1.1.1 the market Flashcards
define market
where buyers meet sellers, either face to face or online
define mass market
the market that is aimed at the general population
define niche market
a subset of the main market and addresses a specialist need
mass market characteristics
a product is sold to all consumers in the same way
mass market pros
large scale production = economies of scale + lower average unit costs.
large volume of sales = high revenues.
mass market cons
lots of competition.
homogenous products need to be differentiated through marketing which can be expensive.
mass marketing process
mass marketing
high sales
mass production
lower costs and higher profits
niche market characteristics
a subset of the main market and caters to a particular segment of the market
niche market pros
charge premium price.
easier to target customers.
small scale production can be flexible and follow trends.
less competition than in the mass markets.
niche market cons
very risky as demand may not be constant.
higher unit costs so no economies of scale
market size
can be measured through:
volume of sales
value
volume of sales
physical quantity of products sold
value
total amount spent by customers
market share
the proportion % of a market that is taken by a business, product or brand
large market share
if a business has a large market share the best way to ensure growth is by boosting the size of the market as a whole
