C1O Markets Flashcards
Characteristics of perfect competition
Price takers Homogeneous products Full market info No entry/exit barriers Lots of small businesses Equal tech access
Characteristics of a monopoly
High entry barriers
Price makers
25%> share
Benefits of being a monopoly
Eos
Characteristics of an Oligopoly
Many businesses, few dominate 3-5
Differentiated products
Some entry barriers
Short price wars
Characteristics of monopolistic competition
Many relatively small businesses
Few entry barriers
Similar products but still differentiated (eg taxi’s)
Brand identity relatively weak
Not price takers - but have limited control on price
Try to offer something different via differentiation
What does b2b mean?
Business to business selling
What does b2c mean?
Business to consumer selling
What is mass marketing?
Targeting a whole market not a segment
What is a niche?
Small segment of a market, unique interest
Key features of mass marketing
Low cost operations
Heavy promo
Leading brands
Key features of a niche
High prices
Full understanding of needs
Low start up costs
Small businesses may struggle to compete
What is global marketing?
Selling goods and services overseas
Key features of global marketing
Differentiated marketing techniques based on region
High earnings
Spread risks
Eos
What is trade marketing?
B2b - business to business
What is seasonal marketing?
Seasonal variations in market demand and patterns
Types of market segmentation
Demographic
Psychographic
Geographic
Factors effecting demand
Income Fashion/trends Price of substitutes Advertising Population Government legislation
Factors effecting supply
Production costs
Weather/seasons
New technology
Legislation
Equation for PED
% change in demand
______________________
% change in price
Equation for YED
% change in demand
_____________________
% change in income
If YED elastic
Luxury good
If YED inelastic
Normal good
If YED negative
Inferior good
Objectives of market research
Discover needs Understand structure Establish stage in product life cycle Asses previous promo Monitor competition
