1.1.1 The Market Flashcards
Market definition
A market is any place where buyers and sellers can meet e.g. amazon.co.uk.
What is the aim of market research?
It is essential in helping the business to identify products or services that they can develop to meet the needs and wants of their customers.
What is a mass market?
In mass markets, products are aimed at broad market segments.
What is a niche market?
In niche markets, products are aimed at a subset of the larger market
What are the characteristics of a Mass Market
Products are not unique or specialised and they are aimed at a wider market segment.
Low average costs due to large scale production (economies of scale)
More affordable and higher sales volumes due to lower prices.
However, lower prices means lower profit margins.
What are the characteristics of a Niche Market?
Products are unique and specialised as they are aimed at smaller markets.
Higher average costs due to smaller scale production.
Less affordable, higher prices, and therefore lower sales volumes.
Higher prices enable higher profit margins.
What is market share?
The proportion of total sales that a business achieves compared to a market as a whole.
How do you calculate Market share?
Sales of a business / Total sales in the market (X100)
What is a brand?
A brand is a businesses logo/name/image that helps it to separate itself and stand out from it’s competitors.
What is a dynamic market?
A market that changes rapidly and continuously.
What is risk?
Any potential threats to a business.
What is uncertainty?
Something that could affect the business that cannot be predicted.
