Unit 2 Flashcards
Mass Market
When the company widely promotes its product or service, to a mixed audience, instead of targeting specific demographics.
Demographics
Statistics that base and describe people on characteristics, ex; age, race, gender, income
Psychographics
The study of people’s interests, activities and opinions
Direct Competition
When there is another company that produces the same goods, services, or events as your business, it causes competition, ex; coke and Pepsi.
Indirect Competition
When there is another company that produces a product that your customers and consumers would be able to purchase instead of your products, that would be able to subtly replace you, ex; soda stream and coke.
Phantom Competition
Competition where the two types of products aren’t the same type or category but customers could purchase the other product instead of purchasing yours.
Market Size
Total number of customers in an industry.
Market Share
Percentage of how much the company has made, inside the total amount of money the industry has made.
competitive advantage
Having a unique or special product or service that others do not have.
Price competition
When businesses compete with one another by lowering the price of their products, to gain customers.
Non- price competition
When businesses compete with one another in anything else besides price, this could include, better quality, better deals/promotions or using celebrities to promote their business.
Secondary data
Information you buy off a second source, the work is usually already done for you.
Primary data
Information you get right from the source
(usually more expensive)
experimentation
to test or find information out by conducting procedures
Observation
Watching or recording others and things to document and collect data about them.
