Theme 1/4 - all definitions Flashcards
Define markets
Places where buyers and sellers come together to exchange goods and services
Define marketing
Identifying, anticipating and satisfying customer needs profitably
Define mass market
Business focuses on majority of the market
Define niche market
Business focuses on specific segment of the market
Define market size
Measurement of market scale using volume and value
Define market growth
Amount a market increases / decreases over a period of time
Define market share
% of a markets total sales earned by a particular company
Define dynamic market
One that is in a rapidly changing business environment
Define direct competition
Competitors who produce the same type of goods as rivals
What is indirect competition
Competitors who produce substitute goods to their rivals
Define uncertainty
Unexpected events that have a dramatic effect on markets
Define risk
Something that can be planned for when probabilities of outcome are known
Define market orientation
The consumer is the most important factor when providing for a market
Define product orientation
The product is the most important factor when providing for a market
Define market segmentation
Identifiable part of a market where consumers share characteristics and needs
Define market mapping
Using a graph to understand competitor behaviour and spot gaps in market
Define competitive advantage
A way to make products or services appear superior to its competition
Define added value
Difference between price charged and cost required to create
Define product differentiation
How a business differentiates products
Define demand
Quantity of a good that consumers are willing and able to purchase
Define substitute goods
Products that can be used in place of each other
Define complementary goods
Products that need to be used together
Define demographics
The statistical data relating to population
Define supply
Amount of a good or service a producer is willing and able to make at a given price
Define PED
Measures responsiveness of demand to changes in price
Define a price elastic product
Change in price leads to significant change in demand (whole numbers)
Define a price inelastic product
A change in price causes a smaller change in demand (decimal numbers)
Define YED
Measures responsiveness of demand to changes in income
Define an income elastic product
Demand is sensitive to income change, e.g Rolex - luxury good. Greater than +1 YED
Define an income inelastic product
As incomes rise product sees little to no shift in demand, e.g milk - necessity. Greater than 0 but less than +1 YED
Define an inferior good of YED
As incomes rise product sees demand decrease, e.g Tesco foods. Less than 0 YED
What are the 4 Ps of the marketing mix
Product, price, place, promotion
What is the design mix
Part of product (from 4 Ps), consists of costs, aesthetics, function
What does the function element of the design mix refer to
The way a product works and does what it needs to do
What does the cost element of the design mix refer to
If the design allows the product to be made and sold profitably
What does the aesthetics element of the design mix refer to
How the product appeals to the customer off looks, how it feels etc
What is sustainability
Making a product without affecting the long term supplies of the raw materials
What is ethical sourcing
Buying from sustainable sources e.g trees from replanting suppliers
What is above the line advertising
Advertising to a mass audience
What is below the line advertising
Personal advertising to niche markets
What is personal selling
Sales people who act personally with customers on behalf of the business
