business a level defintion flashcards theme 1 (unfinished)

1.1 meeting customer needs

Define the term market.

A market is any place where buyers and sellers meet to exchange goods or services.

What is meant by the term market share?

Market share is the proportion of the total market sales a business or brand controls.

What is the aim of marketing?

The aim of marketing is to help identify, anticipate and satisfy consumer needs and wants profitably.

True or False? Wants are considered to be essential.

False. Needs such as shelter or food are considered to be essential, while wants are desires that are non-essential.

Define the term mass market.

A mass market is where products are aimed at broad market segments.

Define the term brand.

A brand is a name, image or logo that helps one product stand out from its competitors.

State the formula for calculating market share.

Formula.

Define the term niche market.

A niche market is one in which the products are aimed at a small subset of consumers in the market.

What is the purpose of branding?

Branding is one of the key ways businesses achieve product or business differentiation.

True or False? A dynamic market is one that is subject to rapid or continuous changes.

True. A dynamic market is one that is subject to rapid or continuous changes.

What is meant by the term primary research?

Primary research is the process of gathering first-hand information directly from consumers in the target market.

What is meant by the term market segmentation?

Market segmentation is the process by which a single market is divided into sub-markets containing consumers with similar characteristics.

Define the term product orientation.

Product orientation is an approach to marketing that focuses on the characteristics of the product rather than the needs of the consumer.

What is meant by the term secondary research?

Secondary research involves the collection, compilation, and analysis of data that already exists.

True or False? Primary research is cheaper and quicker than secondary research.

False. Primary research is usually more expensive and time-consuming than gathering secondary research.

State how researcher bias can affect survey findings.

Researchers may guide respondents to answer questions in a particular way.

What is the purpose of market segmentation?

Market segmentation allows firms to precisely target different groups of consumers.

True or False? Primary market research may include purchasing market reports from specialist companies or accessing government statistics.

False. Secondary market research may include purchasing market reports from specialist companies or accessing government statistics.

Define the term market orientation.

Market orientation is an approach to marketing that focuses on the needs of consumers and uses this information to design products that meet those needs.

What is meant by the term test marketing?

Free samples are provided to consumers in the target market for a limited period to gauge their response to the product.

True or False? All consumers in a market segment behave in the same way.

False. Not everyone within a segment will behave in the same way; they simply share similar characteristics.

Define the term market positioning.

Market positioning refers to product launch decisions such as price, quality, branding and customer perception, which position the product in relation to its competitors.

What is a market map?

A market map is a two-dimensional diagram that shows the attributes or characteristics of a product compared to those of rivals.

True or False? A market map can show more than two criteria.

False. Only two criteria can be chosen for a market map, e.g. price and quality.

What is meant by the term market saturation?

Market saturation exists where most customers who want to buy a product have already done so.

Define the term competitive advantage.

Competitive advantage refers to the features of a business and its products that are perceived as superior to those of its rivals by customers.

What is meant by the term product differentiation?

Product differentiation is an attempt by a business to distinguish its products from those of its competitors.

Give two examples of sources of competitive advantage.

Sources of competitive advantage can include: Quality Delivery times Low price Reliability Ethical stance

Define the term added value.

Added value is the difference between the selling price and the cost of the inputs required to create the product or service.

True or False? Adding value raises costs for a business.

True. Adding value raises costs, but it is worth it if the increase in selling price outweighs the higher costs associated with the method.