Theme 1

• What is Marketing?


  Range of activities that help a business sell its products.
• What do Dynamic markets do?

  Constantly change
• What is Mass Marketing?


  Meeting the needs of a large number of potential customers.
• What is Niche Marketing?


  Meeting the needs of a smaller number of potential customers.
• What are positives of operating in a Mass Markets?

  More customers

  Cost effective (Economies of Scale)

  Brand awareness
• What are the negatives of operating in a Mass Market?

  Poor customer experience

  Competition

  Unaccessable for small businesses
• What are the positives of operating in a Niche Market?

  Less competition

  Brand loyalty

  Charge higher prices
• What are the negatives of operating in a Niche Market?

  Lack of economies of scale

  Vulnerable to change
• What is Market Size?

  Total number of sales of all businesses in a market.
• What is Market Share?


  How much of a market one business holds.
• What does being Product Orientated mean?


  Focus on goods you are good at making.
• What does being Market Orientated mean?

  Focus on goods based on customer wants and needs.
• What is Primary Research?


  Your own research.
• What is Secondary Research?

  Someone else research.
• What is Qualitative research?


  Detailed thoughts and feelings.
• What is Quantitative research?

  Numerical and statistical data.
• What is ICT used for in business?

  Websites

  Databases

  Social Media
• What is Market Positioning?


  Business decides where to place their business on a market map.
• What is a Market Segment?


  A group of buyers with similar characteristics.
• Why do businesses use Market Maps?


  See competition

  Gap in market

  Identify targets
• What is ment by a Competitive Advantage?


  One or more things one business can do that another cannot.
• What is Demand?


  Number of people interested in buying a product.
• What are 3 factors that effect demand?

  Seasonality

  Subsitutes

  Income
• What does a Demand Curve show?

  Relationship between demand and price.
• What is Supply?


  Quantity of goods that producers can and will deliver in a period of time.
• What are 3 factors that effect Supply?

  Technology

  Production costs

  Constraints
• Describe a Supply & Demand graph:

  A) SUPPLY

  B) PRICE

  C) PRICE

  D) DEMAND

  
• What is Market Equilibrium?

  When Supply and Demand are equal.
• What is Elasticity?


  The responsiveness of demand to a change in Price / Income.
• What is the Law of Demand?

  As price increases, demand decreases.
• What is a elastic good?


  The demand for the good is very reponsive.
• What is a inelastic good?


  The demand for the good is unresponsive.
• What 3 things influence PED?

  Subsitute products

  Brand Loyalty

  Luxary goods
• What is real income?

  Changes in income compared to changes in inflasion.
• What are the 4 p's?

  Product

  Price

  Place

  Promotion
• What is a product?


  A good or service that a business provides.
• What are the 3 areas of the design mix?

  Aesthetic

  Function

  Cost
• What are 3 influences of the design mix?

  Ethics

  Waste Minimisation

  Environmental Concerns
• What is the Product Life Cycle?

  Stages products go through that help to understand the characteristics.
• What are the 5 stages of the Product Life Cycle?

  A) Development

  B) Introduction

  C) Growth

  D) Maturity

  E) Decline