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A-Level Business 📈 > 1.1.1 The Market 🏪 > Flashcards

1.1.1 The Market 🏪 Flashcards

1
Q

What is the definition of a market ?

A

A place where buyers and sellers come together

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2
Q

How does a business make money

A

Selling goods and services in the market

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3
Q

What is marketing ?

A

A range of activities to help businesses sell products to the market

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4
Q

What are the 2 divisions of the market?

A

Niche and mass

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5
Q

What is the mass market?

A

Market aimed at the general population

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6
Q

What is the niche market?

A

Subset of the main market that addresses a specialist need

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7
Q

What does the mass market do with its products?

A

Product is sold to all customers in the same way

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8
Q

What are the pros of a mass market?

A

Mass marketing is straightforward As everybody is equally targeted

Large volume of cells means higher Revenue

Revenue can be put into research and development

Large-scale production means economies of scale



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9
Q

What are the cons of the mass-market?

A

There is a lot of competition

homogeneous products need to be differentiated through marketing which could be expensive

High-volume production means that your production is less flexible to demand changes

You’re going to have a low price due to competition

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10
Q

What are the pros of the niche market?

A

You can charge a premium price

easier to target customers

Small production means you’re flexible and follow trends

less competitive

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11
Q

What are the cons of a niche market

A

Risky as demand is not constant

limited market for products

the economies of scale 🚫

small range of products risky ventures price elastic

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12
Q

Why is branding important?

A

It inlists loyalty to customers due to high amount of competition

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13
Q

What is a dynamic market?

A

A market that is subjected to rapid or continuous change

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14
Q

What is market growth?

A

Is it increase In demand for particular product or service over time

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15
Q

What are the five external factors that may influence the market?

A

Economic growth
innovation
social changes
legislation
demographic changes

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16
Q

What is economic growth and how can it affect the market?

A

Economic growth- growth of the economy

This way affect the market as if your company is growing this means that people have more more people have a job this will increase the amount of disposable income allowing consumers to spend in more luxury shops however this may cause mass markets to decline

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17
Q

What is innovation how Can it influence the market?

A

Innovation is new ideas to product

this may influence the market by making products that meet customer needs and wants increasing the market sales

18
Q

What are social changes and how will that influence the market?

A

Changes in what consumers want this will determine to the business what it should make

19
Q

What is legislation and how will it affect the market?

A

Legislation are laws
Can influence on the type of products that you are selling

Or may be expensive leading to cheaper on materials affecting the products that you’re sell in your market- decrease


20
Q

What are demographic changes and how would this affect the market?

A

Demographic changes are changes in our population

for example distribution of age will affect with what is in demand

21
Q

What is E-tailing ?

A

Involves the transaction between customers and businesses being carried out online

22
Q

What are the pros of e- tailing

A

24/7

Global

Lower fixed costs

Flexible

Convenient for customers

23
Q

What are the cons of e - tailing ?

A

Customer cannot taste smell wear the product

Hard to gain trust without face to face contact

More choice for customers

Only as good as your delivery service

24
Q

How do you respond to change ?

A

Repackaged own brand products

Tesco value range looked cheap - redesigned to look more appealing

More uk based products

Offers in club cards

Launched a new supermarket

Reduced range of products in stores

Market research

Develop niche

25
Q

What is a competitive market?

A

When multiple business provide the same products or services

26
Q

How does a competitive market impact customers ?

A

Lower prices - need to compete

More choices - need to differentiate- add values

Improved customer service - competing in non price ways

27
Q

What is risk 🙃? what is it influenced by?

A

Risk- is the possibility of a business having a lower profit than taking a profit

Influenced by- economic climate Cost of raw materials Competition

Lack of job security financial risk

28
Q

Give three examples of marketing

A

Identifying needs that meet customer needs

understanding the threats from competitors

charging the right price

29
Q

How is market size estimated

A

Through value - the total amount spent by customers by buying products

and volume - this is the physical quantity of products which Are produced and sold

30
Q

Why may market share be important to know?

A

Helps us indicate who is the market leader

could influence other companies to follow the leader

may influence the strategies or objectives of the business

Help indicate whether there is success or failure

31
Q

Why do businesses use brands? which market is this important in ?

A

I hope establish themselves and distinguish themselves from other products important in the mass market

32
Q

What is a brand?

A

Well-known logo which is associated with the businesses performance or ability to satisfy customers

33
Q

What may branding be used for?

A

Used to add value
and charge a premium price
develop an image
help product recognition
create customer loyalty

34
Q

What is a type of dynamic market?

A

Online retailing

35
Q

What are the positives and negatives of online retailing?

A

Online businesses can Use secound and first cookies to gather personal information and target the right products

Online retailing is convenient 24/7

can reach more customers all over the world good for globalisation and expanding target market

Less Fixed costs- not a physical premises

Flexible to Change stock

Negatives

customer cannot taste feel try product

hard to establish loyalty without any face-to-face contact

You’re only as good as your delivery service

36
Q

What are the three ways markets change? (due to dynamic markets? )

A

Size and market - can remain quite stable for a period of time

nature of market- markets are in the state of flux meaning that the nature of the business is the subject to constant change due to dynamic consumer needs and wants

New markets- more competitive market 

37
Q

How can a business adapt to change?

A

Flexibility-To be prepared so flexible production line flexible workers that are good in every skill

Market research- business has to keep in touch with developments in the market and current customer needs in order to know what to produce

Investment - has to have enough sources finance to develop new changes for research a new product designs

Continuous improvements in increasing competitive environment - business as to continually innovate their products in order to meet up with customer needs help improve efficiency costs customer is more likely to return

developing a niche- Will work if customers are

38
Q

Happens to a business that does not adapt to change?

A

They are likely to lose market share

39
Q

What is uncertainty? examples ?

A

when the business is unable to predict external shocks of future events

Uncertainty of exchange rate
of inflation
or the new competitors
technology

40
Q

Can a business protect themselves from uncertainty?

A

If they take a long time mine fixed rate of interest

41
Q

What are the 6 features of the global niche market?

A

Excellent customer service - Customers pay a large amount expect exceptional customer service

innovation - Product expected to be highly differentiated and have a USP - meets needs

prioritising profit over market share - lucrative

Expertise In product area - employees that are highly skilled - keeping up to date with the latest developments - helps to build value for the customers

understanding of customer needs - will only have a few customers - easy to be fully understood

Emphasis on quality - wealthier customers are targeted to pay higher value for products

A-Level Business 📈 (62 decks)

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