Meeting Customer Needs - Edexcel A Level Business

VOCABULARY flashcards based on the Edexcel A Level Business curriculum covering market characteristics, research, segmentation, and positioning.

Market

Any place where buyers and sellers can meet, such as amazon.co.uk or a shopping mall.

Needs

Goods or services considered essential for survival, such as shelter or food.

Wants

Desires that are non-essential, even if consumers consider them to be essential, such as Nike trainers.

Market Research

The process of systematically gathering data from consumers that can be used to influence business decisions.

Mass Markets

Markets where products are aimed at broad segments with less uniqueness, typically involving large-scale production; for example, Kellogg's Corn Flakes.

Niche Markets

Narrow segments of a larger market where products are more specialised and unique, such as gluten-free products.

Market Segments

Groups of consumers who share similar characteristics, such as age or lifestyle.

Economies of Scale

Low average costs achieved through large-scale production, often benefiting businesses in mass markets.

Sales Volume

The physical number of product units sold in a market.

Sales Revenue

The financial value of units sold, calculated using the formula: $\text{Sales Revenue} = \text{price} \times \text{quantity sold}$.

Market Share

The proportion of total sales in a market that a business enjoys, calculated using: $\frac{\text{Sales of a business}}{\text{Total sales in the market}} \times 100$.

Brand

A name, image, or logo protected by law that helps a product or service stand out from its competitors and adds value.

Adding Value

The process by which firms increase the price that the consumer is willing to pay by making the product more desirable.

Dynamic Market

A market subject to rapid or continuous changes, such as the mobile phone market.

Online Retailing

The process of selling products via the internet, providing access to more consumers and 24/7 trading hours.

Product Innovation

The adaptation or improvement of existing products, such as improved video cameras on laptops.

Process Innovation

The adaptation or improvement of existing processes, such as just-in-time stock control.

Market Growth

The measurement of the change in the entire market, expressed as a percentage of the original size.

Direct Competition

When businesses target customers with the same product as their rivals.

Indirect Competition

When firms sell different products but compete for the same consumers' disposable income, such as cinema and theatre companies.

Risk

A potential threat to business success, such as technical failures or cybersecurity threats, which can be measured and prepared for.

Uncertainty

Occurs when outcomes are difficult to predict, such as potential economic recession or changes in interest rates.

Product Orientation

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

Market Orientation

An approach to marketing that focuses on consumer needs and uses research data to design products that meet those needs.

Primary Research

The process of gathering new information directly from consumers using methods such as surveys, interviews, or focus groups.

Secondary Research

The collection and analysis of data that already exists, such as government statistical portals or specialist market reports like Mintel.

Geographic Segmentation

Breaking up a market into groups based on where customers live, work, or spend leisure time.

Behavioural Segmentation

Categorizing consumers based on lifestyle choices, purchase frequency, health/dietary choices, or brand loyalty.

Demographic Segmentation

Breaking up a market into groups based on characteristics such as age, gender, and family circumstances.

Market Positioning

The process of deciding where to position a product in the market regarding price, quality, branding, and customer perception.

Market Mapping

A two-dimensional diagram that illustrates the attributes or characteristics of a product in comparison to its rivals.

Competitive Advantage

Features of a business and its products, such as reliability, design, or quality, that are perceived as superior to rivals.

Product Differentiation

An attempt by a business to distinguish its products from competitors through tangible features or consumer perceptions.