marketing 2 Flashcards
niche market
aimed at small group of buyers
make specialised products
larger market share
mass market
aimed at large groups of buyers
wide appeal
larger market size
makret size
total value of sales in market
market share
proportion of total market business holds
market mapping
shows extremes of two measures
e.g high quality v low quality
low price v high price
adv of market mapping
firms to see gaps in the market
bring new products in knowing that there wont be much competition
can see what price consumers will pay, help with pricing strategies
price skimming
penetration pricing
ways business can get competitive advantage
LPG
lower costs which means lower price, more sales
product innovation-bringing in new functions of an existing market, unique product altogether
good customer service-polite, knowlegeable,efficeint staff
increase repetition and how many times customers will make repeated visit
advertising
supply and demand
supply-quantity of a product that suppliers are willing to buy in given time
demand-quanitity of product that consumers want and able to buy in given time
factors reducing supply
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cost of production-cost of production increases, profit made for selling product decrease, making fall in supply
indirect taxes-taxes placed on good and services by government
if tax on good increases, increases costs for producer, reduce supply
factors increasing supply
subsidies-subsidy is money given from government to help with costs and production of a reproduce
helps with large costs and secures for supply
new technology-new innovative technology, quicker more efficient so cost savings means increase in demand
external shocks-e.g. wars, focuses on producing supply’s for armed forces increases
influences that affect demand
sad
substitiutes-demand for product can be effected by price change of substitute
e.g cost of margarine increases, demand for butter increase
advertising and branding-encourages customers to keep buying even when faced with food substitue
makes consumers loyal
Demographics-changes in popuation can lead to changes in demand e.g advances in healthcare increases goods and services demand for older generations
what happens to demand curve if there is a rise in demand
shifts to the right
what happens to demand curve if there is a fall in demand
shifts to the left
what happens to supply curve if there is a rise in demand
shifts to the right
what happens to supply curve if there is a fall in demand
shifts to the left
RISE=RIGHT
fall=left
price elastiicty of demand
how much the price change affects the demand
calcualtion=percentage change in quanitty demanded divided by chnage in price
item above 1=price elastic
item below 1=price inelastic
factors affecting PED
NPC
necessity-changes in pric dont really affect demand as we will get it no matter what the price e.g petrol, milk
product types-prodcut typesn tend to be price inelastic,individual brands are price inelastic
price elastic
change in demand is greater then a change in price
price inelastic
change in demand is low then the change in price
how can supply and demand curve show if product is inelastic
shallow demand curve
shows that demand for product is very dependent on price
income elasticity of demand
shows how demand for procust infleunced by chnage in income
