1.1.1 The market

Question 1

define market

Answer 1

where buyers and sellers come together to sell goods.

Question 2

define mass market

Answer 2

selling to a larger proportion together to sell goods

Question 3

define niche market

Answer 3

selling to a market of a smaller proportion

Question 4

pro’s mass market

Answer 4

wider target audience
lower risks
low unit costs
low market research costs

Question 5

con’s mass market

Answer 5

competition
high advertising costs
high start up costs

Question 6

pro’s niche market

Answer 6

less competition
customers forced to come to you
increased prices
clear focus
build up skills and knowledge

Question 7

con’s of niche market

Answer 7

smaller target audience
higher risk of failure
expensive market research
lack of eos
vulnerable to market changes

Question 8

define market size

Answer 8

indicates potential sales for a firm measured in terms of volume and value

Question 9

define market map

Answer 9

visual tool used by a business to identify gaps in the market using 2 variables

Question 10

define dynamic market

Answer 10

one that is subject to rapid or continuous change

Question 11

key sources of change

Answer 11

• consumer tastes and preferences
• impact of tech on what + how customers purchase
• impact of new market entrants

Question 12

factors of the market

Answer 12

demographic
tech
economy
social
environment
competition

Question 13

define online retailing

Answer 13

buying and selling goods and services over the internet

Question 14

pro’s of online retailing

Answer 14

• shop round the clock
• orders taken automatically - low costs
• stock easily withdrawn + updated
• flexible
• easy to use

Question 15

con’s of online retailing

Answer 15

• 71% customers prefer to browse online and shop in person
• issues with sending goods back
• competitive
• IT skills
• competitors aware of owners business models