markets Flashcards
what is a market
a meeting place between buyers and sellers where goods are exchanged, usually for money.
what is market segmentation
Market segmentation is breaking down a market into sub-groups that share similar characteristics.
identifying and targeting of groups of people with similar needs and developing products or services for each of them.
how are markets segmented
demographic
geographical
phsycographic
demographic market segmentation
gender
age
geographical market segmentation
regions of the country
psychographic
culture
political voting reference
personality and emotionally behavior
what is a niche market
: 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. It is essentially a narrowly defined market segment
what is mass marketing
n:Mass marketing involves a business
aiming products at a whole market, rather than particular parts of them, for example, tomato ketchup, tea bags, ITV, Vauxhall Astra, washing
powder.
what is global marketing
:Global marketing is all about selling goods or services to overseas markets. Different marketing strategies are implemented, based on the region or country the company is marketing to.
what is a seasonal market
a market that changes with the season
e.g ice cream in summer
how does market segmentation benefit the customer
receive a product that is closer to their expectations
can help them stick to their desired principles
can fit better with their budgets and lifestyle
can be superior to the competition
can make them feel that they are getting value for money
because marketing is targeted – the consumer is aware of new features of products.
what are the benifits to a firm of market segmentation
gain greater knowledge
increase brand loyalty
higher profits
adjust to the consumer preference
identify requirements / match the needs of different groups more precisely
what is meant by demand
the amount of a product that consumers are willing and able to purchase at any given price.
what is meat by supply
the amount of a product that suppliers will offer to the market at a given price.
what is meant by equilibrium price
n: In a free market, demand and supply equal the equilibrium price. This is the price where quantity demanded is equal to quantity supplied.
what are he factors that cause the demand curve to shift
Population
Advertising
Substitutes (price of)
Income – general level
Fashion and Taste
Interest Rates
Complements (price of)
what are the factors that cause the supply curve to shift
Productivity
Indirect Taxes
Number of Firms
Technology
Subsidies
Weather
Cost of Production
what is price elasticity
measures the sensitivity of demand to a change in price. Price elasticity is always negative as the increase in price will lead to a fall in sales and, conversely, a reduction in price will lead to a rise in sales.
what is a normal good
as real incomes increase, the demand for normal goods will also increase: positive income elasticity less than one
what is meant by a luxury good
– the demand for luxury goods
will grow at a faster rate than the increase
in real income that created the change in
demand: positive income elasticity that is
greater than one. Examples are holidays
abroad, health club membership, sports cars.
what is meant by a inferior good
these are cheap substitutes of products people prefer to buy when their income is reduced (such as value line baked beans): negative income elasticity
what is meant by income elasticity
measures how sensitive demand is to change in income
what is meant by elasticity of demand
The relationship between changes in demand, changes in price and income is known as the elasticity of demand.
why do consumers need protection
Businesses understand how to manipulate customers’ behavior; they try to control price and competition in the market place and are in the position to produce goods and services that perhaps do not fully meet the expectations of the consumer.
Legislators (law makers) and consumer protection groups argue that without a strong legal framework, businesses will operate in a way that will maximise their profits with little consideration of the impact this will have on customers.
Legislation to protect consumers who enter into contracts with retailers or producers. A contract is made when goods or services are purchased.
Legislation with regard to competition policy. This is large scale policy designed to control the way that markets operate
