1.1.1 - the market Flashcards
1
Q
mass markets
- characteristics
- market size/market share
- brands
A
- generic products that are largely similar in form and function
- operate in huge markets where large firms can operate successfully even with a lower market share
- huge brands can develop with their name/logo representing a key point of differentiation
2
Q
niche markets
- characteristics
- market size/market share
- brands
A
- specialist products and services
- smaller market means successful firms may achieve a much higher market share
- differentiation is more likely to be achieved through product features and functions
3
Q
online retailing
A
- continued growth in online retailing has varied between different markets (e.g. grown significantly in clothing, but done the opposite in books)
- history has shown retailers who fail to switch to online retailing often fail completely
- it is vital to ensure your product or service is available to buy wherever consumers want to buy it
4
Q
how markets change
A
- markets change as a result of major external influences: political, economic, social, technological, legal and environmental (PESTLE)
5
Q
innovation and market growth
A
- innovation is a major cause of change within markets
- competing firms continually try to develop new products/services that differ from rivals, which can lead to shifts in customer loyalties
- one innovation is successful, other companies may be forced to adapt their offerings to keep up with rivals
- may companies will try to come up with their own innovations to try to benefit by leading change in the market
6
Q
adapting to change
A
- market research and an understanding of general trends is vital to successfully adapt to change
- identifying subtle changes in what consumers are looking for allows businesses to adapt their products to better suit these needs
changing earlier than rivals provides a major source of competitive advantage
7
Q
how competition affects the market
A
- competition stimulates most change and development within business
- e.g. the rivalry between Apple and Samsung
8
Q
risk
A
- a risk is quantifiable
- it can be identified
8
Q
impact of increased levels of competition
A
- pressure to drive down costs
- pressure to maintain competitive prices
- pressure to develop innovative products and services
- pressure to maintain high-quality products and services
9
Q
uncertainty
A
- they are the factors that cause risk
- it are unpredictable
