Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Business > 1.1.1 The Market > Flashcards

1.1.1 The Market Flashcards

1
Q

Definition of a Market

A

Any place buyers and sellers can meet

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Definition of a Mass Market

A

Products that are aimed at a broad majority

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Definition of a Niche Market

A

Products that are aimed at a minority of a subset

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

3 Advantages of a Mass Market

A

-Larger customer base
-Low average unit cost
-High production levels

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

3 Disadvantages of a Mass Market

A

-Less unique products
-Hard to enter, Saturated Market, High Competition
-Low prices = smaller profit margin

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

3 Advantages of a Niche Market

A

-High prices = high profit margin
-Meets needs of customers , Brand loyalty
-Less competitive, Lower barriers of entry

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

3 Disadvantages of a Niche Market

A

-Higher average costs
-Lower sales volume, Less revenue
-Vulnerable to market changes, Competition catching on

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Definition of Market Size

A

Total sales in a market calculated by volume (physical quantity) or value (total spent by consumer)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Formula of Sales Volume

A

No. Products Sold
Sales Revenue / Selling Price

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Formula of Sales Revenue

A

Selling Price * No. Product Sold

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Definition of Market Share

A

The portion of a market that is controlled by a company

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Formula of Market Share

A

(Business Sales / Market Sales) * 100

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Formula of Market Growth

A

((New - Old) / Old ) * 100

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Definition of a Brand

A

A name, image or logo that helps a product stand out in a market

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

3 Advantages of a Brand

A

-Builds customer loyalty
-Charge a premium price
-Has a perceived quality

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

3 Disadvantages of a Brand

A

-High advertising costs
-Easily tarnish reputation
-Loyalty fickle in a mass or dynamic market

17
Q

Definition of a Dynamic Market

A

A market that is subject to rapid or continuous changes

18
Q

4 Key areas in Dynamic Markets

A

-Online retailing
-How markets change
-Adapting to change
-Innovation and market growth

19
Q

Definition of Online Retailing

A

Selling a product online via the internet

20
Q

6 Advantages of Online Retailing

A

-24/7 Trading
-Cheaper than physical store
-Data Collection
-Offers can be offered
-Consumers can compare easily
-Consumers can read reviews

21
Q

6 Disadvantages of Online Retailing

A

-High IT costs
-Dominated by known brands
-High competition
-Lack of social/personal contact
-Consumers may want to see product
-Consumers may find returns harder

22
Q

What does PESTLE stand for

A

Political, Economical, Social, Technological, Legal, Environmental

23
Q

3 Examples of Political

A

-Government Stability
-Tax regulations
-Trade restriction

24
Q

4 Examples of Economical

A

-Inflation
-Recession
-Unemployment
-Boom

25
Q

Examples of Social

A

-Education
-Demographics
-Health
-Ethics

26
Q

Examples of Technological

A

-Research and Development
-Production methods
-Quality
-Communication

27
Q

Examples of Legal

A

-Taxation
-H&S
-Advertising restrictions
-Employment laws

28
Q

4 Examples of Environmental

A

-Infrastructure
-Energy
-Transportation
-Air/Pollution

29
Q

5 ways to adapt to Change

A

-Meeting customer needs through research
-Invest in staff and training
-Invest in R+D, products and processes
-Innovate for first mover advantage
-Become sustainable / eco friendly

30
Q

Definition of Product Innovation

A

Adaptation or improvement of products through adding value, improved technology or better materials

31
Q

Definition of Process Innovation

A

Adaptation or improvement of processes such as just-in-time stock or production processes

32
Q

Definition of Competition

A

When two or more businesses provide goods to the same target market

33
Q

Difference between Direct and Indirect Competition

A

Direct - Using same product
Indirect - Different product that could substitute

34
Q

3 reasons why competition benefits consumers

A

-Lower prices
-Better quality products
-Better customer service

35
Q

3 reasons why competition benefits businesses

A

-Need to lower costs
-Need to differentiate
-Need to maintain quality

36
Q

Definition of Risk

A

A potential threat to a businesses success

37
Q

Definition of Uncertainty

A

A problem that has an outcome to difficult to predict (normally external)

38
Q

3 examples of Risk

A

-Loss of key staff
-Cyber threats
-Technical failures

39
Q

4 examples of Uncertainty

A

-Recession
-Natural Disaster
-Interest Rates
-Brexit

Business (42 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions