Theme 1- keywords
Mass Market – A large market where many people buy the same type of product.
o Example: Coca-Cola sells the same soft drink to millions worldwide.
Niche Market – A small, specialised market for a specific group of customers.
o Example: Vegan protein powder is made for people who don’t consume animal
products.
Secondary Research – Using existing data collected by others.
o Example: A company reads a government report about coffee consumption instead
of doing its own survey.
Social Trends – How people's behaviour and preferences change over time.
o Example: More people prefer reusable water bottles due to environmental
concerns.
Design Mix – The key elements that make a product appealing: function, cost, and
appearance.
o Example: Apple designs iPhones to look stylish (aesthetic), work well (function), and
be high-quality (cost).
Luxury Good – Expensive items bought for comfort, quality, or status.
o Example: Rolex watches are luxury goods because they are high-end and expensive.
Market Share – A company’s percentage of total sales in an industry.
o Example: If McDonald's makes 30% of all fast food sales in the UK, its market share
is 30%.
Price Elasticity of Demand (PED) – How demand changes when price changes.
o Example: If the price of cinema tickets rises, fewer people go (high elasticity). But if
petrol prices rise, people still buy it (low elasticity).
Market Orientation – A business approach that focuses on what customers want.
o Example: A clothing brand checks fashion trends before launching new designs.
Inferior Good – A product people buy less of when their income increases.
o Example: Instant noodles – when people earn more, they might buy fresh pasta
instead.
Primary Research – Collecting new information directly from people.
o Example: A bakery asks customers what new cake flavours they’d like.
Factors Affecting Supply – Things that change how much of a product businesses can
provide.
o Example: If there’s a drought, farmers produce less wheat, and bread prices rise.
Factors Influencing PED – Reasons why demand changes when price changes.
o Example: If there are lots of alternatives to Pepsi (like Coke and Fanta), demand will
drop if its price increases.
Income Elasticity of Demand (YED) – How demand changes when income changes.
o Example: If people earn more, they buy more organic food, but buy fewer frozen
meals.
Market Mapping – A visual comparison of products based on price and quality.
o Example: A business compares Nike and Primark trainers: Nike is high price/high
quality, Primark is low price/low quality.
Market Size and Market Share – Market size is total industry sales, and market share is a
company's percentage.
, o Example: If total car sales in the UK are 2 million and Ford sells 500,000, its market
share is 25%.
Product Orientation – A business approach focusing on making the best product rather than
customer preferences.
o Example: A tech company makes a powerful gaming laptop without asking
customers what they need.
Competitive Advantage – What makes a business better than rivals.
o Example: Amazon’s fast delivery gives it an edge over other online stores.
Promotion – Activities used to increase awareness and sales of a product.
o Example: McDonald's offering "Buy One Get One Free" on burgers.
Branding – Creating a unique identity for a product or company.
o Example: Nike’s swoosh logo and "Just Do It" slogan.
Below the Line Advertising – Personalised marketing aimed at niche markets.
o Example: A luxury watch brand sending exclusive offers to VIP customers.
Above the Line Advertising – Mass advertising using media channels.
o Example: Coca-Cola running a Christmas TV advert.
Distribution – How products reach customers.
o Example: Amazon using warehouses and delivery services to send products to
customers.
Online Distribution – Selling and delivering products online.
o Example: ASOS selling clothes only through its website and mobile app.
Product Life Cycle – The stages a product goes through: Introduction, Growth, Maturity, and
Decline.
o Example: DVDs had a growth phase, then peaked, and now are in decline as people
stream movies instead.
Ways to Build a Brand – Strategies to make a brand well-known and trusted.
o Example: Apple builds its brand with high-quality products and customer loyalty.
Extension Strategy – Methods to extend a product’s life cycle.
o Example: Coca-Cola launching new flavours like Cherry Coke to keep interest high.
Cost-Plus Pricing – Adding a percentage profit to the cost of making a product.
o Example: A bakery makes a cake for £5 and sells it for £7 to cover costs and make a
profit.
Competitive Pricing – Setting prices similar to competitors.
o Example: Supermarkets selling milk at the same price as their rivals to stay
competitive.
Psychological Pricing – Pricing products to make them seem cheaper or better value.
o Example: Selling a product for £9.99 instead of £10 to make it seem cheaper.
Price Skimming – Charging a high price when a new product is launched.
o Example: Apple charging £1,200 for a new iPhone before lowering the price later.
Predatory Pricing – Setting prices very low to drive competitors out of business.
o Example: A big supermarket selling bread for 10p to force smaller bakeries to close.
Penetration Pricing – Setting a low price to attract customers and gain market share.
o Example: Disney+ offering a free trial or low prices when launching to attract users.
Boston Matrix – A tool used to analyse a company's products based on market share and
growth.
o Example: Apple’s iPhone (Star: high growth, high market share), iPad (Cash Cow: low
growth, high market share).
