1.1.1 the market Flashcards
What is a dynamic market
A Market that is constantly changing to meet customer needs and wants
what is a niche market
subset of the main market which is aimed at consumers with a certain needs
what is the mass market
market aimed at the general population
what are some pros of mass market
-benefit from economies of scale
-high revenues
-high volume of sales
what are some pros of a niche market
-can charge premium prices
-less competiton
what are some cons of a mass market
-high competiton
-machinery is expensive
-storage is expensive
-expensive advertising as it needs to reach a large audience
what are some cons of a niche market
-dont benefit from economies of scale
-expensive production
-risky
what is economies of scale
where the average costs per unit of output decrease with the increase in the scale or magnitude of the output being produced by a firm
how does
what are some charcteristics of a niche market
-high average costs
-charge premium prices
-low sales volume
-unique specialised products
