Business Theme 1 definitions- Marketing

Mass market

Mass market

Standardised product that is targeted at the largest group of consumers for that product.

Niche market

A smaller segment of a larger market that have specific characteristics and needs.

Market size

Total value of a market in sales over a certain period of time.

Market share

Proportion of a market that a business holds.

Branding

Creating a clear and obvious logo, statement or name that customers can instantly recognise.

Dynamic market

A market that changes and evolves rapidly.

E-Commerce

Exchange of goods and services on the internet.

Product orientation

Focus on design, quality and performance of a product rather than meeting customer wants.

Market orientation

Focus on creating products that meet customer wants.

Market research

Collection and analysis of market information.

Primary research

When a business collects new data (or employs someone to collect it for them) eg Focus groups, surveys

Secondary research

Involves using information that has already been collected eg Govt publications, Statista, MINTEL REPORTS

Market segmentation

Dividing a market into groups of buyers (segmentation). Each segment shares certain characteristics.

Competitive advantage

A feature of a product that gives a company an advantage over other companies, potentially attracting more customers.

Added value

Difference between cost of making a product and the selling price.

Demand

Quantity of a product that customers are willing and able to buy at a given price, at a given time

Supply

Quantity of a product that a supplier is willing and able to supply at a given price, at a given time.

Equilibrium price and quantity

When the quantity that buyers demand is the same as the quantity suppliers wish to supply. aka market clearing price.

Price elasticity of demand (PED)

Shows how much price change affects demand.

Income Elasticity of demand (YED)

Shows how much demand change as incomes change.

Marketing mix (4 Ps)

The plan a business uses to reach their marketing objectives.

Design mix

3 factors- cost, aesthetics and function are mixed together in different ways in order to appeal to a target market.

Promotion

Designed to inform customers about a product and persuade them

Emotional branding

Branding of a product is matched to lifestyles, values or aspirations of consumers to trigger an emotional response and engage with them.