Defenitions Flashcards
Market Share
The percentage of total market sales accounted by one firm
Market segmentation
Dividing the market up into groups of potential customers, each with different characteristics
Market Mapping
Using a graph to plot existing products in terms of various criteria. It can identify various market segments and gaps in the market
Market Size
The volume or value of sales of a product type
Correlation
A statistical technique used to establish the strength of a relationship between two sets of values
Mass Marketing
A standard product, designed to appeal to a large section of the population
Secondary Market research
The use of information that has already been collected
Target market
The type of customer that a firms product or service is aimed at
Test Marketing
The introduction of a product to a certain geographical area, in order to assess it’s likely success, or evaluate the effectiveness of marketing methods
Cash flow
The money that flows into and out of a business over a given time period
Demographic
The size and structure of the population including features life age profile gender and ethnic makeup
Limited Liability
Shareholders can only lose the money invested in the company not their entire personal wealth if the business collapses with debts
Profit
Total revenue - total costs
PLC
Large firms whose shares can be bought and sold by the general public on the stock exchange
Sole Trader
An individual who owns and runs a business. They operate under unlimited liability so are personally responsible for all business debts
Shareholder
Part owners of a business who can vote at the AGM and receive dividends
Dividends
A portion of profits of the firm given to shareholders
