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Business Studies > Unit 3 Flashcards > Flashcards

Unit 3 Flashcards

1
Q

Market

A

The market is all customers and consumers who are interested in buying a product and have the financial resources to do so

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2
Q

Niche Market

A

A niche market is a small segment of the mass market, for people with specific tastes and similar spending patterns

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3
Q

Market Segmentation

A

Market segmentation is the process of dividing up a mass market into different segments so you can target consumers with similar spending patterns

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4
Q

Primary research

A

The gathering of new information specific to the needs of the business E.g. Questionnaires

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5
Q

Secondary research

A

The use of data that is already in existence E.g. Commercial reports and government data

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6
Q

Brand

A

A name image or symbol that distinguish a product from competitors products

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7
Q

Brand Image

A

The general impression of a product held by consumers

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8
Q

Market skimming

A

Setting a high price for a new product that is unique or very different from any other product on the market

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9
Q

Penetration Pricing

A

Setting a low price to attract customers to buy a new product

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10
Q

Competitive pricing

A

Setting a price similar to that of competitors products which are already established in the market

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11
Q

Price leadership

A

Smaller firms set their price based on the price set by the dominant firm in the industry

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12
Q

Loss leader pricing

A

Setting the price of a small number of products at below cost to attract customers into the outlet in the hope that they will buy other products priced on earn profit

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13
Q

Cost-Plus pricing

A

Setting price by adding a fixed amount to the cost of making or buying the product

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14
Q

Promotional pricing

A

Involved pricing the product as low as possible for a limited period to get consumers to buy. E.g. Loss leader pricing, discounting, Buy one get one free etc

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15
Q

Down-market firms

A

They aim to attract a large number of sales and make a small profit from each sale

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16
Q

Up-market firms

A

They aim to attract a number of sales and make a smaller number of sales and make a large profit from each sale

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17
Q

Demand

A

The number of people who are willing and able to purchase your product, As you increase the price of your product, demand goes down. (Law of demand)

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18
Q

Price elasticity

A

It measures how much the demand for your product changes when you change the price

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19
Q

Sponsorship

A

Payment by a business to have its name or products associated with a particular product

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20
Q

Point of sale

A

The place where a product is sold E.g. a Shop or a website

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21
Q

Channel of distribution

A

The method used to distribute a product from its producer to consumers

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22
Q

Licensing

A

A business in one country permits a firm in a foreign country to produce its branded productsI

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23
Q

international franchising

A

A methods of expansion that new franchises can use to move into new markets and locations

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24
Q

Customer base

A

The group of customers a business sells its products to

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25
Q

Target Market

A

Individuals or organisations identifies by a business as the customers or consumers of its products

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26
Q

Customer

A

An individual or business that buys goods and services from a business

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27
Q

Consumer

A

The final user of a product

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28
Q

Consumer markets

A

Markets for goods and services bought by the final consumer

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29
Q

Industrial markets

A

Markets for goods and services bought by other businesses to use in their production process

30
Q

Business enviroment

A

The combination of internal and external factors that influence the operations of a business

31
Q

Free trade

A

No barriers exist that might prevent trade between different countries

32
Q

Mass marketing

A

Selling the same product to the whole market

33
Q

Market segment

A

A part of the whole market in which consumers have specific characteristics

34
Q

Demographic segmentation

A

Dividing consumers in the market by factors such as age, gender, income, ethnic background and social class

35
Q

Psychographic segmentation

A

Dividing consumers in the market by lifestyles, personalities and attitudes

36
Q

Market research

A

The process of collecting, recording and analysing data about the customers, competitors and market for a product

37
Q

Unique selling point

A

The special feature of a product that sets it apart from competitors products

38
Q

Market orientated

A

Products are developed based on consumer demand as identified by market research

39
Q

Product orientated

A

The firm decides what to produce and then tries to find buyers for the product

40
Q

Quantitative research

A

The collection of numerical data that can be analysed using statistical techniques

41
Q

Qualitative research

A

The collection of information about consumers buying behaviour and their opinions about products

42
Q

Sample

A

A representative sample of the target market selected to take part in market research

43
Q

Marketing mix

A

4 marketing decisions needed for the effective marketing of a product

44
Q

Four Ps

A

The right product at the right price with the right promotion in the right place

45
Q

Product

A

The goods and services produced to satisfy a customer need or want

46
Q

Product life cycle

A

The pattern of sales of a product from introduction to its withdrawal from the market

47
Q

Extension strategies

A

Marketing activities to extend the maturity stage of a product

48
Q

Price

A

The amount paid by the customer to the supplier when buying a good or service

49
Q

Product quality

A

The product meets the needs and expectations of customers

50
Q

Price elasticity of demand

A

Measures by how much demand (sales) for a product changes when there is a change in its price

51
Q

Price inelastic demand

A

The percentage change in demand (sales) is less than the percentage change in price

52
Q

Price elastic demand

A

The percentage change in demand is greater than the percentage change in price

53
Q

Revenue

A

The amount earned by a business from the sale of its products

54
Q

Wholesaler

A

A business that buys products in bulk from producers and then sells them to retailers

55
Q

Retailer

A

Shops an other outlets that sells goods and services to the final consumer

56
Q

Middlemen

A

These are the intermediaries in the channels of distribution, for example wholesalers and retailers

57
Q

Direct Selling

A

The product is sold by the producer directly to the final consumer without the need for any middlemen.

58
Q

Promotion

A

Marketing activities used to communicate with customers and potential customers to inform and persuade them to buy a business’s products

59
Q

Advertising

A

Paid for communication with consumers which uses printed and visual media. The aim is to inform and persuade consumers to buy a product

60
Q

Informative advertising

A

Information about the product communicated to consumers to create product awareness and attract their interest

61
Q

Persuasive advertising

A

Communication with consumers aimed at getting them to buy a firm’s products rather than a competitors product

62
Q

Below the line promotion

A

Promotion that is not paid for communication but uses incentives to encourage consumers to buy

63
Q

Sales promotion

A

Incentives used to encourage short-term increases in sales or repeat purchases

64
Q

Personal selling

A

Sales staff communicate directly with the consumer to achieve a sale form a long-term relationship between firm and consumer

65
Q

Direct mail

A

Also known as ‘mailshots’ printed materials which are sent directly to the addresses

66
Q

Marketing budget

A

The amount of money made available by a business for its marketing activities during a particular period of time

67
Q

E-commerce

A

Use of the internet and other technologies by businesses to market and sell goods and services to customers

68
Q

Marketing strategy

A

A plan to achieve the marketing objectives using a given level of resources

69
Q

Legal controls

A

Laws that control the activity of businesses

70
Q

Barriers to trade

A

Usually taxes, quotas or bans that one country places on the goods of other countries to prevent or increase the cost of them entering that country

71
Q

Domestic market

A

The market for goods and services in the business’s own country

Business Studies (6 decks)

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