PAPER 1 (A)

• mass market


  a market that targets a large segment - products are standardised
• niche market


  a market that targets a small segment - customers have specific needs that aren't catered by the mass market
• brand name


  a name, sign, symbol or other feature that allows consumers to identify the goods of a business and differentiate it from rivals
• e-commerce


  conducting business transactions online
• online retailing/ e-tailing


  buying goods online
• market


  a arrangement where the buyer and seller can trade and communicate
• marketing


  process that involves identifying, analysing and anticipating customer requirements profitably
• market share


  the total sales a business has in a particular market that involves one and more other businesses
• primary/field research


  data collected first-hand for a specific purpose (involves questionnaires)
• secondary/desk research


  data that already exists for a different purpose (can be internal - stock movements/sales figures and external - international publications/rival websites)
• quantitative research


  data can be measured (financial element to it)
• qualitative research


  research based on opinions, beliefs and intentions.
• consumer panel


  group of consumers are asked for feedback of a product after a period of time
• database


  a system that stores data electronically - has features such as find and sorting.
• focus groups


  consumers are invited for a discussion about a product that is going to be launched in the market
• market orientation


  a business that places the needs of the customers at the centre of decision making
• product orientation


  a business that puts emphasis on the product itself - meaning contact with customer comes last
• market research


  collection, presentation and analysis of data relating to the marketing and consumption of goods and services
• market segmentation


  a group that has similar characteristics in a whole market (behavioural, psychographic, demographic and geographic)
• added value


  the extra features that may be offered when selling a product which helps to exceed customer satisfaction
• competitive advantage


  an advantage that helps a business to perform better than its rivals
• market/perceptual map


  a two-dimension diagram that places a brand with other rivals against two characteristics or attributes (based on opinion)
• market positioning


  the view a customer has of a product compared to other rivals (in terms of quality, value and image)
• product differentiation


  at attempt by a business to set the product apart from its rivals
• reposition


  the process by which a business attempts to change the position consumers have of their product
• USP


  the aspect or feature of a product that clearly distinguishes it from its rivals
• demand


  amount of a product consumers are willing and able to buy at any given price
• Factors affecting demand


  price of substitutes, complementary goods, advertising and branding, fashion and tastes, seasonality, demographics and external shocks (government, competition and economic climate)
• complementary goods


  goods that are purchased together because they are consumed together (milk and cereal)
• inferior goods


  income rising = demand falls (Tesco value crisps)
• substitute good


  goods that can be bought as an alternative to other but perform the same function
• normal good


  income rising = demand rises (kettle chips for example)
• supply


  amount of a product which suppliers will offer at a given price
• factors affecting supply


  cost of production, introduction of new technology, indirect taxes, government subsidy and external shocks (weather and government)
• subsidy


  a grant given to producers using to encourage production
• equilibrium price/ market clearing price

  the price which demand and supply are equal
• excess demand


  point at which supply is unable to meet demand (shortage of goods)
• excess supply


  point at which supply is greater than demand (unsold supply)
• total revenue


  money generated from sales of good (price x quantity)
• price elasticity of demand

  measures the responsiveness to a change in quantity demanded to a change in price