Mass Market – A large market where many people buy the same type of product.
o Example: Coca-Cola sells the same soft drink to millions worldwide.
Niche Market – A small, specialised market for a specific group of customers.
o Example: Vegan protein powder is made for people who don’t consume animal
products.
Secondary Research – Using existing data collected by others.
o Example: A company reads a government report about coffee consumption instead
of doing its own survey.
Social Trends – How people's behaviour and preferences change over time.
o Example: More people prefer reusable water bottles due to environmental
concerns.
Design Mix – The key elements that make a product appealing: function, cost, and
appearance.
o Example: Apple designs iPhones to look stylish (aesthetic), work well (function), and
be high-quality (cost).
Luxury Good – Expensive items bought for comfort, quality, or status.
o Example: Rolex watches are luxury goods because they are high-end and expensive.
Market Share – A company’s percentage of total sales in an industry.
o Example: If McDonald's makes 30% of all fast food sales in the UK, its market share
is 30%.
Price Elasticity of Demand (PED) – How demand changes when price changes.
o Example: If the price of cinema tickets rises, fewer people go (high elasticity). But if
petrol prices rise, people still buy it (low elasticity).
Market Orientation – A business approach that focuses on what customers want.
o Example: A clothing brand checks fashion trends before launching new designs.
Inferior Good – A product people buy less of when their income increases.
o Example: Instant noodles – when people earn more, they might buy fresh pasta
instead.
Primary Research – Collecting new information directly from people.
o Example: A bakery asks customers what new cake flavours they’d like.
Factors Affecting Supply – Things that change how much of a product businesses can
provide.
o Example: If there’s a drought, farmers produce less wheat, and bread prices rise.
Factors Influencing PED – Reasons why demand changes when price changes.
o Example: If there are lots of alternatives to Pepsi (like Coke and Fanta), demand will
drop if its price increases.
Income Elasticity of Demand (YED) – How demand changes when income changes.
o Example: If people earn more, they buy more organic food, but buy fewer frozen
meals.
Market Mapping – A visual comparison of products based on price and quality.
o Example: A business compares Nike and Primark trainers: Nike is high price/high
quality, Primark is low price/low quality.
Market Size and Market Share – Market size is total industry sales, and market share is a
company's percentage.
, o Example: If total car sales in the UK are 2 million and Ford sells 500,000, its market
share is 25%.
Product Orientation – A business approach focusing on making the best product rather than
customer preferences.
o Example: A tech company makes a powerful gaming laptop without asking
customers what they need.
Competitive Advantage – What makes a business better than rivals.
o Example: Amazon’s fast delivery gives it an edge over other online stores.
Promotion – Activities used to increase awareness and sales of a product.
o Example: McDonald's offering "Buy One Get One Free" on burgers.
Branding – Creating a unique identity for a product or company.
o Example: Nike’s swoosh logo and "Just Do It" slogan.
Below the Line Advertising – Personalised marketing aimed at niche markets.
o Example: A luxury watch brand sending exclusive offers to VIP customers.
Above the Line Advertising – Mass advertising using media channels.
o Example: Coca-Cola running a Christmas TV advert.
Distribution – How products reach customers.
o Example: Amazon using warehouses and delivery services to send products to
customers.
Online Distribution – Selling and delivering products online.
o Example: ASOS selling clothes only through its website and mobile app.
Product Life Cycle – The stages a product goes through: Introduction, Growth, Maturity, and
Decline.
o Example: DVDs had a growth phase, then peaked, and now are in decline as people
stream movies instead.
Ways to Build a Brand – Strategies to make a brand well-known and trusted.
o Example: Apple builds its brand with high-quality products and customer loyalty.
Extension Strategy – Methods to extend a product’s life cycle.
o Example: Coca-Cola launching new flavours like Cherry Coke to keep interest high.
Cost-Plus Pricing – Adding a percentage profit to the cost of making a product.
o Example: A bakery makes a cake for £5 and sells it for £7 to cover costs and make a
profit.
Competitive Pricing – Setting prices similar to competitors.
o Example: Supermarkets selling milk at the same price as their rivals to stay
competitive.
Psychological Pricing – Pricing products to make them seem cheaper or better value.
o Example: Selling a product for £9.99 instead of £10 to make it seem cheaper.
Price Skimming – Charging a high price when a new product is launched.
o Example: Apple charging £1,200 for a new iPhone before lowering the price later.
Predatory Pricing – Setting prices very low to drive competitors out of business.
o Example: A big supermarket selling bread for 10p to force smaller bakeries to close.
Penetration Pricing – Setting a low price to attract customers and gain market share.
o Example: Disney+ offering a free trial or low prices when launching to attract users.
Boston Matrix – A tool used to analyse a company's products based on market share and
growth.
o Example: Apple’s iPhone (Star: high growth, high market share), iPad (Cash Cow: low
growth, high market share).
