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Business Y12 > Theme 1 > Flashcards

Theme 1 Flashcards

1
Q

What is a market?

A

Any place where customers and suppliers meet to trade products

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2
Q

What is a mass market?

A

The general market aimed at the general population

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3
Q

What is a niche market?

A

A subset of the market aimed at more specialist needs

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4
Q

Define homogeneous

A

The same kind/ alike

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5
Q

How can market size be calculated

A

Volume of sales or Value

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6
Q

How do you calculate market share

A

sales of business/total sales in market (x100)

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7
Q

What is a dynamic market?

A

A market that’s subject to constant change

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8
Q

How can markets change (and the acronym to remember)

A

Political
Economic
Social
Technological
Legal
Environmental
PESTLE

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9
Q

What is the difference between risk and uncertainty?

A

Risk- potential outcomes are known. Uncertainty-potential outcomes aren’t known

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10
Q

What is product orientation?

A

When a business focuses on the product itself and puts maximum effort into it’s quality.

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11
Q

What is market orientation?

A

When the consumer is priority and their needs are the main focus

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12
Q

What is market segmentation?

A

The market is split into different groups to correctly target customers

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13
Q

Define Product Orientation

A

The product is the most important factor when providing products for a market. A product oriented company put in maximum effort on producing quality products and fixing them at the right price

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14
Q

Define Market Orientation

A

The consumer is the most important factor when providing products for the market, the business has a sensitivity to customers requirements and researches what customers want and need

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15
Q

Advantages of product orientation

A

*Economies of scale, efficiency, low cost to customers
*Focus on quality, innovation, skills development/outsourcing.

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16
Q

Disadvantages of product orientation

A

*Disregards customer needs, set-up costs are usually high.
*Potential missed market opportunities, obsolescence.

17
Q

Advantages of market orientation

A

*Attracts customers
*Builds customer loyalty

18
Q

Disadvantages of market orientation

A

*Perils of following trends
*Higher research costs

19
Q

Benefits of market research?

A

*For decision making, reduces risk and cost of making poor decisions
*To develop a marketing plan based on data gathered about the 4Ps
*To react to and prepare for changes in the market

20
Q

What is market mapping?

A

The process of finding the variables which differentiate brands in a market and then plotting them on a map – to identify a gap in the market

21
Q

What are the uses of market mapping?

A

*It could be used to identify a gap in the market
*It could also be used by a start-up to identify which products to produce or which services to provide – so they can be market orientated (not product orientated)
*It could also be used by a traditional brand to reposition itself in the market

22
Q

Who thought of the idea of competitive advantage

A

Michael Porter- 1960s

23
Q

What are the 9 mains ways a business can gain a competitive advantage?

A

*Price leadership
*Added value
*Innovation
*Reliability
*Quality
*Advertising
*Branding
*Convenience
*Customer service

24
Q

What is product differentiation?

A

Where a product is different from the competition in some way

25
Q

What are the methods of differentiation?

A

*Reputation
*Customer service/ after sales service
*Value for money
*Product features

26
Q

What is added value?

A

The amount by which the monetary value of an product or service increased at each stage of its production

27
Q

Three methods businesses can use to add value

A

*Design
*Production
*Marketing

28
Q

Benefits of adding value

A

*The more value that is added, the higher the price that can be charged, which means higher profit margins
*Protection against competitors offering lower prices which means competitive advantage
*Customer loyalty which means repeat business

29
Q

Difference between a communist market and a free market

A

C- Governments decides what everyone needs and how it’s allocated
F- Supplied according to demand

30
Q

Define complementary goods

A

Goods that customers usually purchase together

31
Q

Define substitutes goods

A

Goods that can be bought in placement of each other

32
Q

What are external shocks?

A

Any factor that effects a business outside of it’s control

33
Q

Define Market Equilibrium

A

The price of the product matches exactly the wants of the consumers and the producers

Business Y12 (3 decks)

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