travel from the producer to the consumer. They can be direct or involve intermediaries.

Diversification refers to a strategy where a company expands its product offerings, markets, or industries to reduce risk and increase growth opportunities.

Dynamic pricing involves adjusting prices in real-time based on demand, competition, or other factors.

Economies of scale occur when a business's average cost per unit decreases as its production scale increases.

Focus groups bring together a small group of people to discuss a specific topic, guided by a moderator. These sessions are designed to explore diverse perspectives and generate dynamic discussions.

Government publications offer official data on economic, demographic, and industry-specific trends.

Interviews involve direct conversations between an interviewer and a respondent, allowing for detailed exploration of opinions, experiences, and motivations.