1.1.1 the market Flashcards
What is a mass market?
The term “mass market” refers to a market for goods produced on a large scale for a significant number of end consumers.
What is a niche market?
niche markets refer to particular segments within a larger market that cater to a specific, specialised group of consumers across various countries.
How can a size of a market be measured?
The size of a market can be measured through sales volume or sales value.
Sales volume is the number of products sold
Sales revenue = price x quantity sold
How to calculate market share?
Total sales in a business/ total sells in the market x100
What is a brand?
A brand is a name, image, or logo which helps one product/service stand out from its competitors
Branding is one of the key ways in which businesses achieve product differentiation
What is a dynamic market?
A dynamic market is a market that is subject to rapid or continuous changes
Those businesses which do not adapt are less likely to survive in the long run.
Businesses with monopoly power (e.g. Amazon) might not face the same dynamic pressures as businesses in more competitive markets
What are the 4 areas to consider when examining dynamic markets?
. Online retailing
. How markets change
. Innovation and market growth
. Adapting to change
What’s the difference between a risk and uncertainty?
Risk is the potential threat to business success
Uncertainty is when outcomes are difficult to predict
