01 - All Definitions

• define the key term 'market'


  a market is where two parties, usually buyers and sellers can gather to facilitate the exchange of goods and services
• define the key term 'market size'

  market size is the TOTAL amount of sales from all the producers in a certain market
• define the key term 'mass market'


  a mass market is a market that is aimed at the general population ( I.e normal toothpaste )
• define the key term 'niche market'


  a niche market is a subset of a mass market and addresses a specific group of people I.e ( toothpaste for sensitive teeth )
• define the key term 'dynamic market'


  a dynamic market is a market that is subject to rapid or continuous changes I.e the tech industry, or fashion industry
• define the key term 'risk'

  business risk refers to the chance a business will have lower profits than anticipated, or experience a loss rather than making a profit
• define the key term 'uncertainty'


  uncertainty is when businesses are unable to predict external shocks or future events I.e an earthquake destroying a suppliers factory
• define the key term ' market research '


  market research is the process of collecting data from consumers and end users which can be in the form of a business identifying market gaps and developing market strategies
• define the key term ' primary research '


  primary research is collecting data first hand this means that new data is gathered for the benefit of the business, and this data will be specific to the needs of the business
• define the key term ' secondary research '


  secondary research is the collecting of second hand data, collecting data that already exists.
• define the key term 'sampling'


  sampling is the act, process, or technique of selecting a suitable sample of the population for the purposes of carrying out market research
• define the key term ' qualitative data '


  qualitative data is the collection of non numerical data, usually data in the form of information, ideas, and concepts that are not represented by numbers
• define the key term 'quantitative data'


  quantitative data is the collection of numerical data e.g. the % of customers that bought iced coffee this week
• define the key term 'product orientation'


  product orientation is when a business prioritises improving their products, usually their existing products quality, rather than focusing on the market
• define the key term 'market orientation'

  market orientation is when a business prioritises improving and creating products based on their markets wants and needs
• define the key term 'market segmentation'

  market segmentation is the process of dividing a market into different groups based on peoples distinguishable characteristics, this helps businesses in market positioning and targeting certain audiences
• define the key term ' market mapping '


  market mapping is a technique used to find variables which differentiate brands in a market , then plotting them on a map in hopes of identifying a gap in the market
• define the key term 'demand'


  demand is the amount of a product that consumers are willing and able to purchase at a given price
• define the key term 'substitute goods'


  substitute goods are goods that could be replaced for another e.g. hazelnut chocolate spread or cocoa chocolate spread
• define the key term 'complementary goods'


  a complementary good is a product that is directly associated with or paired with another good e.g. ink and a printer
• define the key term 'demographics'


  demographics are statistical data to do with the structure of the population e.g. we are all living longer, or all our incomes are falling
• define the key term 'external shocks'

  external shocks are uncontrollable events that occur and negatively impact businesses. e.g. natural disasters, recession, wars etc
• define the key term 'seasonality'


  seasonality is any predictable change or pattern in a time series that recurs or repeats over a one-year period can be said to seasonal e.g. buying winter coats during the winter
• define the key term 'income elastic demand'

  income elasticity of demand is an economic measure of how responsive the quantity demanded for a good or service is to a change in come
• define the key term 'price elastic demand'

  price elasticity of demand is a measurement of the change in the demand for a product in relation to a change in its price
• define the key term 'marketing'


  marketing Is the process of promoting a good or service in order to promote the buying and selling of a good or service
• define the key term 'marketing strategy'

  a marketing strategy are the methods used by a business to achieve their marketing objectives
• define the key term 'product life cycle'

  the product life cycle is the amount of time a product goes from being introduced into the market until its taken off the shelves
• define the key term 'boston matrix'

  • the boston matrix is a model which helps businesses analyse their portfolio of businesses and brands
• define the key term 'product portfolio'

  a product portfolio are all the goods and services a business offers for sale at a given period in time
• define the key term 'marketing mix'

  the marketing mix is a common classification that began as the four Ps: product, price, placement, and promotion
• define the key term 'customer loyalty'

  customer loyalty is an ongoing positive relationship between a customer and a business
• define the key term 'above the line'

  above the line marketing refers to a form that uses mass media channels such as television,. radio print, outdoor advertising and online media to reach a wide audience.
• define the key term 'below the line'


  below the line advertising is advertising through mediums other than radio, television, billboard, pint and film. Through direct mail campaigns, social media etc
• define the key term 'product service/design'

  product / service design is the combination of factors needed in designing a product

  
  

  or

  
  

  aesthetics, function, cost
• define the key term 'aesthetics'


  aesthetics are all the aspects that contribute to how a product or service looks. its about making a product desirable
• define the key term 'function'

  function refers to the benefits that a product or service provides. it includes how well a product meets a need or solves the problem for which it was intended
• define the key term 'cost'

  cost is the monetary value spent by a company for the production of a certain good or service
• define the key term 'resource depletion'

  resource depletion is the reduction in earths natural resources such as precious metals
• define the key term 'waste minimisation'

  waste minimisation is a businesses way of making sure that there is no waste in the production process, for example making other goods offcuts