Business Studies- Key Terms

Business

=an organisation set up in order to profitably satisfy the wants and needs of people

 Market

= where buyers and sellers meet to trade at an agreed price

 Consumer

= the end user of a product

 Market share

= a percentage of total market sales sold by one company

 Market size

= the total number of sales in a market by either value or volume

 Primary research= conducted yourself

•   •   •Qualitative data= provides you with opinions and judgements in focus groups but is more difficult and time consuming to analyse Quantitive data= information that can be statistically analysed into charts/tables Secondary research= conducted by someone else

 Gap in the Market

= occurs when no business is currently serving the needs of customers for a particular product

 Competition

= where businesses compete against each other for the same customers

 Added value

= the increased worth that businesses creates for it’s product, it’s the difference between what they pay their suppliers and the price it is able to charge for it’s product

 Market segmentation

= the splitting up of the market into groups of buyers with similar characteristics and buying habits

 Deliberate creativity

= the intentional creation of new ideas through recognised and accepted techniques

Invention= the desingning and creating of something that has not existed before or a new way of making a product