IBDP1_BM_Unit_4_Key_definitions (1)

Market

Any place where buyers and sellers can meet to conclude a transaction.

Marketing

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

Needs

Essential requirements for survival, such as shelter or food.

Wants

Desires which are non-essential, even if consumers consider them to be essential.

Market Research

The process of systematically gathering data from consumers, used to influence business decisions.

Product Orientation

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

Market Orientation

An approach that focuses on consumer needs and uses this information to design products.

Market Share

The proportion of total sales of a product/service that a business enjoys in relation to the market as a whole.

Market Growth

The increase in the overall size, value, or volume of a market over a period of time.

Niche Markets

Markets aimed at a subset of the larger market, focusing on specific consumer demands.

Mass Markets

Markets aimed at broad market segments, selling products to most of the available market.

Market Leadership

A business's ability to maintain the largest share of a specific market or industry.

Oligopolies

Markets dominated by a small number of large businesses that control a large proportion of market share.

Market Concentration

Measures how competitive a market is based on the distribution of market share.

Brand Recognition

The level of awareness customers have regarding a brand, often a key advantage for market leaders.

Economies of Scale

Cost advantages that businesses obtain due to the scale of their operations.

Innovation and Resources

The ability of market leaders to invest in research and development to stay ahead of competitors.

Distribution Channels

The system of moving products from producers to consumers.

Market Segmentation

Dividing a single market into smaller sub-markets or segments with different consumer characteristics.

Unique Selling Point (USP)

A distinguishing factor or characteristic that sets a product apart from its competitors.

Product Differentiation

The process of distinguishing a product from others to make it more attractive.

Primary Market Research

Gathering information directly from consumers in the target market.

Secondary Market Research

The analysis of existing data that has already been collected by others.

Surveys

A primary research method that gathers data through asking questions to a sample of people.

Observation

A method of gathering data by observing consumer behavior in a natural setting.

Interviews

One-on-one discussions with consumers to gather detailed opinions and perceptions.

Test Marketing

Introducing a product on a limited basis to gauge consumer response before a full launch.

Focus Groups

Guided discussions with a small group of consumers to gather feedback on a marketing mix.

Market Mapping

A tool for identifying the position of a product within a market using specific criteria.

Price Skimming

Setting a high price initially and then lowering it over time as competition increases.

Penetration Pricing

Setting a low initial price for a product to attract a large number of customers quickly.

Extension Strategies

Techniques used to prolong the life of a product beyond its natural life cycle.

Product Improvements

Making modifications to existing products to enhance their appeal to customers.

Line Extensions

Introducing new variations of an existing product to reach a broader market.

Repositioning

Altering the perception of a product in the minds of consumers.

Sales Revenue

The income generated from sales of goods or services.

Promotional Pricing

Temporary price reductions to stimulate demand.

Cash Flow

The total amount of money being transferred into and out of a business.

Customer Focus

Placing consumer needs and preferences at the center of marketing strategies.

Competitive Advantage

Attributes that allow a business to outperform its competitors.

Physical Evidence

The tangible aspects that support a service or product, such as branding.