Edexcel IAL Business Unit 1
mass market - ANSWER...-market aimed at general population; business sells the
same products to all consumers in the same way
niche market - ANSWER...-a subset of a larger market in which customers have more
specific needs and wants (willing to pay a higher amount)
online retailing - ANSWER...-process that allows customers to search, select and
purchase the products/services and information remotely
market share - ANSWER...-the portion of a market controlled by a particular company or
product
(sales of product/total sales in the market) x 100
dynamic market - ANSWER...-a market that is subject to change to suit customers
needs and wants
risk - ANSWER...-an action or decision which may result in an undesirable outcome
uncerntainty - ANSWER...-when businesses are unable to predict future events
(eg due to external shocks)
market research - ANSWER...-the process of collecting, analyzing, and interpreting data
about customers, competitors, and the business environment in order to improve
marketing effectiveness
primary research (field) - ANSWER...-when a business is collecting data first hand- can
be quantitative or qualitative
secondary research (desk) - ANSWER...-gathering data which already exists (online or
otherwise)
sampling - ANSWER...-the process of choosing the right members of a population to be
included in a sample and to be part of research
random sampling - ANSWER...-choosing a sample from a larger population where there
is an equal chance that any of the subjects in a population will be chosen
quota sampling - ANSWER...-when certain number of a type of person is chosen by
selection rather than being chosen by chance
, stratified sampling - ANSWER...-when the population is divided into smaller groups
which are more likely to be interested in the product being researched
product orientated - ANSWER...-a business product is product oriantated when it only
looks at the product, and production process when deciding what to make next
(inward looking)
market orientated - ANSWER...-where a business focuses on the needs of consumers
when developing products
market mapping - ANSWER...-an analystical tool that selects two variables and identfies
a business's main competitors in relation to those variables
market segmentation - ANSWER...-dividing a market into distinct groups of buyers who
have different needs, characteristics, or behaviors, and who might require separate
products or marketing programs
market positioning - ANSWER...-the process a business goes through when launching a
new product or service
segment - ANSWER...-a group of people sharing some common attribute, such as age
or occupation.
demogrpahics - ANSWER...-statistical data relating to the population and particular
groups within it
competitive advantage - ANSWER...-the ways that a company can offer consumers
greater value better than its competitors
product differentiation - ANSWER...-a positioning strategy used to distinguish their
products from those of competitors- customers must be able to percieve this difference
and be willing to pay a premium price
added value - ANSWER...-the difference between the cost of purchasing raw materials
and the price the finished goods are sold for
demand - ANSWER...-the amount consumers are willing and able to buy at each given
price
supply - ANSWER...-the amount producers are willing and able to sell at a given price
level
price elasticity of demand (PED) - ANSWER...-a measure of the responsiveness of
quantity demanded to a change in price
(% change in quantity demanded/ % change in price)
mass market - ANSWER...-market aimed at general population; business sells the
same products to all consumers in the same way
niche market - ANSWER...-a subset of a larger market in which customers have more
specific needs and wants (willing to pay a higher amount)
online retailing - ANSWER...-process that allows customers to search, select and
purchase the products/services and information remotely
market share - ANSWER...-the portion of a market controlled by a particular company or
product
(sales of product/total sales in the market) x 100
dynamic market - ANSWER...-a market that is subject to change to suit customers
needs and wants
risk - ANSWER...-an action or decision which may result in an undesirable outcome
uncerntainty - ANSWER...-when businesses are unable to predict future events
(eg due to external shocks)
market research - ANSWER...-the process of collecting, analyzing, and interpreting data
about customers, competitors, and the business environment in order to improve
marketing effectiveness
primary research (field) - ANSWER...-when a business is collecting data first hand- can
be quantitative or qualitative
secondary research (desk) - ANSWER...-gathering data which already exists (online or
otherwise)
sampling - ANSWER...-the process of choosing the right members of a population to be
included in a sample and to be part of research
random sampling - ANSWER...-choosing a sample from a larger population where there
is an equal chance that any of the subjects in a population will be chosen
quota sampling - ANSWER...-when certain number of a type of person is chosen by
selection rather than being chosen by chance
, stratified sampling - ANSWER...-when the population is divided into smaller groups
which are more likely to be interested in the product being researched
product orientated - ANSWER...-a business product is product oriantated when it only
looks at the product, and production process when deciding what to make next
(inward looking)
market orientated - ANSWER...-where a business focuses on the needs of consumers
when developing products
market mapping - ANSWER...-an analystical tool that selects two variables and identfies
a business's main competitors in relation to those variables
market segmentation - ANSWER...-dividing a market into distinct groups of buyers who
have different needs, characteristics, or behaviors, and who might require separate
products or marketing programs
market positioning - ANSWER...-the process a business goes through when launching a
new product or service
segment - ANSWER...-a group of people sharing some common attribute, such as age
or occupation.
demogrpahics - ANSWER...-statistical data relating to the population and particular
groups within it
competitive advantage - ANSWER...-the ways that a company can offer consumers
greater value better than its competitors
product differentiation - ANSWER...-a positioning strategy used to distinguish their
products from those of competitors- customers must be able to percieve this difference
and be willing to pay a premium price
added value - ANSWER...-the difference between the cost of purchasing raw materials
and the price the finished goods are sold for
demand - ANSWER...-the amount consumers are willing and able to buy at each given
price
supply - ANSWER...-the amount producers are willing and able to sell at a given price
level
price elasticity of demand (PED) - ANSWER...-a measure of the responsiveness of
quantity demanded to a change in price
(% change in quantity demanded/ % change in price)
