markets Flashcards
local market
- normally trades within 10 mile radius
- Knowledge of local market
- butchers e.g.
global market
- trades globally
- May vary product/ service to meet demand
mass market
- targets the whole market
- heavy promotion
- Fierce competition
- Economies of scale
niche market
- Targets one specific segement
- Higher price can be charged
- Fully understand their consumers needs
trade market
- Sells from business to business
- Raw material,services, finished goods
Features of a monopoly
- One dominatant seller
- strong barriers to entry
- no substitutes
- can raise prices indefinitely
- doesnt advertising
- price setter
Oligopoly
- few firms
- barriers to entry
- interdependent on each other
- non price competition - advertising
Monopolistic competition
- Many sellers of a particular product
- Product differenation
- small sellers
- Huge advertising
- Some degree of price control
Perfect competition
- The same product
- Large number of sellers and buyers
- full knowledge of market
- Price takers
why do consumers need protection
- protect against harmful products or services
- Make sure products and services are to the advertised standard
- ## customers are often ill-informed about products and services
what is demand
How popular the product or service is
Supply
How much of the product or service is available
What is demand and supply equillirbrium
when demand and supply are the same
Importance of demand
- Can raise the price if a product is popular
vice versa
importnace of supply
- rarity raises price vice versa
What can lead to a change in demand
- change in tastes
- advertising
- price flucation in related or subsidary goods
- disposable income
what can lead to a change in supply
- changes in production
- absenteeism
- poor capacity utilisation
How does demand effect price and quantity
- more demand - less quantity
- more demand - higher price
How does supply effect price
- more supply - lower price
What is an inferior good
- lower quality good
- Drops in popularity when income rises
luxury good
higher quality
popular when there is lots of disposable income
