Save
Business Paper 1
Theme 1
Save
Share
Learn
Content
Leaderboard
Learn
Created by
Willow Hughes
Visit profile
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
See all 90 cards