theme 4

• Market


  any place where buyers and sellers meet to trade products and services and through which price is determined through the interaction of the forces of demand and supply
• market size

  is a measurement of all sales by all the companies in the marketplace
• market share

  the proportion of the total market held by a particular company or brand
• market potential

  the estimated maximum total sales revenue of all suppliers or a product in a market during a certain period
• mass market

  the market for goods that are produced in large quantities sells generic goods which apply to a large audience
• niche market

  the subset of a market which a specific product is focused
• economic of scale

  the process which by an average cost of production falls as the scale of the firm increases
• dynamic market

  market which is constantly moving and in a constant state of change. they come into existence, grow rapidly, see innovation and they have the entry of new players
• market research

  The activity of gathering information about consumers' needs and preferences.
• primary market research

  data which has never been collected before, usually done by question and ideally it would have a balance of open and closed questions, no leading questions
• secondary market research

  existing research
• market segmentation


  dividing a market into key customer subsets, or segments whose members share similar characteristics and needs
• Product Orientation


  a business that focuses on creating a product. the product often sells itself normally dominated by engineer or designer
• Market Orientation


  a focus of the customers wants and needs lots of market research needed often run by a marketer or an accountant
• market positioning

  customers perception of a product in relation to its competitors in terms of different attributes
• competitive advantage

  a set of unique features of a company and its products that are perceived by customers as significant and superior to its competitors , this could be done basis of - quality, design, advertising, branding, ethical stance
• product differentiation

  the extent to which a business makes a distinctive product due to the unique selling point
• demand


  the quantity of goods that will be brought at a given price level over a period of time. effective demand is how much consumers are willing and able to buy at the market price
• supply

  the quality of goods and services that producers are willing to supply/sell at a given price
• price elasticity of demand (PED)

  the measure of the responsiveness of quantity demanded to change in price
• Elasticity


  the responsiveness of one variable to changes in another measures the extent to which demand will change
• Income elasticity of demand (YED)

  the measure of the responsiveness of quantity demanded to changes in income
• ethical sourcing

  Using materials, components and services from suppliers that respect the environment, treat their workforce well and generally trade with integrity
• branding


  process of creating a lasting identity of a product. skill of giving a product/ service distinctiveness and personality
• promotion


  part of the marketing mix that focuses on and persuading people to buy the product/service in order to obtain and retain customers
• above the line promotion

  placing adverts using the media
• below the line promotion

  any promotion that does not involve the media
• price skimming

  initially selling the product at the highest possible price and then gradually lowering the price overtime
• Price Penetration

  low priced new products allow large market size and high sales volume marketing it hard for competitors to break into the market therefore large market share
• cost plus pricing

  how much does the product cost to make and % mark up
• predatory pricing


  deliberately setting price below the firms unit cost and suffering large short term losses in order to push out existing firms and acquire larger market share or a new market
• competitive pricing

  when a business sets a price similar to competitors selling similar products
• psychological pricing

  prices set at a level that seems much lower to the customer
• distribution channels

  paths, or routes that goods or services take from the producer to the ultimate consumer or individual user. it is where the consumer can buy the product
• flexible workforce

  a workforce that is able to adapt to changes
• dismissal

  means a worker is required to leave the job because their behaviour is unsatisfactory or they have repeatedly failed to work to the required standard
• reduancy

  happens when a worker is told to leave the job because their skills are no longer of use to the organisation
• recruitment

  the process of hiring the right person for the right job with the right skills
• on the job training


  it is in the workplace and provided by the employer
• off the job training

  internal or external training programs away from the workplace that develop any variety of skills or foster personal development