Theme 1: Marketing and People

1.1.1 - Brand

A symbol, logo or design that is recognisable and distinguishes a product from competitors

1.1.1 - Competition

The rivalry among sellers trying to achieve goals such as increasing profits, market share, and sales volume

1.1.1 - Competitive market

When there are many rivals selling similar products

1.1.1 - Competitor

A rival business operating in the same market offering similar goods or services

1.1.1 - Direct competition

Businesses produce similar products that appeal to the same group of customers

1.1.1 - Dynamic market

A market that is subject to rapid/continuous change.

1.1.1 - Indirect competition

Different businesses make or sell products that are not in direct competition but compete for the same customer experience e.g. Netflix and the local cinema

1.1.1 - Innovation

The creation, development and implementation of a new product, process or service.

1.1.1 - Market

Where buyers and sellers interact

1.1.1 - Market growth

An increase in demand/sales for a particular product/service

1.1.1 - Market share

The % of the total market a business has in terms of volume or value

1.1.1 - Market size

The total amount of sales/customers in a market measured by value/volume

1.1.1 - Mass market

A large unsegmented market where mass appeal products are on sale

1.1.1 - Niche market

A specialist area of the market/is a subset of the market on which a specific product focuses. It is a smaller segment of a larger market where consumers have specific needs and wants.

1.1.1 - Online retailing

Selling goods and services on the internet

1.1.1 - Product innovation

The development/creation of products not previously available

1.1.1 - Sales volume

The quantity of a good or service sold within a period of time. Calculation Sales revenue/selling price

1.1.1 - Uncertainty

The inability to predict/a lack of knowledge about future events and outcomes/reasons for uncertainty. Is caused by unexpected often external factors outside the business's control, even though sometimes these can be predictable

1.1.2 - Biased questions

Where the questions do not produce findings that give a true reflection of the views of the target audience on the product or service

1.1.2 - Consumer behaviour

How consumers make decisions about how they choose and use products or services

1.1.2 - Databases

An organised collection of data stored electronically with instant access, searching and sorting facilities

1.1.2 - Face-to-face survey

A research method used where the interviewer communicates directly with the respondent using a questionnaire.

1.1.2 - Focus group

A group of people who participate in a discussion as part of market research to give feedback about a product or service

1.1.2 - Government data

Government publications that a business can use such as the census of the population

1.1.2 - Interview bias

Where the opinion of the interviewer interferes with the judgements of the interviewee

1.1.2 - Market orientation

When a business's products/services are based around the needs and wants of the customer.

1.1.2 - Customer needs and wants

The business finds out the needs and wants of the customers and responds to them/meets customer requirements

1.1.2 - Market reports

A document that contains information, stats, research and facts on a chosen field

1.1.2 - Market research

Gathering, presenting and analysing information about products/customers

1.1.2 - Market segmentation

Dividing a whole market into particular customer groups that have similar characteristics

1.1.2 - Market segments

An identifiable group of individuals/a part of the market where consumers share one or more characteristic or need

1.1.2 - Observations

Where market researchers watch the behaviour of customers

1.1.2 - Primary market research

Obtaining data first hand by the business to match the specific needs of the business. It can also be known as field research

1.1.2 - Product orientation

When a business prioritises a product's design quality or performance rather than meeting customer preferences to guide production and marketing decisions

1.1.2 - Qualitative research

Market research collected relating to the opinions and beliefs of consumers. Data not presented numerically.

1.1.2 - Quantitative research data

Numerical information gathered and can be presented and analysed using graphs, charts, table etc

1.1.2 - Respondent bias

When respondents respond inaccurately to a question for some reason

1.1.2 - Sample

A small group of people who must represent a proportion of a total market when carrying out market research

1.1.2 - Secondary market research

Data collected by another business or organisation but used by the business in question. Also known as desk research

1.1.2 - Segmentation

Dividing the market into groups of people with similar attributes or common characteristics

1.1.2 - Social networking

A platform such as Facebook, X and You Tube, which can be used to market a businesses products/services

1.1.2 - Survey

A method of (primary) research used to collect information

1.1.2 - Test marketing

Trialling the product in a small area or to a limited number of users to assess the suitability of a product

1.1.2 - Trade publications

Specialist magazines that look at current trends in the business world

1.1.3 - Added value

The increase in value that a business creates when producing a product/service. The difference between the price the customer pays and the total cost of inputs needed to create a product

1.1.3 - Competitive advantage

A feature of a business and/or its products that enable it to compete effectively with rival producers/products.

1.1.3 - Differentiation

Making products or services different or distinct from competing products/creating a USP

1.1.3 - Market mapping

A form of market positioning. It is the use of a 2-dimensional diagram that plots products or services in a market using two key variables.

1.1.3 - Market positioning

An effort to influence consumer perception of a brand or product, relative to the perception of competing brands or products.

1.1.3 - Product differentiation

The act of distinguishing a product/service from competitors to make it more attractive to a particular target market.

1.2.1 - Complementary goods

Products consumed/used together, so they are purchased together E.g. printer and printer ink.

