Theme 1 Flashcards
Indirect taxes
Taxes on goods and services rather than on income or profits e.g cigarettes
Emotional branding
Creating a brand that directly appeals to the customers emotional state e.g Nike
Intrapreneurship
People within a business creating/discovering new business opportunities which leads to a higher level of innovation
Profit maximisation
Making as much profit as possible by determining the price and output level that returns the greatest profit
Profit satisficing
Making enough profit to keep shareholders happy
Lifestyle business
Where the aim is to sustain a particular level of income and no more in order to enjoy a particular lifestyle
Government subsidies
Any support given by the government (non financial or financial) to a producer or sometimes a consumer e.g to provide more jobs in an area
Ethical sourcing
Where a business only buys products that are produced with fair working conditions and pay for workers, as well as minimalising the impact on the environment
Niche marketing
A smaller segment of a larger market, where customers have specific needs and wants requiring differentiated products
Mass marketing
The largest part of the market, where there are many similar undifferentiated products offered by competitors
Market size
The overall size or demand for a specific market
Market growth
The percentage rate of growth in market size over a period
Market share
The proportion of market size held by each competitor in a market
Dynamic market
Market that is constantly changing e.g film industry
Competitive advantage
The ability of a business to add more value for its customers than its rivals and attain a position of relative advantage
Product orientation
Business develops products based on what it is good at doing
Market orientation
Business responds to customer needs and wants - designs products accordingly
Test marketing
Selling a new product in a small section of the market in order to assess customer reaction
Sampling
The gathering of data from a sample of respondents, the results which should be representative of the population as a whole
Data mining
An example of secondary research that relies on data that is already there
Marketing research
Collection of data to obtain insight and knowledge into the needs and wants of customers and the structure and dynamics of a market
Primary data
Research data collected first hand for a specific purpose
Secondary data
Existing research data that has been collected and analysed for a different purpose
Quantitative research
Research based on numerical data
Qualitative data
Research based on views and opinions
Market positioning
The place a product occupies in customer minds relative to competing products
Product differentiation
Where a product has a value proposition that is sustainably different from the competition
Adding value
Increasing the worth of a product or service
Market mapping
A diagram that identifies all the products in the market using two key features
