Edexcel AS/A Level Business - Theme 1 with complete solution

Brand Name A name, term, sign, symbol, design or any other feature that allows consumers to identify the goods and services of a business and to differentiate them from those of competitors E-commerce Conducting business transactions online Online retailing The retailing of goods online Market A set of arrangements that allows buyers and sellers to communicate and trade in a particular range of goods and services Marketing A management process involved in identifying, anticipating and satisfying consumer requirements profitably Market share The proportion of total sales in a particular market for which one or more businesses or brands are responsible. It is expressed as a percentage and can be calculated by value or volume. Mass market A very large market in which products with mass appeal are targeted Niche market A smaller market, usually within a large market or industry Consumer panels Groups of customers are asked for feedback about products over a period of time Database An organised collection of data stored electronically with instant access, searching and sorting facilities Focus groups Where a number of customers are invited to attend a discussion about a product led by market researchers Market orientation An approach to business which places the needs of consumers at the centre of the decision-making process Market research The collection, presentation and analysis of information relating to the marketing and consumption of goods and services Market segment Part of a whole market where a particular customer group has similar characteristics Primary research or field research The gathering of 'new' information which does not already exist Product orientation An approach to business which places the emphasis upon the production process and the product itself Qualitative research The collection of data about attitudes, beliefs and intentions Quantitative research The collection of data that can be quantified Respondent A person or organisation that answers questions in a survey Sample A small group of people who must represent a proportion of a total market when carrying out market research Secondary research or desk research The collection of data that is already in existence Socio-economic groups Division of people according to social class Added value The extra features that may be offered by a business when selling a product, such as high-quality customer service, which helps to exceed customer expectation Competitive advantage An advantage that enables a business to perform better than its rivals in the market Market maps or perceptual maps Typically a 2d diagram that shows two of the attributes or characteristics of a brand and those of rival brands in the market Market positioning The view consumers have about the quality, value for money and image of a product in relation to those of competitors Product differentiation An attempt by a business to distinguish its product from those of competitors Reposition Changing the view consumers have about a product by altering some of its characteristics USP (or proposition) The aspect or feature of a product that clearly distinguishes it from its rivals Complementary goods Goods that are purchased together because they are consumed together Demand The quantity of a product bought a given price over a given period of time Demand curve A line drawn on a graph that shows how much of a good will be bought at different prices Inferior goods Goods for which demand will fall if income rises or rise if income falls Normal goods Goods for which demand will rise if income rises or fall if income falls Substitute goods Goods that can be bought as an alternative to others, but perform the same function Subsidy A grant which is given to producers, usually to encourage production of a certain good Supply The amount of a product that suppliers make available to the market at any given price in a given period of time Supply curve A line which is drawn on a graph that shows how much of a good which sellers are willing to supply at different prices Equilibrium price or market clearing price The price where supply and demand are equal