1.1.1 - The Market Flashcards
1
Q
What is a mass market?
A
Market aimed at the general population
2
Q
What is a niche market?
A
A subset of the main market aimed a specific specialist need
3
Q
Pros of a mass market
A
- Large scale production means a lower Eos so lower unit costs
- Large volume of sales means higher revenue
4
Q
Cons of a mass market
A
- High competition
- High volume production means they may not be flexible to change
5
Q
Pros of niche market
A
- Charge a premium price
- Easier to target customers
- Small scale production means they can follow trends
- Less competition
6
Q
Cons of niche market
A
- Very risky
- Often have small range of products
- Higher unit costs so no economies of scale
7
Q
What is a dynamic market?
A
- One that is subject to rapid and continuous change
8
Q
Reasons for market change (5)
A
- Legislation
- Economic growth
- Demographic changes
- Social changes
- Innovation
9
Q
What is risk?
A
- When you can predict and manage an outcome before it happens
10
Q
What is uncertainty?
A
- Cannot be predicted so is managed after the outcome
11
Q
What is online retailing?
A
Selling products via the internet
12
Q
Pros of online retailing
A
- International selling
- Can be accessed 24/7
- No need for shop = low overheads
13
Q
Cons of online retailing
A
- Risk of fraud/scam
- Need IT skills
- Problems with returns/shipping
14
Q
What is competition?
A
When at least 2 businesses are providing goods/services to the same target market
15
Q
Affects of competition on businesses
A
- Have to change pricing strategies
- New market research
- Adapt and change products
