1.1.1 The Market

Question 1

Mass Markets

Answer 1

Characteristics: customer needs are broad

Market Size: Large market
Market Share: Businesses aim to hold 50% or more of the market

Brands: Nike, H&M, Zara, McDonald’s

Question 2

Niche Markets

Answer 2

Characteristics: Market that is specific to consumer needs

Market Size: Number of customers a business can make profit from
Market Share:

Brands: Rolex, Ferrari, Lindor

Question 3

Dynamic Markets

Answer 3

A market that is constantly changing

Question 4

How competition affects the market

Answer 4

Creates more productivity and better quality of products and services

Question 5

The difference between risk and uncertainty

Answer 5

Risk is when the probabilities of the possible outcomes are known and uncertainty is where the outcomes are unknown

Question 6

Market size

Answer 6

The total number of potential customers

Question 7

Market share

Answer 7

The % of a market a business owns