1.1The Market Flashcards
Discussion about types of market
what is a market
a place where buyers and sellers come together to exchange products
what is a mass market
products which are aimed at the broader segment of the market
what is a niche market
is a market that caters to customers specifc wants and needs
pros of mass market
higher profit margin
economies of scale
cons of mass market
increased competition
products are less unique
pros of the niche market
you can build specialist skills
higher prices can be charged
cons of a niche market
higher unit costs
lower sales volume
Market share
the proportion of total market sales a business has control over
market share formula
Business sales/ market total sales x100
what is a brand
It is a design,logo or name put ona product to stand out from rivals
adding value
the difference between the final price and the cost of production of a product
Dynamic market
a market that is constantly changing
What is risk
events which can be planned and calculated for
what is uncertainty
unexpected events which cannot be prepared for
