Business - Paper 1

• Brand Name


  A name, term, sign, symbol, design or any other feature that allows consumers to identify the goods and services of a business and to differentiate them from those of competitors
• E-commerce


  Conducting business transactions online
• Online retailing


  The retailing of goods online
• Market


  A set of arrangements that allows buyers and sellers to communicate and trade in a particular range of goods and services
• Marketing


  A management process involved in identifying, anticipating and satisfying consumer requirements profitably
• Market share


  The proportion of total sales in a particular market for which one or more businesses or brands are responsible. It is expressed as a percentage and can be calculated by value or volume.
• Mass market


  A very large market in which products with mass appeal are targeted
• Niche market


  A smaller market, usually within a large market or industry
• Consumer panels


  Groups of customers are asked for feedback about products over a period of time
• Database


  An organised collection of data stored electronically with instant access, searching and sorting facilities
• Focus groups


  Where a number of customers are invited to attend a discussion about a product led by market researchers
• Market orientation


  An approach to business which places the needs of consumers at the centre of the decision-making process
• Market research


  The collection, presentation and analysis of information relating to the marketing and consumption of goods and services
• Market segment


  Part of a whole market where a particular customer group has similar characteristics
• Primary research or field research

  The gathering of 'new' information which does not already exist
• Product orientation


  An approach to business which places the emphasis upon the production process and the product itself
• Qualitative research


  The collection of data about attitudes, beliefs and intentions
• Quantitative research


  The collection of data that can be quantified
• Respondent


  A person or organisation that answers questions in a survey
• Sample


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


  The collection of data that is already in existence
• Socio-economic groups


  Division of people according to social class
• Added value


  The extra features that may be offered by a business when selling a product, such as high-quality customer service, which helps to exceed customer expectation
• Competitive advantage


  An advantage that enables a business to perform better than its rivals in the market
• Market maps or perceptual maps

  Typically a 2d diagram that shows two of the attributes or characteristics of a brand and those of rival brands in the market
• Market positioning


  The view consumers have about the quality, value for money and image of a product in relation to those of competitors
• Product differentiation


  An attempt by a business to distinguish its product from those of competitors
• Reposition


  Changing the view consumers have about a product by altering some of its characteristics
• USP (or proposition)


  The aspect or feature of a product that clearly distinguishes it from its rivals
• Complementary goods


  Goods that are purchased together because they are consumed together
• Demand


  The quantity of a product bought a given price over a given period of time
• Demand curve


  A line drawn on a graph that shows how much of a good will be bought at different prices
• Inferior goods


  Goods for which demand will fall if income rises or rise if income falls
• Normal goods


  Goods for which demand will rise if income rises or fall if income falls
• Substitute goods


  Goods that can be bought as an alternative to others, but perform the same function
• Subsidy


  A grant which is given to producers, usually to encourage production of a certain good
• Supply


  The amount of a product that suppliers make available to the market at any given price in a given period of time
• Supply curve


  A line which is drawn on a graph that shows how much of a good which sellers are willing to supply at different prices
• Equilibrium price or market clearing price


  The price where supply and demand are equal
• Excess demand


  The position where demand is greater than supply at a given price and there are shortages in the market