Theme 1.1 meeting customer needs Flashcards
(28 cards)
Mass Market
A mass market is a very large market where a product is aimed at a broad range of customers, with widely appealing products and high sales volumes.
Niche Market
A niche market is a small, specialised segment of a larger market that targets specific customer needs with a tailored product or service
Dynamic Market
A dynamic market is one that is constantly changing due to factors like new technology, consumer trends, or competition, requiring businesses to adapt frequently.
Online Retailing
Online retailing is the process of selling goods and services through the internet, allowing customers to shop remotely, often 24/7.
Innovation
Innovation is the process of creating new or improved products, services, or methods that add value for customers or increase business efficiency.
Risk
Risk in business refers to the potential for loss or failure, such as financial loss or damage to reputation, when making decisions
Uncertainty
Uncertainty is when the outcome of a business decision is unknown and cannot be predicted, often due to external factors beyond the business’s control.
Market Share
Market share is the percentage of total sales in a market that is controlled by one business, calculated by dividing a firm’s sales by total market sales.
Market Growth
Market growth is the increase in the size or sales volume of a market over time, often shown as a percentage change from one period to another.
Market Segmentation
Market segmentation is the process of dividing a market into smaller groups of consumers with similar characteristics or needs, such as age, income, or lifestyle.
Competitive Advantage
A competitive advantage is a feature that allows a business to perform better than its rivals, such as lower prices, better quality, or a strong brand.
Market Mapping
Market mapping is a visual tool that positions businesses based on two variables (like price and quality), helping identify gaps or overcrowded areas in the market.
Demand
Demand is the quantity of a product that consumers are willing and able to buy at a given price over a period of time.
Supply
Supply is the quantity of a product that producers are willing and able to sell at a given price over a period of time.
Price Elasticity of Demand (PED)
PED measures how sensitive consumer demand is to a change in price. If demand changes a lot when price changes, the product is price elastic.
Income Elasticity of Demand (YED)
YED measures how sensitive demand is to a change in income. If demand rises when income rises, the product is income elastic (often a normal or luxury good).
Market Orientation
Market orientation is a business approach that focuses on meeting customer needs and wants through product development and marketing.
Product Orientation
Product orientation is when a business focuses on the product itself and its quality, rather than what the customer specifically wants
primary research
Primary research involves collecting new, first-hand data directly from potential customers, such as through surveys or interviews
Secondary Market Research
Secondary research involves using existing data that has already been collected by others, such as government reports or online articles.
Quantitative Research
Quantitative research involves collecting numerical data that can be analysed statistically, such as through closed-question surveys.
Qualitative Research
Qualitative research gathers non-numerical, in-depth insights into customer opinions and behaviour, often using focus groups or interviews.
Sample
A sample is a group of people selected from a population to take part in research, used to represent the views of the wider market.
Bias
Bias occurs in market research when the data collected does not accurately reflect the true views of the population, often due to poor question design or sample choice.
