A market is any place where buyers and sellers meet to conclude a transaction.

What is the aim of marketing ?

The aim of marketing is to help identify, anticipate, and satisfy consumer needs and wants profitably.

Needs are considered to be essential , such as shelter or food.

Define the term wants .

Wants are desires which are non-essential , even if consumers consider them to be essential, such as designer trainers or foreign holidays.

Define the term product orientation .

Product orientation is an approach to marketing that focuses on the characteristics of the product rather than the needs of the consumer.

Define the term market orientation .

Market orientation is an approach to marketing that focuses on the needs of consumers , using this information to design products that meet their needs.

Define the term niche market .

Niche markets are where products are aimed at a clearly-defined subset of the larger market.

Define the term mass market .

A mass market is one where products are aimed at broad market segments .

What is a market segment ?

A market segment is a group of consumers who share similar characteristics , such as age, lifestyle, or income.

True or False? Niche markets typically have low average costs due to large-scale production.

False . Niche markets typically have high average costs due to small-scale production.

Why do niche markets rarely remain small?

Profitable niche markets rarely remain small for long as their potential attracts competition which increases sales volumes.

Define the term market share .

Market share is the percentage of the whole market that the business sales of a product achieve.

What does an increase in market shar e indicate?

An increase in market share indicates that a business has made effective use of marketing strategies to increase sales and gain customers from competitors .

Define the term market growth .

Market growth is the percentage increase in the overall size, value or volume of a market over a period of time.

True or False? A negative market growth rate indicates an expanding market.

False . A negative market growth rate indicates a contracting market .

Give one way used to measure market size ?

Common ways to measure market size include: Sales volume Sales revenue Number of customers

Define the term sales volume .

Sales volume is the number of products sold.

Give one reason for market growth .

Reasons for market growth include: Increased demand for products Advances in technology Population growth Changes in tastes and preferences Favourable economic conditions Media attention

IBBusinessDPBusiness ManagementHLFlashcards4. Marketing4.1 Introduction to Marketing

4.1 Introduction to Marketing (DP IB Business Management)

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What is a market?
A market is any place where buyers and sellers meet to conclude a transaction.
What is the aim of marketing?
The aim of marketing is to help identify, anticipate, and satisfy consumer needs and wants profitably.
What are needs?
Needs are considered to be essential, such as shelter or food.
Define the term wants.
Wants are desires which are non-essential, even if consumers consider them to be essential, such as designer trainers or foreign holidays.
Define the term product orientation.
Product orientation is an approach to marketing that focuses on the characteristics of the product rather than the needs of the consumer.
Define the term market orientation.
Market orientation is an approach to marketing that focuses on the needs of consumers, using this information to design products that meet their needs.
Define the term niche market.
Niche markets are where products are aimed at a clearly-defined subset of the larger market.
Define the term mass market.
A mass market is one where products are aimed at broad market segments.
What is a market segment?
A market segment is a group of consumers who share similar characteristics, such as age, lifestyle, or income.
True or False?
Niche markets typically have low average costs due to large-scale production.
False.
Niche markets typically have high average costs due to small-scale production.
Why do niche markets rarely remain small?
Profitable niche markets rarely remain small for long as their potential attracts competition which increases sales volumes.
Define the term market share.
Market share is the percentage of the whole market that the business sales of a product achieve.
State the equation used to calculate market share.
Formula.
$Market share = \frac{Sales of a business or product}{Market size} \times 100$
What does an increase in market share indicate?
An increase in market share indicates that a business has made effective use of marketing strategies to increase sales and gain customers from competitors.
Define the term market growth.
Market growth is the percentage increase in the overall size, value or volume of a market over a period of time.
State the formula used to calculate market growth.
Formula.
$Market growth = \frac{This year' s market sales - Last year' s market sales}{Last year' s market sales)} \times 100$
True or False?
A negative market growth rate indicates an expanding market.
False.
A negative market growth rate indicates a contracting market.
Give one way used to measure market size?
Common ways to measure market size include:
- Sales volume
- Sales revenue
- Number of customers
Define the term sales volume.
Sales volume is the number of products sold.
What is the formula used to calculate sales revenue?
Formula.
$Sales revenue = Price \times Quantity sold$
Give one reason for market growth.
Reasons for market growth include:
- Increased demand for products
- Advances in technology
- Population growth
- Changes in tastes and preferences
- Favourable economic conditions
- Media attention

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1. Introduction to Business Management

2. Human Resource Management

3. Finance & Accounts

4. Marketing

5. Operations Management

6. The Business Management Toolkit

6.1 The Business Management Toolkit

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