Summary of Essential Business and Marketing Terms

## Introduction Marketing explores how businesses present and sell their products or services to customers. This material summarizes key concepts that will help you understand processes such as pricing, branding, advertising, and consumer behavior. This material is intended for university students as a quick overview of terminology and practical applications in marketing. ## Basic Concepts and Definitions > **Pricing:** The method a company uses to set the prices of its products or services. > **Product placement:** A form of advertising where a product is featured or used in films or television programs. > **Realisation:** The moment when you begin to understand a situation. > **Recognised:** The state of being generally accepted as having a particular position or quality. > **Reduced (price):** A price that is lower than it was previously or lower than the usual price. > **Reference:** The act of mentioning something. > **Actual:** Real; existing in fact. > **Adaptability:** The ability or willingness to change in order to suit different conditions. > **Advertising:** The activity of trying to persuade people to buy products or services. > **Attitude:** A feeling or opinion about something, or a way of behaving that results from this attitude. > **Available:** Able to be bought or used. > **Bargain:** An item for sale at a lower price than its true value. > **Basket:** A section on a website where you collect items you intend to purchase. > **Behavioural economics:** The study of why people make decisions influenced by emotions and habits rather than pure rationality. > **Belief:** A feeling of certainty that something is true or exists. > **Brand:** A type of product manufactured by a particular company and sold under a specific name. > **Branding:** The activities involved in making a product or organization easily recognizable and distinct from others. > **Browse:** To look through books, magazines, or products in a store without a firm intention to buy. > **Buzzword:** A word or phrase from a specialized field that becomes popular. > **Checkout:** The place in a store where you pay for your purchases. > **Claim:** A statement that something is true, even though others may not believe it. > **Commission:** 1) An assignment or order for work; 2) A payment linked to sales. > **Consideration:** The act of thinking about something carefully. > **Convince sb of sth:** To persuade someone that something is true or exists. > **Deliberately:** On purpose; intentionally. > **Deploy:** To use something (such as ideas or resources) for a particular purpose. > **Designate:** To officially choose someone or something for a particular purpose or task. > **Desirable:** Something that most people want or wish for. ### Practical Breakdown: Marketing Activities by Objective | Objective | Activity | Example | | --- | --- | --- | | Increasing Awareness | Branding, advertising, product placement | A brand funds product placement in a film to increase awareness | | Sales Promotion | Reduced prices, bargains, commissions | Seasonal discounts, commissions for salespeople | | Improving User Experience | Adaptability, availability, basket, checkout | Optimizing the e-shop basket and product availability | | Managing Perception | Claims, references, recognized status, beliefs | PR articles, customer testimonials, certificates | ## How Consumers Make Decisions - Behavioural economics explains that decisions are often not purely rational; emotions, heuristics, and social influences play a significant role. - Attitude and belief shape whether a customer perceives a product as desirable. - Pricing and a reduced price can evoke a sense of a bargain, which increases conversion. Example: Company A reduces the price by 20% (reduced) and simultaneously uses product placement in a popular film. A consumer with a positive attitude towards the brand has a higher likelihood of purchase. Did you know that short-term discounts can