1.1 Flashcards
Risk
Exists because entrepreneurs commit resources (such as money) that could be lost
Uncertainty
Exists because businesses operate in an ever-changing environment and are subject to changing external factors
Niche market
Targets a small population of the market with a specialised product
Mass market
Targets a large population of the market with a generic product
Brand
Something that distinguishes a business from their competitors that is easily recognisable such as a logo or slogan §
Dynamic market
A market that is constantly in flux and businesses constantly need to adapt in order to stay competitive
Primary research
Research that is collected first hand, it is up to date and specific to the business
Secondary research
Research that already exists and has been conducted from someone else
Secondary research
Research that already exists and has been conducted from someone else
Product orientation
Focused on production efficiencies and the product itself
Market orientation
Focused on the customer needs, understanding customers and developing products to meet their needs
Market segmentation
The process of diving customers within the market into groups based on their characteristics, such as age
Market maps
Technique used to understand how products and businesses are viewed relative to competitors based on two relevant characteristics
Competitive advantage
A set of unique features of a business and its products that are perceived as significant and superior to the competition
Differentiation
The process of making a product different from competitors products
