Markets And Market Forces

Question 1

What are some advantages of a mass market

Answer 1

The product appeals to many consumers
- lower cost of production
- more consumers
- easier to advertise

Question 2

What are some of the disadvantages to mass marketing

Answer 2

• high fixed capital costs
• does not enter different segments of the market

Question 3

What are some of the advantages to a nice market ?

Answer 3

• there may be few competitors
• limited demand
• can adapt products to suit customer needs
• can target specific customers

Question 4

What are some of the disadvantages to a niche market ?

Answer 4

• the small scale limits profits
• more risk
• hard to compete with larger companies

Question 5

What factors influence demand

Answer 5

• price
• consumer income
• consumer lifestyle
• advertising - seasonality
• government legislation

Question 6

What factors influence supply ?

Answer 6

• new technology
• cost of production
  -government subsidies
• external shocks