1.1 and 1.2 Flashcards
What is a mass and niche market
Mass market products are aimed at a larger group and the product has a wide appeal whereas a niche market product is aimed at a specific group of buyers
Market size and market share
Market size is the total value of sales and market share is the total proportion of the total market the business holds.
What is a dynamic market
It is where everything changes all the time so business’ have to adapt to achieve, competitors will also be able to leave and enter the market.
Benefits of online retailing
- business costs are lower, doesn’t need to have a pysical shop or hire as many staff
- customers can order 24/7 which is convienient for the customer but also allows for more selling opportunities.
- customers can easily compare prices
Drawbacks of online retailing
- increased competition
- Some customers like to see a product before they buy it.
- business’ need to make sure customers private details are protected from cyber criminals.
What are the four Ps in the marketing mix
-product
-promotion
- pricing
-place
What is product orientation
It focuses on the design, quality or performance of their products. Rather than what consumers actually want.
What is market orientation
When a business focuses on selling products that matches consumer preferences. Invests lots into market research
what is primary research
-Specific for the purpose its needed for
- labour intensive, expensive and slow
- competitors cannot benefit from it
What is secondary research
-Info from : gov publications, internet, market reports.
- much easier, faster and cheaper to get hold of
- may have errors and be out of date
-used to get an initial understanding of a market.
4 different ways to segment a market
- Demographic segments e.g Age, Gender, Socio-economic class.
- Geographic segment e.g neighbourhood, city, county, country
- Income segments e.g luxury products are aimed at high income groups.
- Behavioural segments e.g amount of use, lifestyle, hobbies and interests.
Why are market maps good
Reveal gaps in market
Shows closest competitors
Can be used to reposition there products
How can a business get a competitive advantage
Lower costs
Product innovation
Advertising/marketing
Reliability/quality
Good customer service
What’s the calculation for adding value
Price product is sold for-cost of making product
(It’s the difference between the cost of making the product and the price the customer pays)
What is demand affected by?
Substitutes
Complementary products
External shocks
Consumer income
Advertisement and branding
