Business 1.1 Flashcards
Market size def
Total value of sales in a market over a certain period
Market share def
Proportion of the total market the business holds- their sales/ total sales in the market
Benefits of online retailing
Costs lower as no physical shop
Customers can order anytime from anywhere
Customers can compare prices
Drawbacks of online retailing
More competition as customers can shop around easily
Customers like to see before they buy
Personal details needed to be protected from cyber hacks
4ps of the market
Product
Price
Promotion
Place
What is a risk?
Probabilities of things going wrong are already planned
What is an uncertainty?
Unexpected events- difficult to predict when they happen
Ex of primary research
Focus groups, questionnaires or surveys, interviews
Ex of secondary research
Government publication’s, internet sources, magazines
What can a market map show?
Gaps in the market, closest competitors, how much customers expect to pay
However,
Simplistic
Opinion based
Ways to gain a competitive advantage?
Lower costs, innovate, adverting, product differentiation, reliability and quality, good customer service, convenience
EQ for added value
Price the product is sold for-cost of making the product
Increase selling price or reduce costs to make the product
