1.1.1 The market Flashcards
1
Q
What is mass marketing?
1
A
- Firm sells into largest part of market, where there are similar products
2
Q
What is a niche market?
1
A
- Small segment of much larger market
3
Q
What is niche marketing?
1
A
- Targets smaller segment of a larger market, where customers have specific needs/wants
4
Q
What are the drawbacks of niche marketing?
3
A
- Lack of EOS
- Vulnerable to rapid market change (demand)
- Limited growth
5
Q
What are the drawbacks of mass marketing?
3
A
- Low profit margins, compete on low prices
- ^Comp
- > Loyalty (price change)
6
Q
What is a dynamic market and an example?
2
A
- Market subject to continuous/rapid changes (online retailing)
7
Q
What are the factors to consider in a dynamic market?
4
A
- Online retailing (distribution channel = unpredictable)
- Changing affluence lvl (PESTLE)
- Innovation ^market share, ^market growth
- Consumer tastes/fashion
8
Q
How does competition affect the market?
3
A
- Determines market price (oligopoly)
- ^Comp = >product market price
- > Comp = ^product market price
9
Q
What is the difference between risk and uncertainty?
2
A
- Risk = quantifiable (outcome can be predicted/measured)
- Uncertainty = can’t
