Edexcel A-level Business Theme 1: Meeting Customer Needs

These flashcards provide definitions and explanations of key terms related to meeting customer needs and market dynamics in business.

Market Size

The total number of customers or volume of sales available to a business within a market.

Market Share

The percentage of the total market sales that is attributed to a particular company or product.

Niche Market

A smaller, specialized market segment within a larger market, often characterized by specific customer needs.

Mass Market

A large market where products with broad appeal are sold to a large number of consumers.

Economies of Scale

The cost advantages that a business obtains due to the scale of its operations, with cost per unit decreasing as the volume of output increases.

Market Research

The process of gathering, analyzing, and interpreting information about a market, including information about the target market and consumers.

Primary Research

The collection of new data that has not previously been collected, tailored to specific business needs.

Secondary Research

The review and analysis of existing data that has been previously collected.

Qualitative Research

Research that seeks to understand opinions, attitudes, and motivations through open-ended questions.

Quantitative Research

Research that focuses on quantifying data and is often represented in numerical form, typically including closed questions.

Segmentation

The process of dividing a market into distinct groups of buyers with different needs, characteristics, or behaviors.

Market Map

A two-dimensional diagram showing the position of a product or brand in relation to its competitors based on two specified attributes.

Competitive Advantage

The unique features or attributes of a company and its products that are perceived by customers as superior to those of competitors.

Product Differentiation

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

Brand Development

Strategies used to enhance and promote the identity and perception of a brand in the market.

Customer Loyalty

The commitment of customers to repurchase or continue using a brand, indicated by repeat purchases.

USP (Unique Selling Proposition)

A factor that differentiates a product from its competitors, often highlighting a unique benefit or feature.

Protectionism

Economic policy of restraining trade between countries through tariffs, quotas, and other regulations to protect domestic industries.

Demographic Changes

Shifts in the characteristics of a population, such as age, gender, income level, and ethnic composition.