4.1 + 4.2

Concentration ratio

Indicator of the degree of competition in an industry by calculating the sum of the market share held by the largest specified number of firms in the industry.

Market concentration

Measures the degree of competitiveness that exists within a market by calculating the market share of the largest few firms in the industry.

Market growth

Rate at which the size of a market is increasing, typically expressed as the percentage increase in the market size of an industry per year.

Market leadership

Position of a business which has the largest market share in a given market for a particular good or services.

Market orientation

Marketing approach adopted by businesses that are outward looking by focusing on making products that they can sell, rather than selling products they can make.

Market share

Measures an organization's portion of the total value of sales revenue in a specific industry.

Market size

The magnitude of an industry, usually measured in terms of the value of sales revenue from all the businesses in a particular market, per time period.

Marketing

The management process of predicting, identifying and meeting the needs and wants of customers, usually in profitable ways.

Marketing objectives

The specific marketing goals of an organisation, such as increased sales revenue, greater market share and market leadership.

Marketing strategies

The medium- to long-term plan to achieve an organization's marketing objectives.

Product orientation

A marketing approach used by businesses that are inward looking as they focus on selling products that they can make, rather than making products that they can sell.

Consumer profiles

The demographic and psychographic characteristics of consumers in different markets, such as their age, gender, occupation or income level.

Differentiation

The art of distinguishing a business or its products from rivals in the industry. It tries to create the perception among customers that the organisation's product is different ( unique or special) compared to substitute products in the market.

Market segmentation

The process of categorizing customers into distinct groups with similar characteristics (such as age or gender) and similar wants or needs.

Marketing audit

A review of the current position of an organisation's marketing mix, in terms of its strengths and weaknesses and consideration of opportunities and threats.

Marketing plan

Document outlining an organization's marketing objectives and the marketing strategies to be used to achieve these objectives.

Marketing planning

A systematic process of devising marketing objectives and appropriate marketing strategies to achieve these goals.

Market segment

A distinct group of customers with similar characteristics ( such as age or gender) and similar wants or needs.

Mass marketing

To have undifferentiated marketing. This marketing strategy ignores targeting individual market segments.

Niche Marketing

Targets a specific and well-defined market segment, such as high-end speciality goods.

Product position map

Also known as a perception map is a visual tool that reveals customer perceptions of a product or brand in relation to others in the market, often by comparing perceptions about price and quality.

Repositioning

Marketing strategy that involves changing the market's perception of a firm's product or brand in comparison to rival businesses.

Segmentation

Process of categorising customers into distinct groups of people with similar characteristics and buying habits for market research and targeting purposes. Segmentation can be done by using demographic, geographic and psychographic factors.

Target Market

Clearly identifiable group of customers that marketers choose to focus their efforts on, such as children, adults, men or women for a particular product.

Targeting

Each distinctive market segment having its own specific marketing mix, depending on whether the business operates in niche or mass markets.

USP

Also known as unique selling proposition refers to any aspect of a good or service that makes it stand out (in a positive way) from those offered by competitors.

Needs

The essential necessities that all humans must have to survive, such as food, shelter, warmth and water.

Ethical code of practice

Guidelines that help businesses to act in a moral way by considering what society accepts as ethically right or wrong.

Wants

Human desires, i.e., things that people would like to have. Irrespective of personal income or wealth, humans have infinite wants.