1.1.1 - The Market Flashcards
What is the Market?
Where business make money by selling their goods and services in the market. e.g The housing market
What is marketing?
A range of activities which aim to sell a product.
Examples of marketing activities?
- identifying the needs & wants of customers
- designing products
- understanding competitors
- telling customers about products
- charging the right price
- persuading customers to buy the products
- charging the right price
- persuading customers to buy products
- making products available in convenient locations
What is Mass Marketing?
When a business sells the same product to all consumers and markets them in the same way. Customer needs are non specific.
How do companies do mass marketing?
- Market homogenisation
- Production
- Single marketing mix
What is Market homogenisation?
Companies ignoring market segmentation and perceiving the market as homogeneous.
How do firms achieve mass marketing through production?
Companies aim to sell as much product as possible to achieve higher economies of scale and charge the lowest price to the consumer, allowing them to charge more.
Single marketing mix
Companies standardise products, prices, promotions and distribution en mass.
Advantages of Mass Marketing
- More potential customers
- higher economies of scale
- high sales
- less prone to changing tastes
- save on marketing
Disadvantages of mass marketing
- low adaptability
- low-profit margins
- low switching costs
- high competitive
- high entry barriers
Switching costs
The cost to switch from one brand to another, whether monetary, psychological or time/effort based.
What is Niche marketing?
An effort to promote and sell products that target customers in a narrower market. Customers tend to have specific needs and wants.
