1.1 - Meeting Customer Needs

A comprehensive vocabulary flashcard set covering key marketing concepts, market research methods, market segmentation, positioning, and competitive advantage from the Edexcel A-Level Business course notes.

Market

Any place where buyers and sellers can meet, such as amazon.co.uk or a shopping mall.

Needs

Items that are considered essential for human survival, such as shelter or food.

Wants

Desires that are non-essential, even if consumers consider them to be essential, such as Nike trainers.

Market Research

The process of systematically gathering data from consumers that can be used to influence business decisions.

Mass Markets

Markets where products are aimed at broad market segments, characterized by large-scale production, low average costs, and lower profit margins.

Market Segments

Groups of consumers who share similar characteristics, such as age or lifestyle.

Mass Marketing

Occurs when businesses sell their products to most of the available market.

Niche Markets

Markets where products are aimed at a subset of the larger market, featuring specialized products, high average costs, and higher profit margins.

Niche Marketing

Occurs when businesses identify and satisfy the demands of a small group of consumers within the wider market.

Sales Volume

The physical number of units or products sold by a business.

Sales Revenue

The financial value of units sold, calculated using the formula: $\text{Sales revenue} = \text{price} \times \text{quantity sold}$.

Market Share

The proportion of total sales of a product/service compared to the market as a whole, calculated as: $\text{Market share} = \frac{\text{Sales of a business}}{\text{Total sales in the market}} \times 100$.

Brand

A name, image, or logo that helps a product or service stand out from its competitors.

Branding

One of the key ways businesses achieve product differentiation and communicate their offering to target consumers.

Dynamic Market

A market that is subject to rapid or continuous change, driven by changing technology, consumer preferences, and competition.

Online Retailing

The process of selling products via the internet, offering access to more consumers and 24/7 trading hours.

Direct Competition

Competition that occurs when a business targets customers with the exact same or similar product as a competitor.

Indirect Competition

Competition that occurs when firms sell different products but compete with each other for customers' disposable income.

Product Innovation

The adaptation or improvement of existing products, such as improved video cameras on laptops.

Process Innovation

The adaptation or improvement of existing business processes, such as just-in-time stock control.

Market Growth

The measurement of the change in size of the entire market, expressed as a percentage of the original size.

Risk

The potential threat to business success that can be measured and prepared for using risk management.

Uncertainty

A situation in business where outcomes are unknown and difficult to predict.

Product Orientation

An approach to marketing that focuses on the characteristics of the product rather than the needs of the consumer.

Market Orientation

An approach to marketing that focuses on the needs of consumers and uses this information to design products that meet customer needs.

Primary Research

The process of gathering new information directly from consumers in the target market using field research methods.

Secondary Research

The collection, compilation, and analysis of data that already exists and was collected for other purposes.

Market Segmentation

The process by which a single market is divided into submarkets or segments based on distinct consumer characteristics.

Geographic Segmentation

Breaking up a market into groups of customers based on defined locations where they live, work, or spend leisure time.

Behavioural Segmentation

Dividing a market based on customer lifestyle, health choices, purchasing habits, frequency of purchase, or brand loyalty.

Demographic Segmentation

Breaking up a market into groups of customers with similar characteristics, such as age, gender, and family circumstances.

Market Positioning

The process a business goes through to decide where to position its product in the market regarding price, quality, branding, and customer perception.

Market Map

A two-dimensional diagram that shows the attributes or characteristics of a product in comparison to rivals' products using two chosen criteria.

Competitive Advantage

Features of a business and its products that are perceived as superior to rivals by customers, making the product both distinctive and defensible.

Product Differentiation

An attempt by a business to distinguish its products from those of competitors through unique features, functions, or brand perception.