Meeting Customer Needs - 1.1 Flashcards
What is a Market?
A marker is any place either real or virtual where buyers and sellers come together to trade goods and services for money.
What is Market Share?
The proportion of a market a single business or brand is responsible for.
What is the Formula for Market Share?
Market share = (sales of one brand/total sales in the market) x 100
What are mass markets?
Markets where goods are produced in large quantities. Goods are made on a very large scale.
What are niche markets?
Where goods are produced in smaller quantities. They are small specialised markets.
What are advantages of mass markets?
-huge number of potential customers
-high revenue
What are the disadvantages of Mass Markets?
-high competition
- may need to spend lot of money on advertising to stand out from competitors
What are the advantages of Niche Markets?
-low competition
- easily target customers
What are the disadvantages of Niche Markets?
-can be too small to survive
- miss out on economics Miss of scale
What is E-Commerce?
The buying and selling of goods and services over an electronic network
What is Product Orientation?
An approach to business that places emphasis on the production process and the product
What is Market Orientation?
An approach to business that places emphasis on placing the consumer at the centre of the decision-making process.
What are the advantages of Product Orientation?
-less spending on market research
- help find key innovation that allows you to corner the market.
What are the disadvantages of Product Orientation?
-can be seen as inflexible
- costs can be high
What are the advantages of Market Orientation?
-making products customers want, so less product failures
- allows flexibility