1 - The market Flashcards
What is a mass market?
When a generic product is mass produced and sold to a large group
What is a benefit of operating in a mass market?
Larger potential for growth
Can exploit economies of scale
What is a negative of operating in a mass market?
Lots of competition means they may have to spend more on marketing and product development
What is a niche market?
Where products are produced on a smaller scale and target a small segment of the market. products usually suit the needs of the consumer
What is an advantage of operating in a niche market?
Limited competition, can charge premium prices
What is a disadvantage of operating in a niche market?
Less potential customers, less potential for growth
What is an individual market?
where technology has allowed the seller to sell products custom to an individual such as personalized T-shirts
What is marketing?
activities that help a business sell products such as charging the right price and designing products that meet needs
What are the two ways a market may be measured?
Value and Volume - total amount consumers spend on a product
volume - total quantity sold
What is market share?
The proportion of a market held by a business
How do you calculate market share?
sales of a business/sales in the market x 100
What is a dynamic market?
A market that is continuously changing and must be adapted to by businesses operating in it
How many a business adapt to a dynamic market?
innovation
social trends ect
What are the benefits of operating online?
lower overheads for staffing, store locations ect
can open at all times
Cheaper marketing - cheaper to send 1000 an email and not a newsletter
customers can buy from anywhere in the world
What are the effects on consumers and businesses of competition in business?
businesses -
competitive pricing
focus on efficiency
incentive to improve
consumers -
lots of choice
good value
new products devloping
