A LEVEL EDEXCEL BUSINESS PAPER question with answers
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)
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)
