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Business A-level > Summer Mock Theme 1 > Flashcards

Summer Mock Theme 1 Flashcards

1
Q

What are the 2 main types of market ?

A

Niche and Mass

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2
Q

What is the mass market ?

A

-The mass market is an market when business make products/services for all customers.
-The mass market is larger and the products are more generalised.
-e.g McDonalds

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3
Q

What is the niche market ?

A

-The niche market provides products/services which focus on the customers specific want or need.
-e.g Leon

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4
Q

Name 3 mass market benefits

A

-Having more customers.
-Benefitting from economies of scale (due to higher output levels).
-Can build a strong market presence.

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5
Q

Name 3 mass market disadvantages

A

-Higher levels of competition.
-Lower profit margins

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6
Q

Name 5 niche market benefits

A

-Less competition.
-Specific market.
-Can develop specific expertise.
-Higher profit margins.
-Customer loyalty.

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7
Q

Name 2 niche market disadvantages

A

-No economies of scale.
-Vulnerability because they have an indiverse product portfolio.

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8
Q

What is a brand ?

A

-A brand is a good or service that has something which is unique & recognisable.
-This could be from the way that the product is designed or a different feature.

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9
Q

What can a strong brand lead to ?
Strong brand example.

A

-Higher customer loyalty
-Leading to larger profits
-e.g Nike

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10
Q

Marketing mix definition

A

The plan for getting the blend of product, price, place and promotion

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11
Q

What is a market objective ?

A

A target that a marketing department within a business must acheive.

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12
Q

What is market segmentation ?

A

Dividing a market by customer’s age, gender or income to find areas that are underserved
-e.g bikes for older people

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13
Q

Marketing strategy definition

A

A medium to long plan for meeting the marketing objectives delivered through the marketing mix

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14
Q

What is marketing ?

A

The department tasked with targeting the right product towards the right target market (audience) .

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15
Q

What is a dynamic market ?

A

Dynamic markets are markets that experience rapid and continuous change.

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16
Q

What is product differentiation ?

A

Differentiation is the characteristics that make a business’ product or service stand out to its target audience

17
Q

Market size definition

A

The total amount of sales/customers in a market. Measured by value/volume.

18
Q

Name 2 risks that entrepreneurs may face when starting a business

A

-Financial loss
-Lack of security

19
Q

What is uncertainty ?

A

Uncertainty is when a business cannot know how a situation will turn out

20
Q

What is risk ?

A

Risk is where there is a chance that something could go wrong & not end up as expected.

21
Q

What is market research ?

A

Market research is the process of gathering information about customers, competitors and distributors within a businesses target market.

22
Q

What is primary research ?

A

-Primary research is finding out information first hand.
-e.g a business designing a quiz to obtain knowledge on who buys their products.

23
Q

What is secondary research ?

A

-Secondary research is finding out information that has already been gathered.
-e.g government estimates of the number of cars in the UK

24
Q

Give 2 examples of secondary research

A

-News articles
-Government records

25
Q

Give 2 examples of primary research

A

-Surveys
-Focus Groups

26
Q

What is quantitative research ?

A

A research method that uses mathematical analysis and data to provide information about a business and market.

27
Q

.What is qualitative research ?

A

A research method that is based on the customers opinions, values and beliefs about a business.

28
Q

What is YED ?

A

Income elasticity of demand (YED) measures the responsiveness of quantity demanded to a change in consumer income.

29
Q

YED formula

A

YED = (% change in quantity demanded) ÷ (% change in income)

30
Q

If the YED coefficient is positive an increase in income =

A

an increase in demand

31
Q

If the YED coefficient is negative an increase in income =

A

a decrease in demand

32
Q

If the income elasticity of demand is less than 1 then this is described as ………

A

inelastic (the quantity demanded is less than the change in income)

33
Q

If the income elasticity of demand is more than 1 then this is described as ………

A

elastic (the quantity demanded is more than the change in income)

34
Q

What is an inferior good ?

A

Increase in income = decrease in demand

35
Q

What is a normal good ?

A

Increase in income = increase in demand

36
Q

What is a luxury good ?

A

Increase in income = decrease in demand (more than what is proportional to income)

37
Q

What is economies of scale ?

A

A proportionate saving in costs gained by an increased level of production.

38
Q

What is a subsidy ?

A

A transfer of money from the government to an entity (business)

39
Q

W

A

Business A-level (20 decks)

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