1.1.1 The Market Flashcards
What is a market?
A market is any medium in which buyers and sellers meet
What is marketing?
Marketing is the management process responsible for identifying anticipating and satisfying customer requirements profitably.
What are the 4 ps of the marketing mix?
Product, price, place and promotion
What is meant by a mass market?
A very large market with high sales volume
Define mass marketing
Mass market - where a business targets the whole market with their products rather than a specific segment
What is a niche market?
A small segment of a larger market where customers have specific needs and wants
Define niche marketing
Niche marketing - where a business targets a smaller segment of a larger market! Where customers have specific needs and wants.
What are the benefits of a mass market?
Large number of customers to target
Lower unit costs - due to higher production resulting in economies of scale
Drawbacks of a mass market
High levels of competition resulting in price based competition (lower profit margins)
Small companies find it challenging to enter or survive in the market because of the more limited economies of scale
Benefits of a niche market
Less competition - the firm is a ‘big fish in a small pond’
Builds up specialist skill and knowledge = market expertise
Profit margins are often higher
Drawbacks of a niche market
Lack of “economies of scale” (these are lower unit costs that arise from operating at high production volumes)
Risk of over dependence on a single product or market
Risk of takeover if successful
What is a dynamic market?
Dynamic markets are markets that change constantly. They are shaped by forces which change frequently. For example, Technological changes
Define contingency planning
Contingency planning is a an activity undertaken to ensure that proper and immediate follow up steps will be taken in an emergency situation.
Define online retailing
Online retailing (e-tailing) is when buyers and sellers meet through a virtual platform such as a website or eBay and buying and selling occurs. Most dynamic markets operate both face to face and online.
Define market size
Market size is how large a market is - measures in £s or number of units sold
