1.1 Definitions Flashcards
(18 cards)
Define market size
How large a market is, measured in £s (value) or number of units
Define market share
Measures the sales of a business as a percentage of total sales in the market
Define market growth
The overall growth of the market over time and calculated as percentage change
Define market orientated product
A business reacts to what customers want and the decisions taken are based around customers interests
Define product orientated approach
The business develops products based on what they’re good at making and usually try to persuade customers to buy it
Define primary market research
The collection of new information first-hand for a specific purpose
Define a market
Any medium in which buyers and sellers meet
Define mass market
A market that targets a wide variety of customers and has lots of competition in a competitive market, such as fast food.
Define niche market
A market that targets a smaller segment of customers and has a higher profit margin due to less competition
Define dynamic markets
Markets that change constantly and they are shaped by forces which change frequently, such as technology
Define online retailing
When buyers and sellers meet through virtual platforms such as websites where buying and selling occurs
Define market research
The activity of gathering information about customers’ preferences
Define secondary market research
The collection of existing data that’s already been compiled by someone else for another purpose
Define quantitative data
Data expressed in quantities and provides statistical facts
Define qualitative data
Data relating to opinions of quality, such as what people think, mostly taken from interviews and surveys
Define market segmentation
The classification of customers or potential customers into groups or sub groups with similar characteristics
Define market positioning
How individual products or brands are seen in relation to their competition by consumers
Define added value
The difference between the price paid and the total cost of the inputs needed to create a product
