Theme 1/4 - all definitions Flashcards
Define markets
Places where buyers and sellers come together to exchange goods and services
Define marketing
Identifying, anticipating and satisfying customer needs profitably
Define mass market
Business focuses on majority of the market
Define niche market
Business focuses on specific segment of the market
Define market size
Measurement of market scale using volume and value
Define market growth
Amount a market increases / decreases over a period of time
Define market share
% of a markets total sales earned by a particular company
Define dynamic market
One that is in a rapidly changing business environment
Define direct competition
Competitors who produce the same type of goods as rivals
What is indirect competition
Competitors who produce substitute goods to their rivals
Define uncertainty
Unexpected events that have a dramatic effect on markets
Define risk
Something that can be planned for when probabilities of outcome are known
Define market orientation
The consumer is the most important factor when providing for a market
Define product orientation
The product is the most important factor when providing for a market
Define market segmentation
Identifiable part of a market where consumers share characteristics and needs
Define market mapping
Using a graph to understand competitor behaviour and spot gaps in market
Define competitive advantage
A way to make products or services appear superior to its competition
Define added value
Difference between price charged and cost required to create
Define product differentiation
How a business differentiates products
Define demand
Quantity of a good that consumers are willing and able to purchase
Define substitute goods
Products that can be used in place of each other
Define complementary goods
Products that need to be used together
Define demographics
The statistical data relating to population
Define supply
Amount of a good or service a producer is willing and able to make at a given price
