Edexcel IAL Business Studies Unit 1

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

Conducting business transactions online

The retailing of goods online

• can retail their products to a group of customers who prefer to shop from home

• able to reach a wide range of customer groups.

• easier to gain customer feedback and also build relations with customers

• business does not have to be concerned about overhead costs such as rent, electricity, etc.

• Issues with online security may rise

• It's a very competitive market

• problems with spams virsues etc.

A set of arrangements that allows buyers and sellers to communicate and trade in a particular range of goods and services

• Flexibility

• Market research

• Investment

• Continous Improvement

• Develop a niche

A management process involved in identifying, anticipating and satisfying consumer requirements profitably

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.

(sales of a brand/ total sales in the market) x100

• it's an indication of the success or failure of a business or its strategy

• it allows a business to analyze its position in the market

A very large market in which products with mass appeal are targeted

• Larger customer base

• Large quantities can be sold at lower unit costs by exploiting economies of scale

• Higher sales and higher profit

• Lots of competition

• Businesses may spend a lot of money on marketing

A smaller market, usually within a large market or industry

• Easier to customer needs

• Lack of competition means small firms can charge premium prices

• may not be able to compete with larger firms and therefore may not be able to survive in the market

• small businesses relying on one product and custoemr base may not survive and are vulnerable to changing needs of consumers. Thus, they are not spreading the risk

markets that are constantnly changing; shrinking growing expanding etc. Eg: Tech industry products

Groups of customers are asked for feedback about products over a period of time

An organised collection of data stored electronically with instant access, searching and sorting facilities

Where a number of customers are invited to attend a discussion about a product led by market researchers

An approach to business which places the needs of consumers at the centre of the decision-making process

The collection, presentation and analysis of information relating to the marketing and consumption of goods and services

Part of a whole market where a particular customer group has similar characteristics

The gathering of 'new' information which does not already exist

• Data collected is custom to the business's needs and their research.

• the busienss will only have access to the data collected. it can be used to gain marketing advantages.

• Expenisve and time-consuming to gather

• the sample used may not represent the whole target population ( not genaralisable)

An approach to business which places the emphasis upon the production process and the product itself

• Questionnaires

• Open-ended

• Closed-ended

• Surveys

• Surveys

• Focus groups

• Face-to-Face

• Product trials

The collection of data about attitudes, beliefs and intentions

The collection of data that can be quantified

A person or organisation that answers questions in a survey

A small group of people who must represent a proportion of a total market when carrying out market research

The collection of data that is already in existence (also known as desk research)

• Quick, cheaper to collect

• Several sources may be used which allows data to be checked and verified.

• Data may not always meet busienss's requiremnts

• Data may be out-of-date

• Researchers may present biased information.

Division of people according to social class

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

• Bundling- package deals/ benefits

• Customer services- face to fact interaction

• Speed of response to customers

• Packeging

• Customisation

• Possible to charge higher prices

• Can be used to differentiate a product from competitors

• Can help focus on target market

An advantage that enables a business to perform better than its rivals in the market

• Pruduct Design

• Product quality

• Promotion- creative adveritising; persuasive advertising

• Customer Service

• Economies of Scale

• USP

Businesses that place the needs of the consumers at the center of decision-making process

An approach to business which places emphasis upon the production process and the product itself.

• It can anticipate and adapt to changes in the market because of its use of market information

• will be in a stronger position to meet the challenges of new competition in the market

• it can more effectively measure the rate of success of a product.

Typically a 2d diagram that shows two of the attributes or characteristics of a brand and those of rival brands in the market

• can be used to display the results of market research

• can be more relelvent for individual brands

• Does not consider other factors/ qualtities that should be analysed on the same map

• may not be detailed and does not include customer review and feedback

The view consumers have about the quality, value for money and image of a product in relation to those of competitors

An attempt by a business to distinguish its product from those of competitors

Parts of a whole market where a particular customer group have similiar charectoristics.

