Key Terms For Test 20th Novmeber 2018 Flashcards
Mass Market
A very large market
Niche market
A small market or a sub market
Market size
The total sales of all firms in a given market
Market share
The proportion of total market sales held by a firm or one of its brands
Brand
A name or image a business gives its product to differentiate from other products in the market
Dynamic markets
Markets that change over time
Market growth
Increase in total market sales from eg 2017 to 2018
Competition
Where rival firms compete for customers
Risk
The possibility of difficulty or loss from a business activity
Uncertainty
Events of which are out of control of the business.
Innovation
New or improved products
Product orientation
Where firms focus their efforts on making a product which they then try to sell
Market orientation
Where firms focus on identifying, anticipating, and satisfying customer requirements
Primary research
Where a firm gathers information for the first time eg by doing a survey
Secondary research
Firms collect old data for a new purpose.
Quantitive research
Involves secondary data to identify facts
Qualitative research
Involves primary research to identify opinions
Market segment
A small section of a market which firms use to create sales
Market segmentation
Process of breaking up a market into sub markets. Each market segment is made up of customers with the same tastes, characteristics, etc.
Market mapping
Process that plots two features of all products in a market.
Competitive advantage
Features a business or product has which customers see as better than competitors.
Product differentiation
When a business successfully distinguishes it’s products from others.
Added value
Is the increase in worth a business creates for a product
Forms of a business
The legal structure of of a business eg sole trader or company
Sole trader
A business owned by one person
Partnership
A business owned and run by 2-20 people
Private limited company
A company where shares cannot be advertised or sold without permission of shareholders
Public limited company
A company where shares can be advertised and sold without the permission of shareholders
Lifestyle business
A business that aims to generate sufficient profit to support the way of life of the owner
Online business
A business that uses the internet for trading
Social enterprise
Organisations which aim to improve well being rather than profit
Liability
Legal obligation to pay a debt
Limited liability
Means owners responsibility for the debts of a business is restricted to the amount of investment in the firm
Unlimited Liability
Means owners are personally responsible for the debts of a business.
