Edexcel AS Business Year 1 Companion Edition 1

What is niche marketing?

Niche marketing is where a business targets a smaller segment of a larger market with specific needs and wants.

What is mass marketing?

Mass marketing is where a business sells into the largest part of the market, often with many similar products offered by competitors.

What are the key features of a niche market?

Key features include less competition, a clear focus on specific customers, higher profit margins, and specialized skills.

What are the advantages of targeting a niche market?

Advantages include less competition, clearer focus, ability to charge higher prices, and higher customer loyalty.

What are the disadvantages of targeting a niche market?

Disadvantages include lack of economies of scale, over-dependence on a single product, and vulnerability to market changes.

What is market size?

Market size is a measure of the total available demand for competitors in a market.

How is market size normally measured?

Market size is usually measured in terms of annual sales or the volume sold per year.

What is market growth?

Market growth measures the rate of change of market size, which can be rising, falling, or remaining stable.

What is market share?

Market share is expressed as a percentage that explains how the overall market is divided among existing competitors.

What does competitive advantage refer to?

Competitive advantage is the ability of a business to add more value for its customers than its rivals.

What is the relationship between risk and uncertainty in business?

Risk refers to the possibility that things will go wrong and can be managed, while uncertainty refers to unpredictable and uncontrollable events.

What is primary market research?

Primary market research involves the collection of new, original data specifically gathered for a particular purpose.

What is secondary market research?

Secondary market research involves the use of existing data that has been collected and analyzed for purposes other than the current research.

What is qualitative research?

Qualitative research is based on opinions, attitudes, and beliefs, aimed at understanding underlying reasons for behavior.

What is quantitative research?

Quantitative research is based on numerical data and statistical analysis, often using large samples.

What is segmentation in marketing?

Segmentation involves dividing a market into parts that reflect different customer needs and wants.

What influences the effectiveness of advertising?

Factors include stage in the product life cycle, the nature of the product, competition, and marketing objectives.

What are the four types of distribution channels?

The four types include retailers, wholesalers, distributors, and agents.

What is direct distribution?

Direct distribution is when a producer deals directly with the consumer without intermediaries.

What is indirect distribution?

Indirect distribution involves the use of intermediaries between the producer and the consumer.

What is dynamic pricing?

Dynamic pricing is a strategy where prices are flexible and can change based on current market demands.

What are the stages of the product life cycle?

The stages are development, introduction, growth, maturity, and decline.

What is the Boston Matrix?

The Boston Matrix is a model used to analyze a product portfolio based on market share and growth.

What is a loss leader?

A loss leader is a product sold at a loss to attract customers to buy other higher-margin products.

What does the term 'price skimming' mean?

Price skimming is when a business sets a high initial price for a product to maximize profits from early adopters before reducing the price.