Business Key Terms-Unit 1

Competition?

Rivalry amongst sellers trying to achieve goals, e.g. increase profits, market shares and sales volume

Dynamic market?

A market that is subject to rapid/continuous change.

Indirect competition?

Different businesses make/sell products that aren’t in direct competition but compete for the same customer experience, e.g. Netflix and the local cinema.

Market growth?

Increase in demand/sales for a particular product/service.

Market share?

% of total market a business has in terms of volume/value.

Mass market?

A large unsegmented market where mass appeal products are on sale,e.g. coca-cola (all products are same)

Niche market?

A smaller/specialist segment of a larger market where consumers have specific needs/wants, e.g. customised shoes

Sales volume?

Quantity of goods sold within a period of time-Calculation- SALES REVENUE/SELLING PRICE

Uncertainty?

Lack of knowledge about future events and outcomes-Caused by unexpected external factors outside business control.

Biased questions?

Where questions don’t produce findings that give a true reflection of the views of target audience on product.

Focus group?

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

Government data?

Gov. publications that a business can use such as the census of the population.

Market orientation?

When a business’s products are based around the needs/wants of a customer-products meet requirements.

Market research?

Gathering, presenting and analysing info about products/customers.

Market segmentation?

Dividing a whole market into particular customer groups that have similar characteristics.

Observations?

Where market researchers watch the behaviour of customers.

Primary market research?

(Also known as field research)- Obtaining data first hand from the business to match specific needs of business.

Product orientation?

When a business prioritises a product’s design quality/performance rather than meeting customer preferences to guide productions and marketing decisions.

Sample?

A small group of people who must represent a proportion of a total market when carrying out market research.

Secondary market research?

Data collected by another business used by the business in question-also known as desk research.

Segmentation?

Dividing the market into groups of people with similar characteristics.

Trade publications?

Specialist magazines that look at current trends in the business world.

Added value?

Increase in value that a business creates when producing a product-Difference between selling price and cost of input.