Topic 1 & 2 - The market

Question 1

Enterprise

Answer 1

The process of taking the product/service to market

Question 2

Entrepreneur

Answer 2

An individual who takes a risk, develops an idea and takes the product to market, in pursuit of profit

Question 3

Marketing

Answer 3

A management process that involves identifying, anticipating and satisfying customer needs profitably

Question 4

Marketing objectives

Answer 4

The targets the marketing department must achieve

Question 5

Marketing strategy

Answer 5

The medium to long term plan for meeting the marketing objectives, delivered through the marketing mix

Question 6

Mass market

Answer 6

A very large market, in which products with mass appeal are targeted

Question 7

Niche market

Answer 7

A smaller market, usually within a large market or industry

Question 8

E - commerce

Answer 8

Conducting business transactions online

Question 8

Online retailing/ e-tailing

Answer 8

The retail of goods online

Question 9

Market share

Answer 9

Proportion of sales in a particular market for which one or more businesses are responsible. Expressed as % by value or volume

Question 10

Brand

Answer 10

The sign, symbol or logo which distinguishes a product from its competition

Question 11

Product orientation

Answer 11

An approach to business which places the emphasis upon the production process and the product itself

Question 12

Market orientation

Answer 12

An approach to business which places the needs of consumers at the centre of the decision-making process

Question 13

Market research

Answer 13

Collection, presentation and analysis of information relating to marketing and the consumption of goods and services

Question 14

Primary research

Answer 14

Gathering of new info which doesn’t usually exist

Question 15

Secondary research

Answer 15

Collection of data which already exists

Question 16

Consumer panels

Answer 16

Groups of customers are asked for their feedback about products over a period of time

Question 17

Focus groups

Answer 17

Where a number of customers are invited to attend a discussion about a product led by market researchers

Question 18

Respondents

Answer 18

A person or organisation who answers the questions in a survey

Question 19

Socio-economic groups

Answer 19

Division of people according to social class

Question 20

Added value

Answer 20

Offering extra features which may exceed customer expectations

Question 21

Competitive advantage

Answer 21

An advantage that enables a business to perform better than their rivals in a market

Question 22

Market maps/ perceptual maps

Answer 22

Typically a 2d diagram that shows two attributes or characteristics of a brand and those of rival brands in the market

Question 23

Market positioning

Answer 23

The view consumers have about the quality, value for money and image of a product compared to its competitors

Question 24

Product differentiation

Answer 24

An attempt by a business to distinguish it's product from a competitors

Question 25

Reposition

Answer 25

Changing the view consumers have about a product by altering some of its characteristics

Question 26

USP or Proposition

Answer 26

Aspect or feature of a product which clearly distinguishes it from its rivals

Question 27

Demand

Answer 27

Quantity of a product bought over a given time period

Question 28

Demand curve

Answer 28

A line on a graph that shows how much of a good will be bought at different prices

Question 29

Complementary goods

Answer 29

Goods purchased together because they are consumer together, so demand for one item will change demand the other

Question 30

Inferior goods

Answer 30

Goods for which demand will fall if income rises

Question 31

Normal goods

Answer 31

Goods for which demand will increase when income increases or vice-versa

Question 32

Substitute goods

Answer 32

Goods that can be bought as an alternative to others but perform the same function

Question 33

Subsidy

Answer 33

A grant given to producers, usually to encourage production of a certain good

Question 34

Supply

Answer 34

The amount of a product that suppliers make available to the market at any given price in a given time period

Question 35

Supply curve

Answer 35

A line on a graph that shows how much of a good sellers are prepared to supply at different prices

Question 36

Price elastic demand

Answer 36

A change in price results in a greater change in demand

Question 37

Price elasticity of demand

Answer 37

The responsiveness of demand to a change in price

Question 38

Price inelastic demand

Answer 38

A change in price results in a proportionately smaller change in demand (but greater revenue)

Question 39

Discretionary expenditure

Answer 39

Non-essential spending or spending that is not automatic

Question 40

Income elastic demand

Answer 40

A change in income results in a greater change in demand

Question 41

Income elasticity of demand

Answer 41

Responsiveness of demand to a change in income

Question 42

Income inelastic demand

Answer 42

A change in income results in a proportionately smaller change in demand

Question 43

Database

Answer 43

An organised collection of data, stored electronically, with instant access, searching & sorting facilities

Question 44

Market segment

Answer 44

Part of a whole market, where a particular customer group had similar characteristics

Question 45

Qualitative research

Answer 45

Collection of date about attitudes, beliefs and intentions

Question 46

Quantitative research

Answer 46

Collection of data that can be quantified

Question 47

Sample

Answer 47

A small group of people representing a proportion of the market when carrying out market research

Question 48

Equilibrium price/market clearing

Answer 48

The price where supply & demand are equal

Question 49

Excess demand

Answer 49

Where demand is greater than supply at a given price & there are shortages in the market

Question 50

Excess supply

Answer 50

Where supply is greater than demand, at a given price and there are unsold goods in the market

Question 51

Total revenue or expenditure

Answer 51

The amount of revenue generated from the sale of goods calculated by price X quantity in a given period

Question 52

Brand name

Answer 52

A name, term, sign, symbol, design or any other feature that allows consumers to identify the goods and services of a business and to differentiate them from those of competitors