1.1 The Market key terms

mass market

products aimed at the whole market and produced in large quantities and is widely available

niche market

products aimed at a smaller section of the market and are produced in smaller quantities and targeted towards groups of people

market size

the total sales in a market in a year

dynamic markets

a market that is in a rapidly changing business environment

direct competition

rivals selling the same type of product e.g. dominos vs pizza hut or coca cola vs pepsi

indirect competition

businesses selling different products but satisfying the same need e.g. sandwiches vs pizza

risk

can be anticipated and measured and is affected by internal issues in the company

uncertainty

difficult to predict and cannot be measured and is affected by external events

product orientation

focus on the product and then advertising e.g. dyson and apple

market orientation

focus on the customers wants and needs e.g. ASDA’s chosen by you range

primary research

gathering of “new” information which does not already exist

secondary research

the gathering of data that is already in existance

qualitative data

data about attitudes, opinions, beliefs or customers

quantitative data

statistical data that can be measured (

market segmentation

dividing the market up into types of customers with similar lifestyles and buying habits

market positioning

process of using a graph to plot competitors and their products to understand the market and spot a gap in the market

competitive advantage

a way a company can gain an advantage by being different to generate sales and more profit

product differentiation

ways a company makes their product different to other competitors for various reasons to allow for higher prices, newer versions and gain brand recognition

added value

the difference between the cost of production and the selling price to the customer