• Geographic and demographic Segmentation: dividing the market based on gender income age etc.

• Psychographic Segmentation: grouping customers based on attitudes, opinions, and lifestyle

• Behavioral Segmentation: Segmenting in relation to how consumers relate to a product.

• Businesses that produce different products catered to different market segments can increase revenue

• Customers are more likely to be more loyal to brands and business that produce products catered to them.

Changing the view consumers have about a product by altering some of its characteristics

The aspect or feature of a product that clearly distinguishes it from its rivals

Goods that are purchased together because they are consumed together

The quantity of a product bought a given price over a given period of time

• Population

• Advertisement

• Substitution

• Income

• Fashion

• Interest rates

• Complement costs

A line drawn on a graph that shows how much of a good will be bought at different prices

Goods for which demand will fall if income rises or rise if income falls

Goods for which demand will rise if income rises or fall if income falls

Goods that can be bought as an alternative to others, but perform the same function

A grant which is given to producers, usually to encourage production of a certain good

The amount of a product that suppliers make available to the market at any given price in a given period of time

• Price: High Price → Increase in supply → More likely to make a profit at higher prices

• Introduction to technology: Improved technology → improved efficiency in the production process

• External Shocks:

  • world events

  • weather

  • government

  • price of related goods

• Indirect Taxes

• Government Subsidies

A line which is drawn on a graph that shows how much of a good which sellers are willing to supply at different prices

The price where supply and demand are equal

The position where demand is greater than supply at a given price and there are shortages in the market

The position where supply is greater than demand at a given price and there are unsold goods in the market

The amount of revenue generated from the sale of goods calculated by: Price x Quantity

A change in price results in a greater change in demand

The responsiveness of demand to a change in price

A change in price results in a proportionately smaller change in demand

% change in quantity demanded /% change in price

• Time: PED tends to fall the longer the time because consumers are likely to turn to substitutes

• Competition for the same product: lots of competition means high PED

• Branding: Stronger the branding, the less likely consumers will turn to substitutes

• The proportion of income spent on a product

Non-essential spending or spending that is not automatic

The percentage change in demand for a product is proportionately greater than the percentage change in income (when YED>1)

The responsiveness of demand to a change in income

%change in quantity demanded/ %change in income

Where the percentage change in demand is proportionately less than the percentage change in income (when YED < 1)

• Necessities

• Luxuries

• The price of a product relative to income.(eg:- matchsticks are cheap and therefore no matter the change in a consumers income the price of the matchsticks is income inelastic)

Goods that can be used repeatedly over a period of time, such as cars and household appliances

The range of features that are important when designing a product

• Function

• aesthetics

• Costs

A product or service fit for its purpose, being capable of doing the job it is sold to do.

• Product design

• Offering long warrenties

• convenient and easy to use

• high rates of competition

• desgned with ergonomics

• has unique selling point

Product or service should stimulate people’s senses in addition to performing a function

Being able to cover costs of making a product and also genreating profit from the sale of the product

The study of how people interact with their environment and the equipment they use - often in the workplace

Using materials, components and services from suppliers that respect the environment, treat their workforce well and generally trade with integrity

The process of creating a new product or service

Making use of materials that have been discarded as waste

The using up of natural resources

Reducing the amount of resources that are discarded in the production process

Placing adverts using the media

Communication between a business and its customers where images are placed in the media to encourage the purchase of products

Any promotion that does not involve the media

The practice of using the emotions of a consumer to build a brand

Products that only contain the name of the product category rather than the company or product name

Brands created by the producers of goods or services

The elements of a business' marketing that are designed to meet the needs of the customers

• Product

• Price

• Place

• Promotion

• Communication

  • regular newsletters- regular communications with customers building a good relationship.

  • use reassuring adverts

• Customer Service - dealing with matters more promptly, providing an effective after-sales service

• Customer Incentives - Rewards, loyalty cards/schemes

• Personalization: customizing products to customers’ needs

• Preferential treatments: VIP lounges for consumers