14. How a business activity is affected by the market

Question 1

Consumer goods and service market

Answer 1

Affected: Promotion
Example: Mainstream advertising for B2C eg Belfast Telegraph

Question 2

Capital goods market

Answer 2

Affected: Promotion
Example: Advertising in trade brochures for B2B eg Farmers weekly

Question 2

Labour Market

Answer 2

Affected: Cost
Example: Affected by supply and demand of HR eg If engineers are in short supply it will cost more

Question 3

Mass Market

Answer 3

Affected: Product
Example: Undifferentiated (all the same) so businesses must compete on price

Question 3

Niche Market

Answer 3

Affected: Product
Example: Differentiated (unique) so must compete on USP (unique setting point)