1.1.1 - The Market Flashcards
Definition of Markets
A Market is any place that buyers and sellers will come together to
exchange goods or services. There will normally be an exchange of money at a set price
Definition of Marketing
The department tasked with targeting the right product for the right target market using the right combination of price, promotion and place (4P’s)
Definition of Mass Market
The attempt to create products or services which is targeted at
the whole market e.g. Mars Bar
Definition of Niche Market
The attempt to create products or services which is targeted
toward a specific segment of a market e.g. Hotel Chocolat
Definition of a Brand
A brand is a product produced by one business using a specific name. Branding involves the creation of an identity for the business that distinguishes that firm and its products from other firms
Competitive Advantage
Competitive advantage is a feature of a business that allows it to perform more successfully than others in a market.
Degree of Competition
Number of firms that exist within a market
Product Innovation
Occurs when new technologies make it possible to create completely new products.
Process Innovation
Means using new technology to improve production methods, so that costs are reduced without a loss in quality. This could also be through distribution channels, stock control system & supply chains
Definition of Market Size
This is the total value or volume of sales in the market. It can be
measured in monetary terms e.g. £20 million or by the amount sold e.g. 1 million cars
Market Share
This is the proportion of total market sales that a firm has
Sales of one firm / Total market sales x 100
Definition of Dynamic Market
A market that is constantly changing. Sellers respond to the
changing needs of buyers by improving existing products and services or introducing new ones.
Definition of Stable Market
A market in which the pace of change is slow; market size & market share are fairly constant with little variation in price. Innovation is rare and may just consist of minor changes to existing products.
Definition of Online Retailing
The process of buying and selling goods and services over the internet, also known as e-commerce or e-tail.
Digital Economy
An economy built on technologies. The internet facilitates the
use of this technology
Government Intervention
Increasing legislation in an industry can alter the way the market operates, e.g. the automobile market has been affected due to laws reducing carbon emissions.
Market Positioning
How individual products or brands are seen in relation to their competition by the consumers. This may stem from pricing, marketing or quality.
Product Differentiation
Occurs when businesses make their product different from competing products. This may involve giving it unique features.
Definition of Added Value
The value of the finished good or service over and above
the cost of achieving it. This is achieved when a business increases the worth of its factor inputs by creating new output
