Market types Flashcards
What is a market?
A meeting place between buyers and sellers where goods and services are exchanged, usually for money
What is Market share
this measures the sales of a firm relative to the market size
How is market share calculated?
Sales of business / total sales in market x 100
Why is market share important
It might indicate that a firm is the market leader.
What is the importance of having a high market share
-Helps businesses to meet business objectives
-increases overall profitability
- able to benefit from economies of scale
- can become the brand leader
- edge over competitors
-attract new shareholders
- investment into research
What is a global market
selling goods or services to overseas markets
Name some of the advantages of global markets
- higher earnings
- spread risks
- economies of scale
- survival
- saturation of the home market
What are seasonal markets
Many markets have seasonable variations
-willhave a huge influence on the activities of businesses involved in these industries
- lines of stock are adapted and changed
- planned several months in advanced
What is mass marketing
a business aiming a product at a whole market
Name the advantages of mass marketing
- company can produce large number of relatively standardized products
- untargeted marketing can be used
- low cost operations
what are the disadvantages of mass marketing
- must produce goods on a large scale, is expensive
- business will be left with unused resources
- products need to be heavily differentiated
What is a niche market
a specalized market segment where you cater for the demand for products/servces that are not currently being supplied by the main suppliers. - a narrowly defind market segment
What are some of the advantages of a niche market
-charge higher prices/premium prices
- sell to markets that have been overlooked or ignored by other firms
-can focus on the needs of their customers
-promotion costs can be kept lower
-weather difficult trading conditions
Name some of the disadvantages of a niche market
-attarct competition
- unable to sustain two or more competiing bussineses
-cannot benefit from economies of scale
- does not allow the spreading of risks
- hard to expand
- smaller market
- harder to raise finance
what ae the characteristics of a niche market
-specific needs and preferences = customers have a specific/ unique requirements that are not met by mainstream products
-limited competition
-higher customer loyalty
-higher profit margins = premium prices
