Business key terms

Theme 1

Market research- gathering information to help understand the market in which the firms operates and to help understand needs and wants of the customer.

Qualitive data- numerical information

Quantitive data- information based on thoughts and opinions

Field research- gathering original data

Primary data- first hand data

Secondary data- data which has already been collected

Complementry goods- goods that are purchased together because they are consumed together

Demand- the quantity of a product bought at a given price over a given period of time

Inferior good- goods for which demand will fall if income rises

Normal good- goods for which demand will rise if income rises

Substitute- goods that can be bought as an alternative to others but have the same function

Subsidy- a grant given by the goverment to producers in order 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

Brand name- a name or design or other feature that allows consumers to identify the goods and services of a business and to differentiate them from competitors

Ecommerce- condcuting business transactions online

Online retailing- the retailling of goods online

Market- the process that allows buyers and sellers to communicate and trade

Market share- the propotion of total sales in a particulare market for which a business is responsible for

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

Added value- the extra features of a product that a business offers when selling a product at a high price

Competetive advanatage- an advantage that alows a business to perfome better than its rivals

Market maps- a diagram that shows the two atributes or characteristics of a brand and those of a rival brands

Market positioning- the view that 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 it from competitors

Unique selling point- the feature of a product that clearly makes it different from its rivals

Consumer durables- goods that can be used repeatedly over a period of time such as cars

Design mix- the range of features that are important when designing a product

Ergonomics- the study of how people interact with thier envirioment and the equipment they use

Ethical sourcing- using materials, components and services from suppliers that respect the enviroment

Product design- the process of creating a new product or service

Recyling- making use of materials that have been discarded as waste

Above the line- placing adverts using the media

Below the line- does not involve the media

Emotional branding- the practice of…