Markets
This term refers to the total demand for a product or service in a market.
What is market size?
The type of research that collects new, first-hand data.
What is primary research?
The process of designing a product so it stands out in customers’ minds.
What is product differentiation?
When a business focuses on what customers want before producing a product.
What is market orientation?
A market that involves businesses selling to other businesses.
What is a business-to-business (B2B) market?
The type of research that uses existing data such as reports or databases.
What is secondary research?
A visual tool that shows how products are perceived compared to rivals.
What is a market map (or perceptual map)?
When a business prioritizes its own products and production rather than customer needs.
What is product orientation?
The percentage of total market sales held by one business.
What is market share?
Research that focuses on numbers and statistics.
What is quantitative research?
The group of customers a business aims its products at.
What is a target market?
The difference between the cost of inputs and the value customers place on the finished product.
What is added value?
A market that focuses on a small group of customers with specific needs.
What is a niche market?
The risk of research not being accurate or representative.
What is sampling bias?
The method of dividing a market by factors such as age, gender, or income.
What is market segmentation?
The process of continuously adapting products and services to meet changing customer preferences.
What is innovation?
A market where products are very similar, and competition is based mainly on price.
What is a commodity market?
When businesses track competitors’ actions to better understand the market.
What is competitive market research (or competitor analysis)?
The strategy of setting a price low at first to attract customers, then raising it later.
What is penetration pricing?
This concept suggests that customers make decisions based on rational comparisons of cost and benefit.
What is the economic man theory (or rational decision making)?