1.1 Flashcards
what is a market?
a place where buyers and sellers come together to exchange goods or services
-doesn’t have to be physical
what is mass marketing?
attempt to create products & services that have universal appeal
what is niche marketing?
a small segment of a much larger market, which targets specific customer needs
what are pros of mass marketing?
-large scale production means economies of scale lower average unit cost, can become more competitive due to lower prices and can get higher profit margin
-very simple, everyone targeted equally, simpler research
-large volume of scales = high revenue
-high revive can be put into research & development
what are cons of mass marketing?
-loss of competition
-products need differentiation, can be costly
-high volume production not flexible to changes in demand
niche marketing is a _____ of the main market which addresses a _______ ____/____
eg _______ ______
subset
specialist needs/wants
wedding cakes
what are pros of niche marketing?
-premium prices can be charged
-targeting customers is easier
-small scale production can be flexible & follow trends
-less competitive than mass market
what are cons of niche marketing?
-very risky as demand can be unpredictable & not constant
-higher cost per unit required
what are pros of online retailing?
-reduced costs, from not store & reduced workers
-much larger group of customers can be reached
what are cons of online retailing?
-barrier between business and customers
-can be hard to stand out, marketing can be expensive
the demand for a product determines the _______ of the ______
size
market
what can be the size of a market be measured in terms of?
volume- quantity of goods purchased
value- amount spent by customers on volume sold
market size matters because it is the basis for ________ _____
calculating trends
market growth occurs when the _____ of the market ____
size
increases
if the market is growing this may mean that there are more ___ ________
sales opportunities
it is helpful for fines to know the market share of all other _______ _____ in the market
existing firms
what is market share?
the market share of a firm/brand is the percentage that it has of market sales
if the total sales in the market remain the same but the firm _______ its own sales then its market shares will increase
increases
if the firm maintains the same _____ __ _____ when the market grows its share will fall
level of sales
what is a dynamic market?
one which implies short product life cycles and is highly competitive & is rapidly changing
eg fashion industry
what are four key factors when considering dynamic markets?
-online retailing
—> dynamic & unpredictable, markets growing fast
-how markets change
—> all markets will change & evolve overtime, can change due to affluence (income), can create greater demand, consumers becoming more socially aware, changing population
-innovation
—>new idea to market, may help gain market share or spur growth within market
-adapting to change
—> consumer tastes change, proactive, jump before you’re pushed, research can be expensive, development = expensive, advertising = expensive, research time consuming, life cycle short so have to do it all again, risky
features of dynamic markets?
-competition
-changing customer needs & wants
-technological development
what is product orientation?
when the business focuses on what it is best at producing and selling
what is the problem with product orientation?
it maintains the status quo (the business continues to do what it always does
-this does not anticipate changes in consumers needs, thus may fall behind competitors
