BUSINESS AS P1 KEY TERMS

• Brand


  A symbol, logo or design that is recognisable and distinguishes a product from competitors
• Competition


  The rivalry among sellers trying to achieve goals such as increasing profits, market share, and sales volume
• Competitor


  A rival business operating in the same market offering similar goods or services
• Direct competition


  Businesses produce similar products that appeal to the same group of customers
• Dynamic market


  A market that is subject to rapid/continuous change
• Indirect competition


  Different businesses make or sell products that are not in direct competition but compete for the same customer experience e.g. Netflix and the local cinema
• Innovation


  The creation, development and implementation of a new product, process or service
• Market


  Where buyers and sellers interact
• Market growth


  An increase in demand/sales for a particular product/service
• Market share


  The % of the total market a business has in terms of volume or value
• Market size


  The total amount of sales/customers in a market measured by value/volume
• Mass market


  A large unsegmented market where mass appeal products are on sale
• Niche market


  A specialised section of the market where customers have specific needs/wants
• Online retailing


  Selling goods and services on the internet
• Product innovation


  The development/creation of products not previously available
• Sales volume


  The quantity of a good or service sold within a period of time. Calculation Sales revenue/selling price
• Uncertainty


  The inability to predict/a lack of knowledge about future events and outcomes/reasons for uncertainty. Is caused by unexpected often external factors outside the business's control, even though sometimes these can be predictable
• Biased questions


  Where the questions do not produce findings that give a true reflection of the views of the target audience on the product or service
• Consumer behaviour


  How consumers make decisions about how they choose and use products or services
• Databases


  An organised collection of data stored electronically with instant access, searching and sorting facilities
• Face-to-face survey

  A research method used where the interviewer communicates directly with the respondent using a questionnaire
• Focus group


  A group of people who participate in a discussion as part of market research to give feedback about a product or service
• Government data


  Government publications that a business can use such as the census of the population
• Interview bias


  Where the opinion of the interviewer interferes with the judgements of the interviewee
• Market orientation


  When a business's products/services are based around the needs and wants of the customer
• Market reports


  A document that contains information, stats, research and facts on a chosen field
• Market research


  Gathering, presenting and analysing information about products/customers
• Market segmentation


  Dividing a whole market into particular customer groups that have similar characteristics
• Observations


  Where market researchers watch the behaviour of customers
• Primary market research


  Obtaining data first hand by the business to match the specific needs of the business. It can also be known as field research
• Product orientation


  When a business prioritises a product's design quality or performance rather than meeting customer preferences to guide production and marketing decisions
• Qualitative research


  Market research collected relating to the opinions and beliefs of consumers . Data not presented numerically
• Quantitative research data


  Numerical information gathered and can be presented and analysed using graphs, charts, table etc
• Respondent bias


  When respondents respond inaccurately to a question for some reason
• Sample


  A small group of people who must represent a proportion of a total market when carrying out market research
• Secondary market research


  Data collected by another business or organisation but used by the business in question. Also known as desk research
• Social networking


  A platform such as Facebook, X and You Tube, which can be used to market a businesses products/services
• Survey


  A method of (primary) research used to collect information
• Test marketing


  Trialling the product in a small area or to a limited number of users to assess the suitability of a product
• Added value


  The increase in value that a business creates when producing a product/service. The difference between the price the customer pays and the total cost of inputs needed to create a product