Section 3

1.Marketing is identifying customer wants and satisfying them profitably.

2.A customer is a person, business or other organisation which buys goods or services from a
business.

3.Customer loyalty is when existing customers continually buy products from the same business.

4.Customer relationships is communicating with customers to encourage them to become loyal

to the business and its products.

5.Market share is the percentage of total market sales held by one brand or Business.

6.A consumer buys goods or services for personal use – not to re-sell.

7.Mass market is where there is a very large number of sales of a product.

8.A niche market is a small, usually specialised, segment of a much larger market.

9.Market segment is an identifiable sub-group of a whole market in which consumers have

similar characteristics or preferences.

1.​ Market research is the process of gathering, analysing and interpreting information about
a market.​

2.​ A product-orientated business is one whose main focus of activity is on the product itself.​

3.​ A market-orientated business is one which carries out market research to find out
consumer wants before a product is developed and produced.​

4.​ A marketing budget is a financial plan for the marketing of a product or product range for
some specified period of time. It specifies how much money is available to market the
product or range, so that the Marketing department knows how much it may spend.​

5.​ Primary research is the collection and collation of original data via direct contact with
potential or existing customers. (Also called field research.)​

6.​ Secondary research uses information that has already been collected and is available for
use by others. (Also called desk research.)​

7.​ A questionnaire is a set of questions to be answered as a means of collecting data for

market research.​

8.​ Online surveys require the target sample to answer a series of questions over the internet.​
9.​ Interviews involve asking individuals a series of questions, often face-to-face or over the
phone.​

10.​A focus group is a group of people who are representative of the target market.​

11.​A sample is the group of people who are selected to respond to a market research
exercise, such as a questionnaire.​

12.​A random sample is when people are selected at random as a source of information for
market research.​

13.​A quota sample is when people are selected on the basis of certain characteristics (such as
age, gender or income) as a source of information for market research.​
The marketing mix - is a term which is used to describe all the activities which go into
marketing a product or service. These activities are often summarised as the four Ps –
product, price, place and promotion.
14.​The USP - is the special feature of a product that differentiates it from the products of
competitors.
15.​The brand name - is the unique name of a product that distinguishes it from other brands.
16.​Brand loyalty - is when consumers keep buying the same brand again and again instead
of choosing a competitor’s brand.
17.​Brand image - is an image or identity given to a product which gives it a personality of
its own and distinguishes it from its competitors’ brands.
18.​Packaging - is the physical container or wrapping for a product. It is also used for
promotion and selling appeal.
19.​The product life cycle - describes the stages a product will pass through from its
introduction, through its growth until it is mature, and then finally its decline.
20.​Extension strategy - is a way of keeping a product at the maturity stage of the life cycle
and extending the cycle.
21.​Cost-plus pricing: The cost of manufacturing the product plus a profit mark-up.​

22.​Competitive pricing: When the product is priced in line with or just below competitors’
prices to try to capture more of the market.​

23.​Penetration pricing: When the price is set lower than the competitors’ prices in order to
be able to enter a new market.​

24.​Price skimming: A pricing strategy where a high price is set for a new product on the
market.​

25.​Promotional pricing: When a product is sold at a very low price for a short period of time.​

26.​Dynamic pricing: When businesses change product prices, usually when selling online,
depending on the level of demand.​
27.​Price elastic demand: A situation where consumers are very sensitive to changes in price.​

28.​Price inelastic demand: A situation where consumers are not sensitive to changes in price.​
distribution channel is the means by which a product is passed from the place of
production to the customer.
29.​An agent is an independent person or business that is appointed to deal with the sales and
distribution of a product or range of products.
30.​ Promotion is where marketing activities aim to raise customer awareness of a product or
brand, generating sales and helping to create brand loyalty.
31.​Advertising paid for communication with potential customers about a product to
encourage them to buy me.it.
32.​Informative advertising is where the emphasis of advertising or sales promotion is to give
full information about the product.
33.​Persuasive advertising is advertising or promotion which is trying to persuade the
consumer that they really need the product and should buy it.
34.​The target audience refers to people who are potential buyers of a product or service.
35.​Sales promotions are incentives such as special offers or special deals aimed at
consumers to achieve short-term increases in sales. A marketing budget is a financial plan
for the marketing of a product or product range for a specified period of time.
36.​Social media marketing is a form of internet marketing that involves creating and sharing
content on social media networks in order to achieve marketing and branding goals. It
includes activities such as posting text and image updates, videos, and other content that
achieves audience engagement, as well as paid social media advertising.
37.​Viral marketing is when consumers are encouraged to share information online about the
products of a business.
38.​e-commerce is the ‘online’ buying and selling of goods and services using computer
systems linked to the internet and apps on mobile (cell) phones.
39.​Dynamic pricing is when businesses change product prices, usually when selling online,
depending on the level of demand
40.​A marketing strategy is a plan to combine the right combination of the four elements of
the marketing mix for a product or service to achieve a particular marketing objective(s).
41.​
Section 1
1.​ A need is a good or service essential for living.
2.​ A want is a good or service which people would like to have, but which is not essential
for living.People’s wants are unlimited.
3.​ The economic problem – there exist unlimited wants but limited resources to produce
the goods and services to satisfy those wants. This creates scarcity.
4.​ Factors of production are those resources needed to produce goods or services. There
are four factors of production and they are in limited supply.
5.​ Scarcity is the lack of sufficient products to fulfil the total wants of the population.
6.​ Opportunity cost is the next best alternative given up by choosing another item.
7.​ Specialisation occurs when people and businesses concentrate on what they are best at.
8.​ Division of labour is when the production process is split up into different tasks and
each worker performs one of these tasks. It is a form of specialisation.
9.​ Businesses combine factors of production to make products (goods and services) which
satisfy people’s wants.
10.​Added value is the difference between the selling price of a product and the cost of
bought-in materials and components.

