Maariyahpopat

demand, supply, markets, income elasticity of demand, price elasticity of demand.

a) Factors leading to a change in demand: o changesinthepricesofsubstitutesand complementary goods o changesinconsumerincomes o fashions, tastes and preferences o advertising and branding o demographics o external shocks o seasonality

a) Factors leading to a change in supply: o changesinthecostsofproduction o introductionofnewtechnology o indirect taxes o government subsidies o external shocks

a) The interaction of supply and demand b) The drawing and interpretation of supply and demand diagrams to show the causes and consequences of price changes

a) Calculation of price elasticity of demand b) Interpretation of numerical values of price elasticity of demand c) The factors influencing price elasticity of demand d) The significance of price elasticity of demand to businesses in terms of implications for pricing e) Calculation and interpretation of the relationship between price elasticity of demand and total revenue

a)Calculation of income elasticity of demand b) Interpretation of numerical values of income elasticity of demand c) The factors influencing income elasticity of demand d) The significance of income elasticity of demand to businesses

1.1.1 The market a) Mass markets and niche markets b) Dynamic markets c) How competition affects the market d) The difference between risk and uncertainty 1.1.2 Market research a) Product and market orientation b) Primary and secondary market research data (quantitative and qualitative) c) Limitations of market research

a) Market mapping b) Competitive advantage of a product or service c) Thepurposeofproductdifferentiation d) Adding value to products/services

a) Product and market orientation b) Primary and secondary market research data (quantitative and qualitative) used to: o identify and anticipate customer needs and wants o quantify likely demand o gaininsightintoconsumerbehaviour c) Limitationsofmarketresearch,samplesizeandbias d) Use of ICT to support market research: o websites o social networking o databases e) Market segmentation

a) Mass markets and niche markets: o characteristics -market size and market share, brands b) Dynamic markets: - online retailing -how markets change - innovation and market growth, adapting to change c) How competition affects the market d) The difference between risk and uncertainty