CCEA Business Studies AS Unit 2

Market Share

This represents the percentage of an industrys total sales that a particular company has earned over a period of time.

Market Growth

This represents an increase in demand for the industry's product/service over a period of time.

Market Size

This refers to the volume/value of sales generated by individual firms who make up the industry as a whole.

Monopoly

A market structure in which only one firm supplies the entire output, there is no competition and there are barriers to entry.

Oligopoly

A market structure that has a small number of firms who dominate the market by producing heavily branded products. There are some barriers to entry.

Perfect Competition

A market structure where there is perfect knowledge, many buyers and sellers, freedom of entry and exit and a homogeneous product.

Office of Fair Trading

A Government body that has responsibility for overseeing all policy relating to competition and consumer protection. It can refer specific cases to the Competition Commission for investigation.

Competition Commission

It will investigate and report on any monopoly, proposed merger or anti-competitive practices that are referred to it by the Office of Fair Trading or Regulators of privatised industries that are deemed not the be in consumer's interests.

Regulators of Private Utilities

Agencies set up to regulate prices in the provision of water, gas, electricity etc to the general public.

Marketing Research

The collection, collation and analysis of data relating to the marketing and consumption of goods and services.

Primary Research

Information collected by a business through field search e.g. survey. It involves the collection of data that does not already exist.

Secondary Research

Using existing sources of information to research the market e.g. past sales data.

Focus Groups

A range of individuals who are deemed to be representative of the customers in a particular segment who are brought together to answer and discuss questions prepared by market researchers.

Consumer Panels

A group of consumers who are consulted about their views on a particular product over a period of time.

Test Marketing

Selling a product in a restricted section of the market in order to assess consumers reaction to it.

Surveys

These are used to obtain views about a firms product/service from existing or potential customers. The data can be collected via telephone, online and postal questionnaires.

Observation

Watching and recording how people react to the firms product/service displays and interact with staff without their knowledge.

Questionnaire

A range of questions designed by the business to collect both quantitative and qualitative from consumers about their products/services.

Store Loyalty Cards

Given to customers as a reward for shopping in a particular store. The data collected provides the business with an opportunity to identify the spending patterns of consumers leading to targeted promotions that will increase sales.

Sample

A group of consumers selected from the population.

Random Sample

Everyone is given an equal chance of being chosen.

Cluster Sample

The population is divided into 'clusters' usually geographic areas and then a random sample is chosen.

Quota Sample

The population is segmented into a number of groups who share specific characteristics e.g. age, gender. Interviewers are given targets for the number out of each segment.

Stratified Sample

The population is divided into mutually exclusively strata or layers with random sampling taking place within each stratum.

Quantitative Research Data

Data collected by the organization which can be analysed and easily presented in tables and charts. This data can provide answers to questions such as 'how many', 'who' and 'how often'.

Qualitative Research Data

Data collected by an organisation which helps them to choose a particular strategy. This data provides answers to questions such as 'why' or 'how' potential consumers react to specific goods/services.

Marketing Mix

The elements of an organisation's marketing plan that are designed to meet the needs of its customers.

Price

The amount charged by the business for providing a product to the consumer.

Product

This represents the nature of the item provided by the business to the consumer.

Promotion

The efforts made by the business to retain and attract consumers by drawing attention to its product.

Place

The means by which the product will be distributed at a time and location convenient to the consumer.

People

The behavior and attitude of staff who determine the level of customer satisfaction in business transactions.

Processes

The systems employed by the firm to ensure their services are successfully delivered to customers.

Physical Environment

This applies to the store, office and company website where business transactions occur.

E-Commerce

The selling, marketing and servicing of product or services over electronic system such as the internet.

Price Elasticity of Demand

A measure used to show the responsiveness, or elasticity, of the quantity demanded of a product/service to a change in its price.

Income Elasticity of Demand

A measure used to show the responsiveness, or elasticity, of the quantity demanded of a product/service to a change in consumer income.

Product Life Cycle

This shows the different stages in the life of a product and the sales that can be expected at each stage.

Extension Strategies

The methods used by a business to extend the life of a product.

Product Portfolio

The particular mix of products which a firm is marketing.

Market Positioning

The perception that consumers have of the quality, value for money and image of the product relative to those of competitors.

Market Segmentation

Breaking down a market into sub-groups which share similar characteristics e.g. age, gender, income.

SWOT

Assessment of the internal strengths and weaknesses of a business and the external opportunities and threats that the business needs to consider.

E-Business

This refers to business activity conducted using online information system and applications.

Digital Marketing

This is an umbrella term used to describe the marketing of products/services via mobile technology and the internet.

Social Media

This refers to a range of online communication channels that provides opportunities for individual and community interaction, collaboration and sharing of information.

Mobile Technology

This technology is portable and used by businesses to promote products/services via electronic channels.

Mobile Ticketing

A process that allows customers to order, pay for or validate tickets by using their mobile phones or other mobile handsets.

Mobile Marketing

This is a form of advertising/promotion delivered to consumers via a mobile/smart phones and other handheld devices. It can be in the form of text, images and voice messages.

Internal Source of Finance

These are funds available from within the business e.g. retained profit and money gained from selling assets no longer used in the firm.

External Source of Finance

These are funds available from outside the business e.g. loan, overdraft, hire purchase, leasing, trade credit, mortgage.