Markets Flashcards
What is the def of a Market?
A meeting place between buyers and sellers where goods and services are exchanged, usually for money
What is the def of a Global Market?
Selling goods or services to overseas markets. Different marketing strategies are implemented to suit the market and culture of the country
What are the advantages of a Global Market?
Higher earnings
Spread risks
Economies of scale
Survival
Saturation of the home market
What are Economies of Scale?
The reduction in average costs of
production that occur as a business increases
its scale of production.
What are Trade Markets?
Focuses on selling and supplying to distributors, retailers, wholesalers and other supply chain business instead of to the consumer
What is the def of Mass Market?
A business aiming a product at a whole market, rather than particular parts of them for example tomato ketchup, tea bags etc
What are the advantages of Mass Markets?
Business can produce large numbers of relatively standardised products
Untargeted marketing can be used
Low-cost operations
What are the disadvantages of Mass Markets?
Business must be able to produce goods at a large scale
If demand for the product falls businesses will be left with unused products
Products need to be heavily differentiated
What is the def of Market Share?
Sales of business
—————————– x 100
Total sales in a market
Using this can show if a business is a market leader
Why is it important to have a high Market Share?
Helps business to meet its business objectives
Increased market share
Increased business overall profitability
Able to benefit from economies of scale
Can become the brand leader
Edge over competitors
Attract new shareholders
Invest into research
What are Seasonal Markets
Many markets have large seasonable variations for example ice cream in summer and diet plans in January
What is the def of Niche Markets?
Special market segment, where you cater for the demand for products or services that are not currently being supplied by the main suppliers
What are the advantages of Niche Markets?
Able to charge higher prices
Able to sell to markets that have been overlooked or ignored by other businesses
Able to focus on the needs of their customers
Promotion costs can be kept lower
Niche markets may have characteristics which enable them
to weather difficult trading conditions
What are the disadvantages of Niche Markets?
Business that successfully exploit niche markets often attract competition
Often unable to sustain two or more competing businesses
Cannot benefit from economies of scale
Does not allow the spreading of risks
Tend to face bigger and more frequent swings in customer spending as there is a small number of customers
Hard to expand
Limited profit as it is a smaller market
Harder to raise finance
