Theme 1 Business Alevel Key Terms

THEME 1.1 - Market

A place where buyers and sellers meet to trade goods and services, either physically or virtually

Mass Market

A large market with products aimed at the general population. It typically involves standardized products and an emphasis on volume sales at lower prices.

Niche Market

A small, specialized market segment of the larger mass market with specific customer needs, often overlooked by larger competitors.

Market Size

The total sales volume or value of a particular market

Market Share

The percentage of total market sales held by one firm or product

Branding

Creating a unique name, design, or symbol that differentiates a product from competitors

Dynamic market

A market that is constantly changing due to trends, consumer preferences, or technological advancements.

Innovation

the process of introducing new ideas to a market, products, or methods that improve efficiency or meet consumer needs.

Risk

The potential for loss or failure when making a business decision

Uncertainty

The inability to predict future events or market changes.

THEME 1.2 - Market Research

The process of gathering, analyzing, and interpreting information about a market.

Primary Research

The collection of original data directly from sources through methods such as surveys, interviews, or observations.

Secondary Research

The collection of existing data that has already been gathered and published by others, such as reports, studies, and online databases.

Qualitative Research

A method of research focused on understanding human behavior, experiences, and motivations.

Quantitive Research

A method of research that focuses on quantifying data and using statistical analysis to identify patterns, preferences, and trends.

Sampling

The process of selecting a subset of individuals from a population to gather insights and draw conclusions about the entire group.

Bias

When results are influenced by personal or external factors, making them unreliable.

Market Segmentation

The process of dividing a broad target market into subsets of consumers who have common needs or preferences.

THEME 1.3 - Market Mapping

A visual representation that demonstrates the positioning of products or brands within a market based on various characteristics.

Competitive Advantage

A feature or benefit of a product or service that gives it superiority over competitors.This can include aspects such as cost, quality, or unique attributes that appeal to consumers.

Differentiation

Making a product or service distinct from competitors in the market.

Adding Value

The extra value created for a product above its raw material cost, achieved through branding, design, or quality.

THEME 1.4 - Demand

The quantity of a product or service consumers are willing and able to buy at a given price

Factors affecting demand

• Availability of substitutes

• Consumer incomes

• Fashions, tastes and preferences

• Advertising and branding

• Demographics

• External shocks

• Seasonality

Supply

The quantity of a product or service producers are willing to sell at a given price.

Factors affecting Supply

• Cost of production

• Introduction of new technology

• Indirect taxes

• Government subsidies

• External shocks

Equilibruim price

The price at which supply equals demand.

PED

Price Elasticity of Demand, a measure of the responsivenes of the markets demand to a change in price

YED

Income Elasticity of Demand, a measure of the responsivenes of the markets demand to a change in consumer income

THEME 1.5 - Market Mapping, the 4 Ps

Product, Price, Place, Promotion – the tools businesses use to market products

Product differention

Features that make a product stand out from competitors.This can include aspects like quality, design, and branding.

Pricing Stategies

Penetration Pricing: Setting a low price to gain market share quickly

Promotion

Methods used to inform, persuade, and remind customers about products

Place

How products are distributed and delivered to customers

Product life cycle

Stages a product goes through from introduction to decline (Introduction, Growth, Maturity, Decline).

Boston Matrix

A tool for analyzing product portfolios and help what to invest in (Stars, Question Marks, Cash Cows, Dogs).

THEME 1.6 - Euntrepreneurs

An individual who creates and develops a business, taking risks for potential reward

Intrepreneurs

An employee who innovates and takes risks within an organization

Business objectives

Specific goals a business aims to achieve, e.g., profit maximization, survival, or growth

Leadership styles

Different approaches to providing direction and motivating people within an organization, including autocratic, democratic, and laissez-faire styles.

Autocratic Leadership

A leadership style characterized by individual control over all decisions with little input from team members. The leader typically makes choices based on their own ideas and judgments.

Democratic Leadership

A leadership style that encourages group participation in decision-making, where the leader promotes collaboration and values team input.

Laizzes Faire

A leadership style where the leader provides minimal direction and allows team members to make decisions, fostering independence and self-management.

Oppurtunity cost

What oppurtunities a business looses out on when choosing one option over another, reflecting the potential benefits that are foregone.