Business Unit 1.2 Glossary

Biased

Unbalanced or inclined to agree with a particular judgement or idea rather than presenting the evidence fairly.

Competitive market

A market where there are lots of competitors and rivals all trying to attract customers and become the market leader.

Customer needs

Choice, convenience, customer service, price and quality are all customer needs. If businesses are able to meet these needs they are likely to be successful.

Demographics

A breakdown of the market into specific groups according to age and family situation. For example, 16-21 year olds who are single or families with young children

Differentiation

Techniques and methods used by businesses to show that their product is different from other similar products. This can help increase sales, but also allow businesses to charge higher prices.

Gap in the market

An opportunity in the market that has not yet been exploited by other firms or products. Gaps in the market can be found using market mapping.

Market

A place where buyers and sellers come together. A market will consist of consumers, competitors and different distribution channels

Market map

Using variables to plot where different competitors or products are placed within a market. The idea is to identify gaps that can then be exploited with new brands or products. Variables are quite often price, and quality, or luxury verse economy.

Market research

The process of gathering information about the market and customers’ needs and wants in order to help inform business decisions, including product design and marketing.

Market segment

A group of buyers with similar characteristics and buying habits

Primary research

New research that a business undertakes for a specific purpose. Primary research methods include: interview, questionnaire, focus groups and observations

Qualitative data

Information about people’s opinions, judgements and attitudes

Quantitative data

Data that can be expressed as numbers and statistically analysed

Questionnaire

A document containing a series of questions designed to discover information about consumers’ needs and wants.

Reliability

The extent to which data collected from market research could be reproduced on different occasions.

Repeat purchase

Where a new buyer of a product (product trial) buys the product again. The hope being that they may become a loyal customer.

Secondary research

Research and information that already exists that is then used by businesses to help make decisions (desk research). Secondary research methods include; interest searches, past sales data and government reports.

Unique selling point

A feature of a product that is different, and therefore can differentiate it from any other product in the market. For example, the first water-proof smart phone, the only cyclone technology vacuum