Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Business > 1.1 > Flashcards

1.1 Flashcards

1
Q

What is a market?

A

A place where buyers and sellers come together to exchange goods or services.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What is a mass market?

A

A market that is not segmented, the product is targeted at a wide range of customers.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What is a niche market?

A

A small, unsatisfied gap in the market, target audiences are well defined with distinct characteristics. Small segment of the market. Often charge high prices.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Market size

Definition and formula

A

The total value or volume of sales in a market.

Number of units sold x price.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Market share

Definition & formula

A

The proportion of total market sales that a firm has.

sales of one firm / total market sales x 100.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

What is a brand?

A

The creation of an identity for the business that distinguishes it from other firms. Brand is a trade mark. It can be a name, shape symbol, colour, logo

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Advantages for branding

A
  • Adds value
  • Brand loyalty
  • Brand personality e.g. high quality
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Why are markets always changing?

A
  • social trends
  • changes in technology
  • Competition
  • Changes in consumer tastes.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

What is a Dynamic market?

A

A market that is always changing.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

What is E-Commerce and the benefits?

A 
Selling online.
Advantages:
- Convenient
- 24 hours
- no staff/ rent
- can be used for multi - channel distribution
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

What is Market Growth and the formula?

A

The percentage increase in a market.

change in size of the market / original size x 100

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

What is Innovation?

A

When a new idea or invention is launched onto the market.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

How does competition affect markets?

A
  • Pricing
  • Buying Power of consumers
  • selling power of suppliers
  • availability of substitutes
  • willingness and ability for firms to enter the market.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

What is the difference between uncertainty and risk?

A

Risk is measurable, uncertainty is too unpredictable and not measurable.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Product orientation

A

Inward looking approach, focusing primarily on producing a high quality product and the production process. Informed by R&D.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Market orientation

A

Focus the product on what consumers want using market research. Aim to meet consumer needs. This method is less risky.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Market research

A

The collection and analysis of data and information to inform a business about its market.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Primary data

A

Collection of first hand data. It is original and did not exist before.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

Secondary data

A

Research that has already been undertaken by another organisation and therefore already exists.

20
Q

Why firms conduct market research

A
  • Identify and anticipate customer needs and wants.
  • Quantify likely demand
  • Gain insight into consumer behavior
21
Q

Qualitative data

A

Non-statistical information that gives the company in depth insight into consumers wants.

22
Q

Quantitative data

A

Statistical data that is easier and quicker to gather but does not give reasons behind answers.

23
Q

Limitations of market research

A
  • Past data and trends may not be a fair indication of the future
  • Dependent on the ability to correctly analyse findings
  • Financial and opportunity costs
  • Data can be bias
24
Q

What is a sample?

A

A group of subjects that has been chosen from a larger group, the population, for investigation.

25
Q

What does the value of sampling depend on?

A
  • The sample technique used
  • How the sample was carried out
  • The size of the sample
26
Q

What does the size of a sample depend on?

A
  • The budget available
  • The importance of accuracy
  • Degree of confidence in results.
27
Q

Types of sampling techniques

A
  • Random
  • Quota (Certain amount of people sampled)
  • Stratified (More specific sample)
28
Q

Use of IT to support Market research

A
  • Website feedback
  • Social media feedback
  • Databases
29
Q

Market segmentation

A

When the market is split into subgroups of consumers with similar characteristics.

30
Q

What is the purpose of market segmentation?

A

Helps identify different types of consumers and their different wants and needs.

31
Q

Examples of market segmentation

A
  • Demographic
  • Geographic
  • Income
  • Behavioral
32
Q

Benefits of market segmentation

A
  • Advertising can be more targeted
  • Most and least profitable customers can be identified
  • Least profitable markets can be avoided
  • It becomes easier to identify new products.
  • It helps the firm improve existing products and customer service.
33
Q

What is positioning?

A

Where a product is placed in the market relative to its competitors
Can be achieve through changing elements of the marketing mix.

34
Q

What influences positioning?

A
  • Internal constraints e.g. budgets
  • Internal strengths e.g. innovation
  • Market conditions e.g. competition
  • External environment e.g. economic climate.
35
Q

Market mapping

A

A diagrammatic technique that enables businesses to display the perceptions of customers.
Compares different variables. Can be used to analyse consumers and competitors.

36
Q

What is a competitive advantage

A

Allows a business to perform more successful than others in the market. e.g. lower price / USP

37
Q

What factors contribute to a competitive advantage?

A
  • Product differentiation
  • Ability to add value
  • Operational efficiency
  • Position relative to competitors
38
Q

Michael Porters Generic Strategy

A

A firm can enjoy a competitive advantage if it is either:

  • Lowest cost
  • Highest differentiated

Claims you should not get stuck in the middle

Low cost - USP
-----------------------------
Mass market
----------------------------
Niche market.
39
Q

Low cost in porters generic strategy

A

A strategy of low cost can be successful in either a mass or niche market.
Cost leadership in a mass market and focused cost leadership in a niche market.

40
Q

Differentiation in Porters generic strategy

A

Differentiation can be successful in a mass and niche market.
Differentiation in a mass market and focused differentiation in a niche market.

41
Q

Product differentiation

A

Having a unique feature that makes a product stand out from others in the market place

42
Q

Unique selling point

A

A usp distinguishes firms products from competitors, differentiates their firm from others.

43
Q

What does product differentiate allow a firm to do?

A
  • Charge a premium price
  • Gain brand loyalty
  • Add value.
44
Q

Added value

A

When the value of a finished good or service is above the cost of production by increasing their factors of production.

45
Q

How do firms add value?

A
  • Manufacturing
  • Marketing
  • Technology
  • Customer service
  • USP

Business (11 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions