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Business - Mr Dent > Markets > Flashcards

Markets Flashcards

1
Q

What is a mass market?

A
  • when the good/service appeals to a large part of the market
  • universal appeal
  • marketing to all possible consumers
  • generic brands
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2
Q

What is a niche market?

A
  • smaller segment of a larger market
  • sales will be lower but prices will be higher
  • identify the needs of the consumer
  • specialised products / services
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3
Q

What are the advantages of a mass market?

A
  • higher sales
  • large market
  • lower risk
  • costs less to produce
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4
Q

What is a market?

A

Any place where business and customers can meet to exchange goods or services

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5
Q

What are the disadvantages of a mass market?

A
  • usually lower selling price
  • competition
  • possible higher overheads
  • harder to personalise
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6
Q

What are the advantages of a niche market?

A
  • higher prices
  • repeat purchasing
  • tailored to specific consumers
  • unique
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7
Q

What are the disadvantages of a niche market?

A
  • lower sales
  • smaller market
  • possible higher costs
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8
Q

How can market size be estimated?

A

Can be calculated by the total sales of all businesses in the market

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9
Q

What is market share and how is it calculated?

A

It is a term used to describe the proportion of a market that is held by a business

Sale of a business / total sales in market X100

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10
Q

What is the difference between a dynamic market and a static market?

A

Dynamic - always changing

Static - doesn’t change

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11
Q

What makes a market change?

A

Competition
Technology
Customer needs and wants

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12
Q

Advantages of online trading

A

More convenient for the customer

Makes you a stronger competitor

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13
Q

Disadvantages of online trading

A

Doesn’t allow you to build a relationship with the customers

Harder to get repeat custom

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14
Q

What is competition?

A

Occurs when two or more businesses act independently to supply goods and services to the same group of consumers

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15
Q

What is direct competition?

A

When businesses produce similar products

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16
Q

What is indirect competition?

A

When different businesses make / sell products not in direct competition but compete for the same consumer expenditure

17
Q

Examples of direct competition

A

Similar prices
Opening hours
Customer service

18
Q

Examples of indirect competition

A

DVD shop and a cinema

Music shop and iTunes

19
Q

What is market research?

A

The action or activity of gathering information about consumers needs or preferences

20
Q

Why do businesses do market research?

A

Businesses need to make sure they do market research as it can reveal where customers are starting to lose faith in a product or service

21
Q

Primary research examples

A

Interviews
Observation
Questionnaire

22
Q

Secondary research examples

A

Internet
Trade press
Government data
Books

23
Q

Primary research advantages

A 
Personal opinion
First hand
Unique
Specific 
Up to date
Reliable
24
Q

Primary research disadvantages

A

Time consuming
Money (costs) expensive
Bias is a possibility

25
Q

Secondary research advantages

A

Already done
Cheap (mostly)
Convenient

26
Q

Secondary research disadvantages

A

Not personal
Competitors have same access to information
Unreliable
Out dated

27
Q

What is a risk

A

Can be calculated
Thought about
Weighing up pros and cons

28
Q

What is uncertainty

A

Unknown

Can’t be accounted for

29
Q

How does ICT support market research?

A

Increases amount of potential customers
Customers could see good reviews
Good reputation
Free advertising

30
Q

What is market segmentation?

A

Group of customers / consumers who have distinct characteristics

Gender
Geographical
Age
Ethnicity
Social class
Income levels
31
Q

Market mapping

A

High price

High Quality Low Quality

                      Low Price
32
Q

Why use market mapping?

A

Identify competition
Identify gaps
Possible market entry
Market research

33
Q

What are the issues with market mapping?

A 
Based on opinion
Bias
Brands marketing 
Your perception of quality 
Issues with knowledge

Business - Mr Dent (1 decks)

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