1.1 meeting customer needs (booklet 1) Flashcards
Marketing
range of activities a business uses to help sell its products and services
A market
a place where buyers and sellers exchange goods and services
Mass marketing
businesses target a large segment to sell to as many people as possible
Niche marketing
businesses target a small segment of a larger market, where customers have specific needs and wants
4 characteristics of a niche market
- targets a smaller segment of the market
- customers have specific needs and wants, easier to focus on customers needs
- little competition, higher prices
- larger businesses may be attracted is there is a high profit potential, therefore then unable to compete as prices will be lowered
3 characteristics of a mass market
- customers’ needs and wants are more generic and less specific
- very large scale, can mass produce, high revenues
- a lot of competition, lots of money therefore spent on marketing, e.g advertising, offering different types of service
Market size
total sales of all businesses in a market.
- unit x selling price
- revenues / market share
Market share
percentage of total sales
- sales for one business/ total market sales x 100=%
Market growth formula
difference/total x 100
Why are brands important?
to differentiate products, usp, can then charge premium prices
Mass market
Very large market where they target a large segment of the market
Niche market
a smaller segment of a larger market which targets specific needs and wants of customers
Dynamic market
A market which is continuously changing
type of dynamic market
online retailing as it continues to change and develop
examples of dynamic market
- film industry- disrupted by online streaming e.g netflix
- taxi services- disrupted by apps e.g UBER
- camera market- disrupted by phones, e.g iPhones