1.​ The primary sector of industry extracts and uses the natural resources of Earth to produce raw
materials used by other businesses.
2.​ The secondary sector of industry manufactures goods using the raw materials provided by the
primary sector.
3.​ The tertiary sector of industry provides services to consumers and the other sectors of industry.
4.​ De-industrialisation occurs when there is a decline in the importance of the secondary,
manufacturing sector of industry in a country.
5.​ mixed economy has both a private sector and a public (state) sector.
6.​ Capital is the money invested into a business by the owners.
7.​ Entrepreneur is a person who organises, operates and takes the risk for a new
business venture.
8.​ A business plan is a document containing the business objectives and important details
about the operations, finance and owners of the new business.
9.​ Capital employed is the total value of capital used in the business.
10.​Internal growth occurs when a business expands its existing operations.
11.​External growth is when a business takes over or merges with another business. It is
often called integration as one business is integrated into another one.
12.​A takeover or acquisition is when one business buys out the owners of another
business, which then becomes part of the ‘predator’ business (the business which has
taken it over).
13.​A merger is when the owners of two businesses agree to join their businesses together
to make one business.
14.​Horizontal integration is when one business merges with or takes over another one in
the same industry at the same stage of production.
15.​Vertical integration is when one business merges with or takes over another one in the
same industry but at a different stage of production. Vertical integration can be forward
or backward.
16.​Conglomerate integration is when one business merges with or takes over a business
in a completely different industry. This is also known as diversification.

1.​ Sole trader is a business owned by one person.

2.​ Limited liability means that the liability of shareholders in a company is limited to only
the amount they invested.
3.​ Unlimited liability means that the owners of a business can be held responsible for the
debts of the business they own. Their liability is not limited to the investment they made
in the business.
4.​ Partnership is a form of business in which two or more people agree to jointly own a
business.
5.​ A partnership agreement is the written and legal agreement between business
partners. It is not essential for partners to have such an agreement but it is always
recommended.
6.​ An unincorporated business is one that does not have a separate legal identity. Sole
traders and partnerships are unincorporated businesses.
7.​ Incorporated businesses are companies that have separate legal status from their
owners.
8.​ Shareholders are the owners of a limited company. They buy shares which represent
part-ownership of the company.
9.​ Private limited companies are businesses owned by shareholders but they cannot sell
shares to the public.
10.​Public limited companies are businesses owned by shareholders but they can sell
shares to the public and their shares are tradeable on the Stock Exchange.
11.​An Annual General Meeting is a legal requirement for all companies. Shareholders
may attend and vote on who they want to be on the Board of Directors for the coming
year.
12.​Dividends are payments made to shareholders from the profits (after tax) of a company.
They are the return to shareholders for investing in the company.
13.​A franchise is a business based upon the use of the brand names, promotional logos
and trading methods of an existing successful business. The franchisee buys the licence
to operate this business from the franchisor.
14.​A joint venture is where two or more businesses start a new project together, sharing
capital, risks and profits. A public corporation is a business in the public sector that is
owned and controlled by the state (government).
15.​Business objectives are the aims or targets that a business works towards.
16.​Profit is total income of a business (revenue) less total costs.
17.​Market share is the percentage of total market sales held by one brand or business.
18.​A social enterprise has social objectives as well as an aim to make a profit to reinvest
back into the business.
19.​A stakeholder is any person or group with a direct interest in the performance and
activities of a business.
Tab 3
Customer relationships is communicating with customers to encourage them to become loyal to
the business and its products.

Market share is the percentage of total market sales held by one brand or Business.

6.A consumer buys goods or services for personal use – not to re-sell.
5.​ Primary research is the collection and collation of original data via direct contact with
potential or existing customers. (Also called field research.)
6.​ Secondary research uses information that has already been collected and is available for
use by others. (Also called desk research.)
7.​ Extension strategy - is a way of keeping a product at the maturity stage of the life cycle
and extending the cycle.
8.​ Penetration pricing: When the price is set lower than the competitors’ prices in order to
be able to enter a new market.
9.​ An agent is an independent person or business that is appointed to deal with the sales and
distribution of a product or range of products.
10.​Informative advertising is where the emphasis of advertising or sales promotion is to give
full information about the product.
11.​Persuasive advertising is advertising or promotion which is trying to persuade the
consumer that they really need the product and should buy it.