Theme 1

Cards (90)

  • What is a dynamic market
    A market that is constantly changing
  • Key factors in a dynamic market
    • Online retailing
    • Changing trends
    • Innovation & market growth
    • Adapting to change
  • What is a mass market
    Involves meeting the needs of a large group of potential customers whose needs are more generic and less specific.
  • What is a niche market
    This involves meeting the needs of a small group of buyers who all have specific needs and wants
  • what is product orientation
    Involves developing products the business is good at making
  • What is market orientation
    Focuses on developing products to meet the needs and wants of customers
  • What is Primary research
    Research that is done first hand by the researcher for their own specific purpose - it's brand new and did not exist before
  • What is Secondary research
    Research that already exists before and was conducted by someone else
  • What is qualitative data 

    Data that involves thoughts, feelings and opinions
  • What is quantitative data 

    Numerical and statistical data
  • What is the purpose of a market map
    • Identify a gap in the market
    • Identify if business could succeed
    • identify competition
  • What is a market segment 

    Splitting up the market into groups with similar buying habits/ characteristics / interests to be able to meet their needs more effectively.
    • Gender
    • Income
    • Age
    • location
  • What is a competitive advantage
    Refers to one or more things a business does which competitors cannot or will not match
  • Ways to get a competitive advantage
    • USP
    • Improved quality
    • Branding
    • Lower cost
    • Convenience
    • Customer service
  • What is demand
    Number of people interested in buying a product backed up by their ability to pay.
  • Factors affecting demand
    • Seasonality
    • External shocks
    • Changing trends
    • Change in customers income
    • Advertising / branding
    • Demographics
  • What is supply
    the quantity of a product that producers are able and willing to deliver within a specific time period
  • Factors that affect supply
    • External shocks
    • physical constraints
    • Price
    • cost of production
    • taxes
    • government subsidies
    • development of new technology
  • What is market equilibrium
    The state of balance or equality between supply and demand
  • What is price elasticity of demand
    %change in demand / % change in price
  • What does price elastic mean 

    This is when demand for a product is responsive to a change in price.
  • What does price inelastic mean 

    This is when demand for a product is unresponsive to a change in price.
  • What are determinants of price elasticity
    • Substitute products available
    • Brand loyalty and habitual buying
    • Degree of necessity / luxury
  • Income elasticity of demand 

    % change in demand / % change in income
  • Determinants of income elasticity
    • target customer
    • Product necessity
  • What are the elements of the design mix
    • Aesthetics
    • Function
    • Cost
  • What is the product life cycle
    • Introduction
    • Growth
    • Maturity
    • Decline
  • What are extension strategies
    • Offering free gifts
    • Developing new models
    • Price reductions
    • Selling in new outlets
    • Limited editions
    • Identifying new uses for existing products
  • What are the different pricing strategies
    • Price skimming
    • Predatory pricing
    • Psychological pricing
    • Competitive pricing
    • Cost plus pricing
    • Penetration pricing
  • What is price skimming 

    Setting prices initially high and then lowering them as competitors enter the market
  • What is predatory pricing
    This is when you set prices so low that others cannot compete
  • What is psychological pricing

    This is when you set prices so they seem better value for money
  • What is competitive pricing 

    This is when you set prices based on competitors pricing with the aim to undercut the market leader
  • What is cost plus pricing
    This is when a fixed percentage is added onto the cost is takes to produce one unit of a product
  • What is penetration pricing 

    This involves setting prices initially low to gain customer interest and then increasing the price later
  • What is distribution 

    This involves getting products to the right place for customers at the right time
  • What is a distribution channel

    The methods of getting products from manufacturers to consumers
  • What is an intermediary
    Anyone between you and the consumer within the distribution channel
  • what are the different types of intermediary
    • Wholesaler
    • Retailer
    • Agent
  • What is a product portfolio

    The range of products a business sells