dynamic Market Flashcards
1
Q
Dynamic market
A
- one that is subject to rapid / continuous changes in supply and demand
2
Q
Why markets change
A
- economic growth
- nature of product
- change in fashion
-social changes
-change in technology - amount of competition
3
Q
Economic growth
A
- country’s wealth grows, sales rise
4
Q
Nature of product
A
-luxury products sales grow in boom, fall in recession
5
Q
Change in taste/fashion
A
- lifestyle changes, firms influence through marketing
6
Q
Social changes
A
- the way people live their lives, increase people back into work
7
Q
Change in technology
A
- new products/ services
8
Q
Amount of competition
A
- more firms in market, products need to keep changing
9
Q
Competitive market
A
- many businesses trying to win same customers
10
Q
3 ways firms compete
A
- price
- product range
- customer service
11
Q
Price
A
- lower price to try and win customers
12
Q
Product range
A
- launch new varieties
13
Q
Customer service
A
- helpful + friendly service to win loyalty
14
Q
Offensive marketing
A
- try and increase sales or develop new markets
- break into new markets
- invest in innovation
- acquire other businesses
- move into related markets
15
Q
Defensive marketing
A
- react to competition - try to maintain their market share
- cost cutting
- rationalisation of products by cutting unsuccessful products
- capacity reduction
16
Q
Product innovation
A
- development of new products, changes in design of established products or use of new materials
17
Q
Pro innovation
A
- gain a competitive advantage
- adding value so that higher price can be charged
- brand switching - encourage consumers to switch from other brands
18
Q
Con innovation
A
- high costs of research and development
- high risk of failure
- disruption caused to the way the business operates
- impact on sales of existing products which may be cannibalised
19
Q
Online retailing
A
- is a dynamic market - constantly changing, expanding and offering customers new products
20
Q
Pro online retailing
A
- open 24/7
- reach international markets easily
- no need for retail premises
- stock easily withdrawn- keep up with dynamic market
- flexible - cab be anywhere in world
- fast growth
21
Q
Cons online retailing
A
- high number of returns
- issue with online security
- very competitive market
- owner needs IT skills