1.2.1 - Consumer income

The money earned/received from work/investments.

1.2.1 - Demand

The quantity of goods/services that a consumer is willing to buy at a given price and at a given time.

1.2.1 - Demographics

The structure of the population such as age, gender and geographical distribution.

1.2.1 - External shocks

Factors beyond the control of a business.

1.2.1 - Seasonality

When demand rises or falls at particular times of the year according to seasonal factors.

1.2.1 - Substitutes

Goods that can be bought as an alternative to others, but perform the same function E.g. petrol car and electric car.

1.2.2 - Government subsidies

A payment given to producers, usually to encourage production of a certain good.

1.2.2 - Indirect taxes

Taxes imposed by the government on spending e.g. VAT and Excise duties. Responsibility for payment lies with the business.

1.2.2 - Supply

The amount that producers are willing/able to produce at a given price/over a given period of time.

1.2.3 - Equilibrium price

The price where supply and demand are equal. Also known as market clearing price.

1.2.3 - Non price factors

Factors other than price e.g. Change in consumer incomes, advertising and seasonality.

1.2.3 - Shortage in markets

Where demand exceeds supply.

1.2.3 - Surplus in markets

Where supply exceeds demand.

1.2.4 - Luxury

Goods that consumers like to buy if they can afford them e.g. air travel and fashion items.

1.2.4 - Necessity

Basic goods that consumers need to buy e.g. food, electricity and water.

1.2.4 - Price elastic

Quantity demand is responsive to a change in price.

1.2.4 - Price elasticity of demand (PED)

Measures the responsiveness of quantity demanded to a change in price. Always negative due to laws of demand.

1.2.4 - Price Inelastic

Quantity demanded for the product is less responsive proportionately to a change in price.

1.2.5 - Income elasticity of demand (YED)

Measures the responsiveness of changes in quantity demanded to changes in consumer income.

1.2.5 - Inferior good

When incomes increase there is a decrease in quantity demanded e.g. budget goods.

1.3.1 - Marketing mix

A plan for using the right blend of product, price, promotion, and place in order to maximise sales.

1.3.1 - Social trends

Changing patterns in consumer behaviour reflected in changing demands e.g. increased use of social media/being environmentally friendly.

1.3.1 - Aesthetics

Relates to the appearance of a product.

1.3.1 - Cost (design mix)

When the business focusses on being economically viable, therefore they aim to minimise costs.

1.3.1 - Design for recycling

Producing products using materials that have been discarded as waste and recycled.

1.3.1 - Design for reuse

When a product is designed to allow for disassembly at the end of its life and the re-use of the materials.

1.3.1 - Design for waste minimisation

Reducing the quantity of resources that are discarded in the production process

1.3.1 - Design Mix

The combination of elements, (function, aesthetics, cost) that a business considers when creating a product

1.3.1 - Ethical sourcing

When a business buys materials that are produced with fair working conditions/pay and minimum impact on the environment

1.3.1 - Function

Relates to the quality and reliability of a product.

1.3.1 - Re Branding

A marketing strategy in which a new name, term, symbol, design or combination is created for an established brand with the intention of developing a new, differentiated identity in the minds of consumers, investors, and/or competitors.

1.3.1 - Resource depletion

The using up of natural resources

1.3.2 - Advertising

A paid form of communication, used by a business to raise customer awareness of its products, services and brands, to persuade purchases to be made

1.3.2 - Customer loyalty

Customers favouring a business over competitors when making a purchase/favour it over competitors in the same market.

1.3.2 - Digital communications

The electronic transfer of data

1.3.2 - Direct marketing

Where a business mails out leaflets or letters to households

1.3.2 - Emotional branding

The creation of brands that may appeal to customers' emotional nature, rather than their logical side.

1.3.2 - Manufacture/corporate branding

Brands created by the producers of goods and services e.g. Kellogg's cornflakes (bear the producers name)

1.3.2 - Own brand

Products that are manufactured for wholesalers or retailers by other businesses e.g. Tesco Beans

1.3.2 - Personal selling

Direct communication between a salesperson and the customer

1.3.2 - Premium price

Charging a higher price than competitors because of customer loyalty that has been built up over a period of time

1.3.2 - Product branding/Generic branding

The way a business creates demand/awareness for its product/service.

1.3.2 - Promotion

A way of making customers aware of the brand/business and persuading them to buy products e.g advertising/discounts

1.3.2 - Public relations

An organisation's attempt to communicate with interested parties, usually through unpaid media such as press conferences

1.3.2 - Sales promotions

Methods of promoting products in the short term to boost sales

1.3.2 - Social media

Websites and applications that enable users to participate in social networking.

1.3.2 - Sponsorship

A form of promotion in which funds are provided for a sporting, cultural, or social event in return for prominent display of the business's brand name or image.

1.3.2 - USP

A feature that makes a product stand out from the competition

1.3.2 - Viral marketing

Encouraging customers to share information/adverts through existing social media platforms e.g. Facebook