1.1 Flashcards
market definition
place where buyers and sellers meet to exchange goods for currency
market share definition
proportion of total sales in a particular market which one or more brands are responsible
market share formula
(sales / total market share) x 100
2 ways to estimate market share
- value of market
- volume of market
difference between mass and niche
mass - delivering product with mass appeal and promoting to all (domination)
Niche - tailoring product to certain customer
Dynamic market definition
market that emerges grows changes and declines quickly.
what is competition
businesses that are providing similar goods or services
what is direct competition
two or more businesses that sell a similar product to the same people
what is indirect competition
sell different product to the same people
what is a risk
a risk occurs after a business decision
what is uncertainty
an unexpected event that is unlikely to happen
what is market orientation
a business model that focus on delivering what consumers wants, needs and requirements
what are the advantages of market orientation
- have USP
- guaranteed sales
- useful if high competition
- maintain strong relationships
what are the disadvantages of market orientation
- high costs
- can only appeal to part of the market
- can be easily copied
- have to move quick to keep up with demand
what is product orientation
a business model where customer wants are ignored and business focus on only the product and producing one they feel there is a market for
advantages of product orientation
1.quicker process than market orientation
2. cheaper than market
3. first mover advantage
4. time efficient
disadvantages of product orientation
- high chance of failure
- may be no demand
- may be more costly due to lack of knowledge of market
what is market research
the collection, analysis and presentation of data relating to the marketing and consumption of goods and services through identifying customer needs
what is primary data
data doesn’t already exist. first hand collected by business
what is secondary data
already exists, information is second hand
4 advantages of primary data
- data is specific to business
- valid for business
- not out of date
- gain competitive advantage
3 disadvantages of primary data
- time consuming
- expensive
- might not represent whole market
- requires skilled personal to carry out
3 advantages of secondary data
- quicker than primary to gather
- cheaper than primary
- easy to collate
6 disadvantages of secondary data
- can be inaccurate
- not specific to business
- may be bias data
- could be out of date
- may need adapting to fit business needs
- gin no competitive advantage
3 examples of types of technology that can be used to help with market research
- websites
- social networking
- databases
what does a market map do
help display primary data by organising it into a scale of two different sections
advantages of market mapping
- helps reveal gaps in the market
- can help to be first mover
disadvantages of market mapping
1.gaps may not be appropriate to fill as no sales for market there
2. expensive to collect data and sort out
3. time consuming
what is a competitive advantage
a condition which allows a firm to generate more sales by doing something different to competitors
what are the 10 ways to gain a comp advantage
1.price 7. advertising
2. added value 8. convenience
3. innovation 9. customer service
4. reliability 10. social objectives
5. quality
6. reputation
what is adding value
difference between cost of production and price charged
what are the 5 ways of adding value
- quality
- branding
3.USP - convivence
- design
