1.1 Flashcards
(28 cards)
What is a market?
A place where buyers and sellers come together to exchange goods and services
What defines a mass market?
When a firm targets the whole of a market rather than a particular segment
Define a niche market.
When a firm targets a small subsection or previously unexploited gap in a larger market
How is market size calculated?
Number of units sold x price
What is market share?
The proportion of total market sales that a particular firm has
How is market share calculated?
Sales of firm A/total market sales × 100
What are brands?
A feature of a business or product that is recognised by customers and distinguishes it from competitors
What characterizes dynamic markets?
The environment is dynamic and therefore markets are always changing
What does market growth refer to?
The percentage increase in the size of the market
How is market growth calculated?
Change in size of market / original size x 100
What does competition in a market refer to?
The number of competitors that a business faces within the market that it operates
Define product orientation.
An inward looking approach to new product development focused on what products can be made
What is market orientation?
An outward looking approach to new product development focused on what products the consumer wants
What is market research?
The process of gathering primary and secondary research to inform marketing decision making
What is primary market research?
Collection of first-hand data that did not exist before
What is secondary market research?
Research that has already been undertaken by another organisation
What is quantitative data?
Statistical data that informs a company about people’s behavior
What is qualitative data?
Non-statistical information that provides in-depth insight into the reasons for human behavior
Define demand in a market context.
The amount of goods or services that a consumer is willing and able to buy at a given price
What is consumer behavior?
The reason behind the actions of people, influenced by their opinions and preferences
What is market segmentation?
The splitting of customers into categories to identify different types of consumer
What does market positioning refer to?
How a product is perceived relative to its competitors
What is market mapping?
The process of positioning competition within a market by plotting key variables
What is competitive advantage?
A feature of a business’ product that allows it to perform more successfully than others
