Marketing - AQA A-level Business Studies

• marketing


  maximise revenue in the most cost-effective way
• sales volume

  number of units sold
• sales value


  Measures the financial worth of the items sold
• market size equation

  no. of units sold in market per period x average selling price
• market growth equation

  change in market size/original market size x 100
• sales growth

  rate of sales growth per period
• market share equation

  sales of this product/total market sales x 100
• market research

  involves gathering and analysing data relevant to the marketing process
• primary market research


  data collected first hand for a specific research process
• secondary market research

  data that already exists
• quantitative research


  concerned with data
• qualitative research


  based on opinions, attitudes, beliefs and intent
• sampling


  involves the gathering of data from a sample of respondents, the result of which should be representative of the target market as a whole
• correlation


  looks at the strength of a relationship between two variables
• extrapolation


  uses trends established from historical data to forecast the future
• confidence level


  The probability that the research findings are correct
• confidence interval


  The possible range of outcomes for a given confidence level
• price elasticity of demand


  measures the extent to which quantity demanded is affected by a change in price
• PED equation

  % change in quantity demanded / % change in price
• income elasticity of demand


  a measure of how much the quantity demanded is affected by a change in consumer income
• IED equation


  % change in quantity demanded / % change in income
• segmentation


  is the process of identifying groups with similar needs.
• demographic segment


  based on demographic variables - e.g. age & gender
• income segmentation

  basis of socioeconomic grouping
• behavioural segmentation


  based on different consumer wants and needs
• geographical segmentation


  dividing a market into homogeneous groups on the basis of their locations
• targeting


  choosing which segment to focus on
• positioning


  identifies the benefit and price combination of a product relative to competitors
• niche marketing


  focuses on a particular segment of the market
• mass marketing


  aims to provide products that meet the needs of a large portion of the market
• product


  good or service that a customer buys
• price


  how much something costs
• place


  how the product will be distributed
• promotion


  how the business communicates about the product
• people


  who makes contact with the customer
• process


  systems and processes that deliver a product to a consumer
• physical environment


  what the customer experiences
• consumer products

  Goods bought for consumption by the general public
• convenience items


  widely distributed products
• shopping goods


  customers compare features and price