1.1 - Meeting Customer Needs

Vocabulary flashcards covering key business terms from Edexcel A Level Business Topic 1.1 Meeting Customer Needs.

Market

Any place where buyers and sellers can meet, such as amazon.co.uk or a shopping mall.

Needs

Essential items required for survival, such as shelter or food.

Wants

Consumer desires that are non-essential, even if consumers consider them to be essential, such as Nike trainers.

Market Research

The process of systematically gathering data from consumers that can be used to influence business decisions.

Mass Market

A market where products are aimed at broad market segments, characterized by large-scale production and lower average costs.

Niche Market

A market where specialized and unique products are aimed at a subset or narrow segment of the larger market.

Market Segments

Groups of consumers who share similar characteristics, such as age or lifestyle.

Mass Marketing

An approach where businesses sell their products to most of the available market on a large scale.

Niche Marketing

An approach where businesses identify and satisfy the demands of a small group of consumers within the wider market.

Sales Volume

The physical number of units or products sold by a business.

Sales Revenue

The financial value of units sold, calculated as $\text{Sales revenue} = \text{price} \times \text{quantity sold}$.

Market Share

The proportion of total sales of a product or service compared to the market as a whole, calculated as $\frac{\text{Sales of a business}}{\text{Total sales in the market}} \times 100$.

Brand

A name, image, or logo that helps a product or service stand out from its competitors and is protected by law.

Dynamic Market

A market that is subject to rapid or continuous changes in consumer tastes, technology, or competition.

Online Retailing

The process of selling products via the internet, allowing 24/7 access to consumers globally.

Direct Competition

Competition that occurs when a business targets customers with the same product as a competitor.

Indirect Competition

Competition that occurs when firms sell different products but compete with each other for customers' disposable income.

Product Innovation

The adaptation or improvement of existing products, such as improved video cameras on laptops.

Process Innovation

The adaptation or improvement of existing operational processes, such as just-in-time stock control.

Market Growth

The measurement of the change in the entire market, expressed as a percentage of the original size.

Risk

The potential threat to business success that can be measured and prepared for using risk management.

Uncertainty

A condition in business where future outcomes are difficult to predict.

Product Orientation

An approach to marketing that focuses on the characteristics of the product rather than the needs of the consumer.

Market Orientation

An approach to marketing that focuses on consumer needs and uses that information to design products that satisfy customer demand.

Primary Research

The process of gathering original information directly from consumers in the target market using field research methods.

Secondary Research

The collection, compilation, and analysis of data that already exists from internal or external sources.

Market Segmentation

The process by which a single market is divided into distinct submarkets or segments.

Geographic Segmentation

Breaking up a market into groups of customers who live, work, or spend their leisure time in defined locations.

Behavioural Segmentation

Segmenting a market based on consumer lifestyle choices, dietary choices, purchasing frequency, or brand loyalty.

Demographic Segmentation

Breaking up a market into groups of customers with similar population characteristics, such as age, gender, and family circumstances.

Market Positioning

The process a business goes through when launching a new product or service with regard to price, quality, branding, and customer perception.

Market Mapping

A two-dimensional diagram tool used to show the attributes of a product in comparison to rivals' products using two chosen criteria.

Competitive Advantage

Features of a business and its products that are perceived as superior, distinctive, and defensible compared to its rivals.

Product Differentiation

An attempt by a business to distinguish its products from those of competitors by creating unique features or functions.

Adding Value

The difference between the price charged to the customer and the cost of inputs required to create the product or service.