1.1.1 Flashcards
What is Risk Management?
Process of identifying, assessing and preparing for potential threats to a businesses sucess.
What is Market share?
The proportion of a market controlled by a particular company or product.
What is Market Share formula?
Sales of business / Total sales in Market X 100
What are 2 types of competition?
Direct
Indirect
What is Indirect competition?
When businesses offer different products but compete for the same customers.
2 Advantages of targeting Niche Market?
less Competition
High Profit Margin
What is Market Growth?
It is the measurement of a change of the entire market.
What is Competition?
At least 2 businesses are providing goods/services to the same target market.
Why do markets change? 3
Changing consumer trends
Changes in demographic
Amounts of competition
What is Online Retailing?
Online retailing involves selling products via the internet.
What are 3 Advantages of Online Retailing?
Access to more customers
Longer trading hours
Convenient
What are the 3 Disadvantages with Online retailing?
High cost of website development.
Larger businesses dominate.
More competition
What is Sales Volume?
Number of products sold.
What is an uncertainty?
Uncertainties cannot be prepared for.
What is a Market?
A Place where buyers and sellers meet.
What is Marketting?
Methods a company uses to promote goods and services.
2 Disadvantages of targeting a Niche?
Less opportunity for economies of scale
Vunerable to changes n demand.
What is a Risk?
A threat to a business which can be prepared for.
What is a Dynamic Market?
A market which is subject to rapid change or continuous changes.
What are 2 ways of measuring Market Size?
Sales Volume
Sales value
How may Competition Benefit Customers? 2
Offer lower prices
Wider range of goods
What is Direct Competition?
When a business is targeting customers from the same target market with same products.
Characteristics of Niche Market? 3
High Profit margins
High average cost
Low sales volume
Characteristics of Mass Market? 3
Low average cost
Low profit margins
Standardized products.
What is Product Innovation?
Adaptation or improvements of existing products.
