Business chapter 10

• Customer – an individual or business that buys goods and

  services from a business
• Customer base – the group of customers a business sells its

  products to
• Target market – individuals or

  organisations identified by a

  business as the customers or

  consumers of their products
• Consumer markets – markets for goods and services,

  bought by the final consumer
• Industrial markets – markets for goods and services bought

  by other businesses to use in their production process
• Business environment – the combination of internal and external factors that

  influence the operations of a business (Technological factors, financial factors, Economic factors)
• Free trade – no barriers exist that might prevent trade

  between different countries
• Niche marketing – developing products for a small segment

  of the market
• Mass marketing – selling the same product to the whole

  market
• The main role of marketing is to convert

  the wants of an individual into a

  need
• Deregulation - the removal of government controls from an industry; the process of

  reducing or eliminating government regulations and restrictions on the activities of

  businesses and industries.
• Privatisation – selling off public sector organisations to the private sector; the process of

  transferring ownership, control, or management of a government-owned or

  public-sector enterprise to private ownership or control
• Market segment – a part of the whole market in which consumers have specific characteristics
• The process of dividing a market into distinct groups with similar traits or behaviors is known as

  market segmentation.
• Geographic segmentation – dividing consumers in the market by geographic

  area
• Demographic segmentation – dividing consumers in the market by factors such

  as age, gender, income, ethnic background and social class
• Psychographic segmentation – dividing consumers in the market by lifestyles,

  personalities and attitude