markets

Question 1

define MARKETS

Answer 1

A meeting place between buyers and sellers
where goods and services are exchanged, usually
for money.

Question 2

define GLOBAL MARKETS

Answer 2

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.

Question 3

Advantages of GLOBAL MARKETS

Answer 3

Higher earnings – likely to be higher
earnings, if margins in overseas markets
exceed those at home.
Spread risks – by moving into new markets
risks are now spread.
Economies of scale – this move into
global markets is likely to lead to increased
economies of scale.
Survival – some businesses need to be global
to survive.
Saturation of the home market – the
business may have the finance to expand, but
be unable to do so because of competition so
they take advantage of entering a new market.

Question 4

what are trade markets

Answer 4

Trade marketing is the marketing role that
focuses on selling and supplying to distributors,
retailers, wholesalers, and other supply chain
businesses instead of the consumer.

Question 5

whats the objective of trade marketing

Answer 5

Objective of trade marketing is to increase
demand for products/services supplied within
the supply chain.

Question 6

Importance or having a high market share:

Answer 6

• Helps business to meet business objectives,
  e.g. survival, growth, profit maximisation,
  increased market share.
• Increases businesses overall profitability. Link
  between market share and profitability.
• Able to benefit from economies of scale.
• Can become the brand leader.
• Edge over competitors.
• Attract new shareholders.
• Investment into research.

Question 7

define MASS MARKETING

Answer 7

Mass marketing involves a business
aiming products at a whole market, rather than
particular parts of them, for example, tomato
ketchup, tea bags, ITV

Question 8

advantages of MASS MARKETING

Answer 8

Advantages:
-A company can produce large numbers of relatively standardised products – the cost per unit should be low so can benefit from
economies of scale.
-Untargeted marketing can be used, such
as in national newspapers and on national
television.
-Low-cost operations, heavy promotion,
widespread distribution and the development
of market-leading brands are key features.