1.1.1 The Market 🏪 Flashcards
What is the definition of a market ?
A place where buyers and sellers come together
How does a business make money
Selling goods and services in the market
What is marketing ?
A range of activities to help businesses sell products to the market
What are the 2 divisions of the market?
Niche and mass
What is the mass market?
Market aimed at the general population
What is the niche market?
Subset of the main market that addresses a specialist need
What does the mass market do with its products?
Product is sold to all customers in the same way
What are the pros of a mass market?
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

What are the cons of the mass-market?
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
What are the pros of the niche market?
You can charge a premium price
easier to target customers
Small production means you’re flexible and follow trends
less competitive
What are the cons of a niche market
Risky as demand is not constant
limited market for products
the economies of scale 🚫
small range of products risky ventures price elastic
Why is branding important?
It inlists loyalty to customers due to high amount of competition
What is a dynamic market?
A market that is subjected to rapid or continuous change
What is market growth?
Is it increase In demand for particular product or service over time
What are the five external factors that may influence the market?
Economic growth
innovation
social changes
legislation
demographic changes
What is economic growth and how can it affect the market?
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
What is innovation how Can it influence the market?
Innovation is new ideas to product
this may influence the market by making products that meet customer needs and wants increasing the market sales
What are social changes and how will that influence the market?
Changes in what consumers want this will determine to the business what it should make
What is legislation and how will it affect the market?
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

What are demographic changes and how would this affect the market?
Demographic changes are changes in our population
for example distribution of age will affect with what is in demand
What is E-tailing ?
Involves the transaction between customers and businesses being carried out online
What are the pros of e- tailing
24/7
Global
Lower fixed costs
Flexible
Convenient for customers
What are the cons of e - tailing ?
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
How do you respond to change ?
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
What is a competitive market?
When multiple business provide the same products or services
How does a competitive market impact customers ?
Lower prices - need to compete
More choices - need to differentiate- add values
Improved customer service - competing in non price ways
What is risk 🙃? what is it influenced by?
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
Give three examples of marketing
Identifying needs that meet customer needs
understanding the threats from competitors
charging the right price
How is market size estimated
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
Why may market share be important to know?
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
Why do businesses use brands? which market is this important in ?
I hope establish themselves and distinguish themselves from other products important in the mass market
What is a brand?
Well-known logo which is associated with the businesses performance or ability to satisfy customers
What may branding be used for?
Used to add value
and charge a premium price
develop an image
help product recognition
create customer loyalty
What is a type of dynamic market?
Online retailing
What are the positives and negatives of online retailing?
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
What are the three ways markets change? (due to dynamic markets? )
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 
How can a business adapt to change?
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
Happens to a business that does not adapt to change?
They are likely to lose market share
What is uncertainty? examples ?
when the business is unable to predict external shocks of future events
Uncertainty of exchange rate
of inflation
or the new competitors
technology
Can a business protect themselves from uncertainty?
If they take a long time mine fixed rate of interest
What are the 6 features of the global niche market?
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
