Business

• 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