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Year 12 > Markets > Flashcards

Markets Flashcards

1
Q

What is a market

A

A market is a place where buyers and sellers can exchange or transact goods and services.

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2
Q

What is competition

A

The contest between organizations that provide similar products or services or that target the same audience of consumers. Businesses compete to convert and retain customers, increase revenue and gain more market share.

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3
Q

What are the types of markets

A

Niche market
Mass market
Trade market
Consumer market
Seasonal market
Local market
Global market
Product/service market

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4
Q

What is a niche market

A

A niche market is a specialized market segment where you cater
for the demand for products/services that are not currently being supplied by the main suppliers

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5
Q

What is a mass market

A

Mass marketing involves a business aiming products at a whole market rather than particular parts of them

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6
Q

What is a trade market

A

Focus on firms, distributors, retailers and wholesalers rather than consumers with the goal of increasing demand with supply chain partners.

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7
Q

What is a consumer market

A

Focuses on consumers, when individuals purchase products or services for their own personal use.

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8
Q

What is a seasonal market

A

the process of marketing products or services during special points of the year.

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9
Q

What is a product/service market

A

Product market is a market where they sell products and service markets is a market where they sell services.

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10
Q

What is a local market

A

Where goods and services are sold locally as firms are setup there (domestic)

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11
Q

What is a global market

A

Global marketing is all about selling
goods or services to overseas markets

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12
Q

What is market segmentation

A

Any subgroup of a larger market, Business’ divide their target markets into segments that have common features/ similar characteristics

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13
Q

How are markets segmented

A

Psychographic segmentation
Demographic segmentation
Geographical segmentation

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14
Q

What is Psychographic segmentation

A

Based on characteristics, needs & wants, age, ethnic background, gender, income and occupation

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15
Q

What is demographic segmentation

A

Based on consumer personality and emotionally based behaviour.

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16
Q

What is geographical segmentation

A

Based on geographic area, climate, population densities.

17
Q

What is the importance/ advantages of market segmentation to firms

A

Firms gain greater knowledge about its customers

Can identify requirements/Match the needs of different groups more precisely

Can target their advertising therefore maximising it’s efforts

Higher profits

Increase brand loyalty as their needs are being met

18
Q

Types of competition

A

Competition ranges from:

Perfect competition
Monopolistic competition
Oligopoly competition
Monopoly competition

19
Q

What are the characteristics of perfect competition

A

Assumes all products are the same (homogenous)

Consumers have perfect knowledge of the market

No barriers to entry

Large number of small firms

Individual firms are price takers no influence of price of good

Example agriculture

20
Q

What the characteristics of monopolistic competition

A

Products are differentiated from others through branding & marketing mix

Few barriers to entry

Relatively large numbers of small firms compete

Example restaurants

21
Q

What are the characteristics of oligopoly competition

A

Business tries to differentiate products

Most common type of market

Dominated by small number of large firms

Significant barriers to entry: high startup costs, high advertising

Prices remain stable

Collusion between business to stop new entrants

Example supermarkets

22
Q

What are the characteristics of monopoly competition

A

Only a single seller of a unique product

No competition the firm is the whole market

High barriers: high costs etc.

Potential abuse of the position

23
Q

Why do consumers need protection from exploitation of firms

A

Consumers need protection as some organisations resort to unfair tactics in order to increase sales and revenue and reduce costs

24
Q

What do consumers need protection from

A

Poor quality/unsafe goods - Firms seek to reduce costs this can lead to unsafe products.

substandard services - A substandard service or product is unacceptable because it is below a required standard, firms do this to reduce costs.

misleading information - When advertising some ads can be be misleading and false information

pressurised selling tactics - Some businesses charge a large amount of interest to pressure customers into signing an agreement to purchase goods they don’t want

25
Q

What is demand

A

demand is the quantity of a good that consumers are willing and able to purchase at various prices during a given time

26
Q

What is supply

A

supply is the amount of a resource that firms and producers are willing and able to provide to the marketplace or to an individual

27
Q

What is the equalibrium

A

In a demand and supply diagram is the point when the demand and supply is equal.

28
Q

Why is demand and supply important in markets

A

Supply and demand have an important relationship because together they determine the prices and quantities of most goods and services available in a given market.

29
Q

What is a competitive market

A

Competitive market - A competitive market is a market where there are numerous producers that compete with one another to provide goods and services for consumers wants and needs

30
Q

What is the market share

A

This measures the sales of a firm
relative to the market size

31
Q

Equation for market share

A

Sales of business/Total sales in the market x100

32
Q

Factors of Supply

A

Productivity
Indirect Taxes
Number of Firms
Technology
Subsidies
Weather
Cost of Production

33
Q

Factors of demand

A

Structure of Population
Advertising
Substitutes (price of)
Income – general level
Fashion and Taste
Price level
Complements (price of)
Expectation of consumer

34
Q

What is the role of an ombudsman service

A

If a customer has a complaint that in their view has not been satisfactorily
dealt with by the business concerned, the next step in finding redress
might be the Ombudsman Service.

35
Q

Give the range of competition in order

A

Perfect - Monopolistic - Oligopoly - monopoly

36
Q

What are the pros & Cons for niche markets to firms

A

+
Charge higher prices
Low competition
Promotion costs can stay low

-
Firms that exploit a niche market often bring along competition.
Cannot benefit from economies of scale.
Limited profit as of market size

37
Q

Benefits to customer of market segmentation

A

Receive a product closer to their expectations

Make them feel that they are getting there value for money

Because marketing is targeted the consumer is aware of new products/ new features

Year 12 (41 decks)

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