1.1.1 The Market Flashcards
Define the market
Any place that buyers and sellers will come together to exchange goods and services. There Will normally be a exchange of money at a set price
Define mass market
A product is targeted at a wide rang of people. Market is not segmented. Products appeal to a wide range of customers. Mass media is used to advertise the product.
Define niche market
Identifying small , currently unsatisfied gaps in the market. Distinct characteristics. Can often charge higher prices
How do you work our market size
Number is units sold x price
How do you work out market share
Sales of one firm / total market sales x 100
What is a brand
A product produced by one business using specific name . Creation of an identity that distinguishes that firms and its product from other firms
What are the benefits to a business or building a brand
Brand extension
Brand value
Brand personality
What are dynamic markets
Markets that are always changing due to social trends , changes in technology , competitive environment, consumer trends
Business have to adapt their marketing in response to these changes
A business that fails to keep up with trends in the market will soon lose competitiveness
What is online retailing
The process of buying and selling goods and services over the internet , also KNOW as e commerce
What is the advantages of online shopping
Can shop 24/7
Breaks down geographical barriers
Lower over head cost
Access to a wider market
What is market growth
Is the percentage increase I the size of the market
What is the calculation for market growth
Change in size of market / original size x 100
What is innovation
Is when a new idea or invention is launched onto the market normally with a view to financial gains
Competition will affect the market in many ways , these include
- the price a business is able to charge
- the buying power of the customer
- the selling power of the supplier
- availability of substitutes
- willingness and ability of new firms to enter the market
