1.1

Question 1

What are markets?

Answer 1

it is where the buyer and seller interact

Question 2

What are Mass markets?

Answer 2

a large, unsegmented market with a mass-appeal product

Question 3

What are niche markets?

Answer 3

a smaller, specialized subset of the market that caters to customer’s specific needs and wants

Question 4

What are the characteristics of mass markets?

Answer 4

• General product
• products usually cater to a large group of people and
  their needs at once
• mass advertising can be used
• benefit from economies of scale - so lower average costs
• high sales volume

Question 5

what are the characteristics of niche markets?

Answer 5

• products are customised to consumer’s specific need and wants
• small range of products
• can charge higher prices if they want
• high-profit margins
• the market can change rapidly

Question 6

what is market size ?

Answer 6

the total amount of sales or customers that is measured according to value / volume

Question 7

what is market share ?

Answer 7

it is the propotion (%) of the total market that is owned by the business in terms of either volume or value

Question 8

Describe the market share of niche and mass markets ?

Answer 8

Niche markets : higher market shares as the market sizes are relatively smaller
mass markets : smaller market shares even when successful but larger market sizes