Topic 1 & 2 - The market Flashcards
Enterprise
The process of taking the product/service to market
Entrepreneur
An individual who takes a risk, develops an idea and takes the product to market, in pursuit of profit
Marketing
A management process that involves identifying, anticipating and satisfying customer needs profitably
Marketing objectives
The targets the marketing department must achieve
Marketing strategy
The medium to long term plan for meeting the marketing objectives, delivered through the marketing mix
Mass market
A very large market, in which products with mass appeal are targeted
Niche market
A smaller market, usually within a large market or industry
E - commerce
Conducting business transactions online
Online retailing/ e-tailing
The retail of goods online
Market share
Proportion of sales in a particular market for which one or more businesses are responsible. Expressed as % by value or volume
Brand
The sign, symbol or logo which distinguishes a product from its competition
Product orientation
An approach to business which places the emphasis upon the production process and the product itself
Market orientation
An approach to business which places the needs of consumers at the centre of the decision-making process
Market research
Collection, presentation and analysis of information relating to marketing and the consumption of goods and services
Primary research
Gathering of new info which doesn’t usually exist
Secondary research
Collection of data which already exists
Consumer panels
Groups of customers are asked for their feedback about products over a period of time
Focus groups
Where a number of customers are invited to attend a discussion about a product led by market researchers
Respondents
A person or organisation who answers the questions in a survey
Socio-economic groups
Division of people according to social class
Added value
Offering extra features which may exceed customer expectations
Competitive advantage
An advantage that enables a business to perform better than their rivals in a market
Market maps/ perceptual maps
Typically a 2d diagram that shows two attributes or characteristics of a brand and those of rival brands in the market
Market positioning
The view consumers have about the quality, value for money and image of a product compared to its competitors
Product differentiation
An attempt by a business to distinguish it’s product from a competitors
Reposition
Changing the view consumers have about a product by altering some of its characteristics
USP or Proposition
Aspect or feature of a product which clearly distinguishes it from its rivals
Demand
Quantity of a product bought over a given time period
Demand curve
A line on a graph that shows how much of a good will be bought at different prices
Complementary goods
Goods purchased together because they are consumer together, so demand for one item will change demand the other
Inferior goods
Goods for which demand will fall if income rises
Normal goods
Goods for which demand will increase when income increases or vice-versa
Substitute goods
Goods that can be bought as an alternative to others but perform the same function
Subsidy
A grant given to producers, usually to encourage production of a certain good
Supply
The amount of a product that suppliers make available to the market at any given price in a given time period
Supply curve
A line on a graph that shows how much of a good sellers are prepared to supply at different prices
Price elastic demand
A change in price results in a greater change in demand
Price elasticity of demand
The responsiveness of demand to a change in price
Price inelastic demand
A change in price results in a proportionately smaller change in demand (but greater revenue)
Discretionary expenditure
Non-essential spending or spending that is not automatic
Income elastic demand
A change in income results in a greater change in demand
Income elasticity of demand
Responsiveness of demand to a change in income
Income inelastic demand
A change in income results in a proportionately smaller change in demand
Database
An organised collection of data, stored electronically, with instant access, searching & sorting facilities
Market segment
Part of a whole market, where a particular customer group had similar characteristics
Qualitative research
Collection of date about attitudes, beliefs and intentions
Quantitative research
Collection of data that can be quantified
Sample
A small group of people representing a proportion of the market when carrying out market research
Equilibrium price/market clearing
The price where supply & demand are equal
Excess demand
Where demand is greater than supply at a given price & there are shortages in the market
Excess supply
Where supply is greater than demand, at a given price and there are unsold goods in the market
Total revenue or expenditure
The amount of revenue generated from the sale of goods calculated by price X quantity in a given period
Brand name
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
