Key Term Definitions Flashcards
What is a niche market?
A business that targets a small specific segment of a market
What is a Mass market?
A business that focuses on the majority / big segment of the market
What is market share?
The percentage of the market owned by each competitor
What is Market Growth?
The amount by how much the market has increased or decreased over a period of time
What is a Market?
Platforms where buyers and sellers come together to determine prices and allocate scarce resources
What is a Brand?
A name, sign, symbol, design or slogan linked to a particular product or service in order to differentiate from competition.
What is innovation?
the development of a new idea which leads to the production of a new product or service which can be sold
What is meant by Sales Volume?
the quantity of goods or services sold within a specific period e.g price x quantity sold
What is a competitor?
any business that sells the same or similar products or services
What is competition?
When two or more organisations act independently to aim and supply a product at the same target market
What is direct competition?
Competitors who produce the same type of goods as their rivals and try to best them on price and quantity availability
What is indirect competition?
Competitors who offer goods that can be used as a substitute
What is a competitive market?
when there are many producers competing to provide consumers with the goods and services needed
What is uncertainty?
Unexpected events that occur that can have a dramatic effect on the performance of markets / industries
What is market orientation?
A market that prioritises the customer
What is market research?
The process of gathering and interpreting data about costumers and competitors within a firms target market to help businesses reduce risk and make decisions
What is a focus group?
A group interview - where people are asked questions or given scenarios. and asked for their opinions about a product or service.
What is Government data?
Information collected, produced, or paid for by the government that is made available to the public for free
What are market reports?
A wide range of data available, (specific to an industry) which can help you build up a picture of general trends and your customers’ buying habits.
What are market segments?
A way of dividing target markets into groups of identifiable individuals categorised by common characteristics or needs.
What is Primary Market Research?
Original data gathered by the researcher
What is Secondary Market Research?
Research gathered based off data that already existed
What is Qualitative research?
Research that seeks to gather and explore feelings and thoughts about a product from consumers - e.g interviews, focus group discussions
What is Quantitative Research?
Research that involves gathering numerical data and measuring responses, displayed in charts / graphs as statistics and percentages
What is a sample?
smaller group of people from a larger population to collect data
What is segmentation?
The process of dividing a target market of identifiable people into different groups based on characteristics or needs / wants.
What is test marketing?
a method that aims to explore consumer response to a product or marketing campaign by making it available on a limited basis to test markets before a wider release.
What is added value?
The difference between the price that is charged to the customer and the cost required to create the product or service
What is a competitive advantage?
a way that businesses can make its products or services appear superior to the competition to the target market
What is differentiation?
The process to distinguish a product or service from other similar ones available in the market
What is market mapping?
The process of visually organising information by plotting a graph to understand competitors behaviour and identify gaps within a market.
What is market positioning?
marketing strategy that helps a business establish a unique identity for its product or brand in the minds of consumers.
What is a product?
an item offered for sale by a company
What are complementary goods?
products or services that are used together or add value to each other.
What is consumer income?
The amount of money consumers make
What is demand?
The quantity of a good that consumers are willing and able to purchase at various prices during a period of time
What is meant by demographics?
statistics that describe the characteristics of a population, and are used to understand customers and target markets
What are external shocks?
unexpected events that originate outside of a country’s economy and can have a significant impact on it.
What is seasonality?
predictable changes that occur over a one-year period in a business or economy based on the seasons including calendar or commercial seasons.
What are substitutes
goods that can be used in place of another product to serve the same purpose
What is a Government?
the group of people with the authority to govern a country or state; a particular ministry in office.
What are subsidies?
when a government provide financial assistance to its companies to produce or export goods at artificially low prices.
What are indirect taxes
a tax that the government imposes on producers, but is passed on to the consumer as part of the price of a good or service
What is supply?
The amount of units of a product that producers and firms are willing to sell at a given price
What is the equilibrium price?
where the supply and demand curve cross
What are non price factors?
ways that businesses can compete with each other without lowering prices, e.g design mix
What are the shortages in the market?
when the quantity demanded is greater than the quantity supplied at the market price.
What is surplus in markets?
when the supply of a product or service is greater than the demand:
What are luxury goods?
Goods that are expensive and high-quality
What is a Necessity?
Products that are needed and not usually a want.
What is meant by price elastic?
A product in which the price can change dramatically if the supply or demand goes up / down.
What is price elasticity of demand (PED)?
PED measures the extent to which a quantity of a product demanded is affected by a change in price
% change in quantity demanded / % change in price
What is price inelastic?
A product in which the price does not change by much even if supply or demand go up or down
What is income elasticity of demand? (YED)
Measures how a quantity of a product demanded is affected by a change in price
% change in quantity demanded / % change in income
What is an inferior good?
a product that demand decreases when a consumer’s income increases.
What is the marketing mix?
The set of actions, or tactics that a company uses to promote its brand or product (or service) in the market
What are social trends?
changes in attitudes, behaviours and lifestyles of people
What are aesthetics?
Part of the product design mix, the product’s visual and sensory appeal, including its form, shape, colour, and texture.
What is cost (design mix)?
how cost-effective the product will be to manufacture, eg the product should be made and sold profitably
What is design for recycling?
A process that involves designing products and plastic packaging with the ultimate goal of becoming recycled materials.4
What is design for reuse?
Designing a product that can be re used
What is design for waste minimisation?
Designing a product whereby the production process doesn’t use many raw materials.
What is the design mix?
the combination of various design elements that are used to create a product or service (double check book)
- Aesthetics, function,
What is ethical sourcing?
products and services from each point in a business’s supply chain are obtained in an ethical way
What is function?
How the product works / the purpose of a product
What is re branding?
the process of changing the corporate image of an organisation. It is a market strategy of giving a new name, symbol, or change in design for an already-established brand.
What is resource depletion?
the reduction or exhaustion of natural resources due to overconsumption, excessive extraction, or unsustainable use
What is advertising?
it involves a business paying to have their product or service promoted in a public space
What is customer loyalty?
an ongoing emotional relationship between you and your customer, manifesting itself by how willing a customer is to engage with and repeatedly purchase from you versus your competitors
What are digital communications?
involves sending and receiving such information electronically
What is direct marketing?
selling products by dealing directly with consumers rather than through intermediaries
What is emotional branding?
a strategy where companies build strong emotional connections with their customers by appealing to their values, beliefs, and emotions
What is personal selling?
where businesses use people (the “sales force”) to sell the product after meeting face-to-face with the customer
