1.1.1- The Markets

Question 1

Mass Market

Answer 1

market aimed at the general population

sold in the same way to all consumers

products are homogeneous so they differentiate on branding

Question 2

niche market

Answer 2

subset of the main market and addresses a specialist need

Question 3

Mass market pros and cons

Answer 3

pros- large scale produccy (EOS)

• mass marketing is easy
• large volume of sales = high rev

cons- bare comp

• homogenous products need to be differentiated
• high volume product not flexible

Question 4

Niche Market pros and cons

Answer 4

pros- premium prices can be charged

• easy to target consumers
• flexible small scale production
• less competition

cons- demand may not be constant
-high unit costs (no EOS)

Question 5

Market size

Answer 5

• volume of sales

- value- total amount spent by customers

Question 6

market share

Answer 6

proportion of a market that is taken up by a business, product or brand

sales of x/ total sales in whole market x 100

Question 7

Dynamic markets

Answer 7

one that is subject to rapid or continuous change

Question 8

Online Retailing

Answer 8

dynamic market as it is constantly changing

pros- shop always open

• orders can be taken automatically
• international markets can be easily reached
• opportunities for fast growth

cons- returns made more difficult

• issues with online security
• very competitive market

Question 9

market growth

Answer 9

technology is a massive growth market

Question 10

how competition affects the market

Answer 10

• more competition means the firm has to be more efficient
• needs to listen to consumer wants and needs (market orientated)
• needs to produce a good quality product/ service

Question 11

Frank Knight 1921

Answer 11

“real opportunity for profit is found in uncertainty”

“innovation is taking advantage of uncertainty”