Business

Cards (150)

  • what is a market?
    a market is a place where buyers and sellers come to exchange goods
  • what is a brand?
    when a business creates a distinct image in the market/ in the minds of customers
  • what is a niche market?
    a niche market is small and specialised segment of a market
  • what are the characteristics of a niche market?
    charge higher prices
    less competition
    specialised products
  • what is a mass market?
    a large market which targets many different demoghraphics with the same mass produced products
  • what are the characteristics of a mass market?
    flow production
    little to no differentiation between competition
    many firms- high number of competition
    dominated by large corporations
    lower unit costs- higher profit margins
  • what is the formula for market size?
    sales/market share x 100
  • what is the formula for market share?
    Sales of business / total sales in market x 100
  • what is a dynamic market?
    a dynamic market is a market which is constantly changing
  • what are the reasons for dynamic markets constantly changing?

    change in technology
    social trends
    change in competition
    fluctuation in incomes
    change in preferences
  • define risk
    factors that are not expected but can be assessed
  • define uncertainty
    being unsure of the factors influencing sales, therefore being unable to predict what will happen
  • what is market research?
    market research is the process of collected and interpreting information found about a market
  • what is marketing?
    how a business interacts with its audience- advertising or promotion
  • what is product orientation?
    Business develops products based on what it is good at doing
  • what is market orientation?
    When a business bases its marketing mix on its perception of what the market wants
  • advantages of market orientation
    fits customers wants and needs
    quick responsiveness to change in market trends
  • disadvantages of market orientation
    changing function regularly can cost a lot and confuse brand
  • advantages of product orientation
    focused on product development which increases quality
  • disadvantages of product orientation
    doesn't prioritise what customers want so it may not be appealing to customers in the market- less sales on the product, unsatisfied customers
  • what is primary research?
    collected data and information first hand
  • what is secondary research?
    collecting data from another source
  • why is research important?
    it helps businesses anticipate what customers need so they can stay ahead of competition/ be the first in the market to release a product which then increases their market share
  • methods of primary research
    - Surveys
    - Interviews
    - Focus groups
    - Observations
  • methods of secondary research
    - Market analysis
    - internet
    - Government publications
    - media
  • advantages of primary research
    up to date information
    meets specific needs of the business
  • disadvantages of primary research
    expensive
    may not always be helpful
    time consuming
    requires large smaple sizes
  • benefits and drawbacks of OBSERVATION
    adv- can reveal feelings baout a product under no biasness
    disadv- time consuming and costly
  • benefits and drawbacks of ONLINE SURVEY
    adv- much quicker as it can automatically go into the database
    disadv- low response rate
    generic opinions
  • benefits and drawbacks of FOCUS GROUP
    adv- detailed opinions
    disadv- expensive
  • benefits and drawbacks of GOVERNMENT PUBLICATION
    adv- free from business bias
    disadv- may be out of date
    all businesses have access to the information
  • what is qualitative data?

    non-numerical data, data in opinions
  • what is quantitative data?
    numerical data
  • benefits of qualitative data

    - indepth opinions useful to further understand customers
    -Can ask further questions if needed
  • disadvantages of qualitative data
    - time consuming and expensive
    - Can make a false impression and can be biased
    - Cannot be extended to a wider population
  • benefits of quantitative data
    - Data relatively easy to analyse
    - Numerical data provides insights into relevant trends
    - Can be compared with data from other sources
  • disadvantages of quantitative data
    doesn't explain why things happen
    may lack reliability because of sample size inaccuracy
  • what is market segmentation?

    dividing a market into different parts to target them easier
  • main segments
    demographic
    -age
    -gender
    -income
    -religion
    behavioural
    -value for money
    -loyalty
    -readiness to purchase
    geographical
    psychographical
  • benefits to segmentation
    better target customers
    gain more market share
    better targetting in promotion
    oppurtunities for growth
    retain more customers