markets Flashcards
what is a market?
a meeting place between buyers and sellers where goods and services are exchanged, usually for money.
what is competition?
competition refers to the rivalry between firms in the same industry who aim to increase their market share. this usually occurs within markets where multiple sellers have the potential to meet the demand of consumers.
what is a global market?
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.
advantages of a global market
-higher earnings
-spread risks
-increased economies of scale
what is market share?
measures the sales of a firm relative to the market size.
how do you calculate market share?
sales of a business / total sales in a market x 100
importance of having a high market share:
-helps meet business objectives
-increased overall profitability
-able to benefit from economies of scale
-advantage over competitors
-investment into research
what is mass marketing?
mass marketing involves a business aiming products at a whole market, rather than particular parts of them.
advantages of mass marketing
-a company can produce large numbers of relatively standardized products
-untargeted marketing can be used
-low cost operations
disadvantages of mass marketing
-business must be able to produce goods on a large scale which is expensive to set up
-if demand falls, business is left with unused resources
-fierce competition so products need to be heavily differentiated from competitors
what is a trade (b2b) market?
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
what is the objective of trade marketing?
-objective is to increase demand for products/services supplied within the supply chain
-not an alternative to brand and consumer marketing, but acts as a support to traditional consumer-focused marketing strategies
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 (essentially a narrowly defined market segment)
advantages of a niche market
-can charge higher prices that customers are prepared to pay- profit margins may be larger
-can avoid competition by selling to markets that have been overlooked or ignored by other businesses
-can focus on the needs of their customers- so can provide a better product/service
-promotion costs can be kept lower- business can focus on a specific target group
-have a better survival rate in a recession as they may be able to weather difficult trading conditions
disadvantages of a niche market
-businesses that successfully exploit a niche market often attract competition
-cannot benefit from economies of scale
-hard to expand
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