Pearson Edexcel Theme 1 Key Terms Flashcards

A symbol, logo or design that is recognisable and distinguishes a product from competitors is known as a __________ .

Brand

The rivalry among sellers trying to achieve goals such as increasing profits, market share, and sales volume is known as __________ .

Competition

A market that is subject to rapid or continuous change is defined as a __________ market.

Dynamic

When businesses produce similar products that appeal to the same group of customers, it is known as __________ competition.

Direct

Different businesses that make or sell products that are not in direct competition but compete for the same customer experience are involved in __________ competition.

Indirect

The creation, development and implementation of a new product, process or service is called __________ .

Innovation

A large unsegmented market where mass appeal products are on sale is called a __________ market.

Mass

A specialist area or subset of the market where consumers have specific needs and wants is called a __________ market.

Niche

Sales volume can be calculated by dividing sales revenue by the __________ .

Selling price

Where questions do not produce findings that give a true reflection of the views of the target audience, they are called __________ questions.

Biased

When the opinion of the interviewer interferes with the judgements of the interviewee, it causes __________ bias.

Interview

A group of people who participate in a discussion as part of market research to give feedback about a product or service is a __________ group.

Focus

When a business's products or services are based around the needs and wants of the customer, it is called market __________ .

Orientation

When a business prioritises a product's design quality or performance rather than meeting customer preferences, it exhibits product __________ .

Orientation

Obtaining data first hand by the business to match its specific needs is known as __________ market research.

Primary

Data collected by another business or organisation but used by the business in question is known as __________ market research.

Secondary

Market research collected relating to the opinions and beliefs of consumers that is not presented numerically is __________ research.

Qualitative

When respondents respond inaccurately to a question for some reason, it is known as __________ bias.

Respondent

The difference between the selling price and the total cost of inputs needed to create a product is known as __________ value.

Added

A feature of a business or its products that enables it to compete effectively with rival producers is a competitive __________ .

Advantage

A two-dimensional diagram that plots products or services in a market using two key variables to spot a gap in the market is market __________ .

Mapping

Products consumed or used together, such as a printer and printer ink, are called __________ goods.

Complementary

Goods that can be bought as an alternative to others but perform the same function are called __________ .

Substitutes

When demand rises or falls at particular times of the year according to seasonal factors, it is called __________ .

Seasonality

The price where supply and demand are equal is known as the __________ price.

Equilibrium

A market situation where demand exceeds supply is called a __________ .

Shortage

A market situation where supply exceeds demand is called a __________ .

Surplus

Basic goods that consumers need to buy, such as food, electricity, and water, are called __________ goods.

Necessity

When consumer incomes increase and there is a decrease in quantity demanded, the product is an __________ good.

Inferior

The combination of factors needed in designing a product including Aesthetics, Function, and Economic Manufacture is the __________ mix.

Design

When a business buys materials that are produced with fair working conditions/pay and minimum impact on the environment, it engages in __________ sourcing.

Ethical

A marketing strategy in which a new name, term, symbol, or design is created for an established brand to develop a new identity is called __________ .

Rebranding

Brands created by the producers of goods and services, such as Kellogg's cornflakes, are known as manufacturer or __________ branding.

Corporate

Products manufactured for wholesalers or retailers by other businesses, such as Tesco Beans, are __________ brand products.

Own

Charging a higher price than competitors because of customer loyalty built up over time is charging a __________ price.

Premium

An organisation's attempt to communicate with interested parties, usually through unpaid media, is called public __________ .

Relations

A feature that differentiates a product from its competitors is known as a USP, which stands for __________ Selling Point.

Unique

Encouraging customers to share information or adverts through existing social media platforms is called __________ marketing.

Viral

A cost-based method for setting prices by adding a mark-up percentage to the cost of the product is __________ pricing.

Cost plus

Setting a low price initially to build market share before switching to a higher price is known as __________ pricing.

Penetration

Setting a low price forcing rivals out of the market, which is illegal in the UK, is called __________ pricing.

Predatory

Setting a high price at the launch of a product to gain the money back from R & D

Price skimming