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Markets Flashcards

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1
Q

what is the definition of a market?

A

a place buyers and sellers come together to exchange goods and services

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2
Q

what does it mean by competition?

A

when rivalry exists between businesses in the same industry.
this is because most businesses are trying to sell similar products to the same target audience

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3
Q

what does competitive markets mean?

A

where there are a large number of buyers and sellers but they can’t affect the price of the goods and services

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4
Q

what are the types of markets?

A

-Local
-Global
-Mass
-Niche
-Trade
-Consumer
-Seasonal
-Product
-Service

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5
Q

what is a local market?

A

-is a business selling to a small geographical area
-E.G local butchers
-local markets include customer who live close to its goods and services

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6
Q

what is a global market?

A

-serving markets across the world
-E.G a multinational business such a Nestle
-Different marketing strategies are used depending on the location of the country the company is marketing too

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7
Q

what is a Mass market?

A

-refers to a market for goods produced at a large scale for end on consumers
-E.G McDonalds
-mass media is used to advertise the products

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8
Q

what is a Niche market?

A

-its where a business targets a small segment of a large market, where customers have specific needs and wants
-E.G cosmetic products
-lower starting up costs and can gain expert knowledge

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9
Q

what is trade market?

A

-selling to other business also known as business markets or B2B
-E.G price discounts
-branding is unimportant

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10
Q

what is a consumer market?

A

-selling goods and services directly to provide for customers
-E.G Costco
-selling a product to the general public

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11
Q

what is a seasonal market?

A

-sales peak at certain times of the year
-E.G B&B booking
-each have critical sky periods

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12
Q

what is a product market?

A

-where goods and services are sold to households
-E.G cars
-focus on finished goods

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13
Q

what is a service market?

A

-form of marketing that provides their customers with service also increasing brand awareness
-E.G financial consulting
-business to consumer or business to business

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14
Q

what does market analysis mean?

A

the process of gathering information about anything that has or will affect the conditions in the market

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15
Q

what does market data mean?

A

information collected by business from different sources to help the business understand market size, market share and market trends

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16
Q

what is market size?

A

the total value or quantity of demand in a specific market

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17
Q

what is market share?

A

the proportion of sales a business has achieved expressed as a percentage

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18
Q

what is market trends?

A

changes and development in the buying and selling products and services in a market

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19
Q

what is the calculation for market share?

A

sales of a business
————————— X 100%
total market size

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20
Q

what is the definition of market segmentation?

A

-identifying and targeting groups of people with similar needs and developing products or services for each of them.
-a market segment is any subgroup of a larger market

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21
Q

what are the 3 types of market segmentation?

A

-demographic
-psychographic
-geographic

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22
Q

what is demographic market segmentation?

A

-age
-social class
-gender
-income

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23
Q

what is psychographic market segmentation?

A

allows targeting of groups on personality and emotionally based behaviours

24
Q

what is geographic market segmentation?

A

regions of the country-rural,urban,suburban

25
Q

what are the advantages of market segmentation to CUSTOMERS?

A

-helps their belief
-helps fit their wants and needs
-easier to find

26
Q

what are the drawbacks of market segmentation to the CUSTOMER?

A

-more expensive products
-less variety
-more excluded

27
Q

what are the benefits of market segmentation to the BUSINESS?

A

-more sales as in target
-experts in segment
-brand loyalty

28
Q

what are the drawbacks of market segmentation to the BUSINESS?

A

-harder to target
-higher costs
-time consuming

29
Q

what are market structures?

A

market structures is best defined as the organisational and other characteristics of a market

30
Q

what is perfect competition?

A

-large number of firms
-homogenous (nature of product)
-easy to enter and leave market
-price takers
-N/A price or non price competition
-equal access to technology
E.G agriculture

31
Q

what is monopolistic competition?

A

-large number of small scale sellers
-differentiated (nature of product)
-easy to leave market
-ability to fix their own price
-non price/price competition
-few barriers to entry
E.G hairs cuts

32
Q

what is oligopoly?

A

-few firms (3-6)
-differentiated (nature of product)
-barriers to entry
-very high pricing
-tend to avoid price competition
-strong brand identity
-E.G banking

33
Q

what is monopoly?

A

-one firm
-one option of products
-erect barriers
-price makers
-N/A price or non-price competition
-a single product in market
E.G royal mail

34
Q

why do consumers need protection?

A

-credit agreements
-data protection
-reduced costs

35
Q

what is the definition of demand?

A

the quantity of a good or service that consumers are willing and able to buy at a given price in a given time period

36
Q

what is the relationship between price and quantity demanded?

A

high price= low quantity
low price= high quantity

37
Q

what are the factors that cause the demand curve to shift?

A

Population
Advertising
Substitutes
Incomes
Fashion/trends
Interest rates
Complements

38
Q

what is the definition of supply?

A

the quantity of a product that produces is willing and able to supply onto the market at a given time period

39
Q

what is the relationship between price and quantity supplied?

A

as price increases, the quantity supplied would increase

40
Q

what are the factors that cause the supply curve to shift?

A

Productivity
Indirect taxes
Number of firms
Technology
Subsidies
Weather
Costs of production

41
Q

what is the definition of price elasticity of demand? (PED)

A

PED measures the responsiveness of demand to a change in price

42
Q

what is the importance of PED?

A

-business managers need to know the impacts of changes in price on likely levels of demand

-they need to know how sensitive the demand for their goods or services is to a change in price

43
Q

what are the 2 types of PED?

A

-price elastic
-price inelastic

44
Q

what is price elastic?

A

demand changes at a greater rate than price

-prices goes up, demand falls=total revenue falls

-price falls,demand increases=total revenue increase

45
Q

what is price inelastic?

A

demand changes at a lesser rate then price

-price goes up,demand falls a little bit=total revenue increase

-price goes down,demand increases a little bit=total revenue falls

46
Q

how can businesses make demand for their goods and services more inelastic?

A

-reduce competition
-increase price
-location

47
Q

what is the definition of income elasticity of demand? (YED)

A

YED measures the responsiveness of demand to the change in income

48
Q

what is income elastic?

A

a change in income causes a greater change in the quantity demanded

49
Q

what is income inelastic?

A

a change in income causes a lesser change in the quantity demanded

50
Q

what is the importance of YED?

A

it helps managers decide how sensitive their product is in terms of demand when income changes

51
Q

what are the 4 types of goods?

A

-inferior goods
-normal goods
-normal necessity
-luxury goods

52
Q

what are inferior goods?

A

-this type will see a rise in demand when income falls
-however if income rises, people will switch from label products to high end products
-E.G. Primark, supermarkets

53
Q

what are normal goods?

A

-when real incomes of customers increases, the demand for this type of good will increase
-E.G. exam cars, furniture

54
Q

what are normal necessity?

A

-something humans need in order to survive but tends to be less sensitive to change in real income
-E.G. toilet paper

55
Q

what is luxury goods?

A

-this good is a type of normal good but tends to be more sensitive to change in real income
-E.G. -income^,gym member
ship (vice versa)

Business (9 decks)

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