meeting customer needs Flashcards
market
any place where buyers and sellers get together to exchange goods and services.
mass market
an unsegmented whole of a market
niche market
a small, specialized market for a particular product OR a small unsegmented gap in the market
market size
total value or volume of sales in the market. number of units sold x price
market share
this is the proportion of total market sales that a firm has. sales of one firm/total market sales x 100
branding
the creation of an identity that distinguishes a business and their products from other competition
why is branding useful?
chain of reasoning
- branding can add value to a product
- allowing firms to charge higher prices
- and can also lead to brand loyalty
- leading to higher repeat sales
benefits of branding
- Brand extension
* Consumers familiar with or loyal to the brand and more likely to be willing to try new products - Brand value
* The brand name itself adds value to the product. - Brand personality
* Brands have persona of their own, we associate them with certain human characteristics
dynamic market
a rapidly changing business environment
competitive market
a large number of businesses compete with one another to attract customers to buy their goods and services
online retailing
the process of buying and selling goods and servics over the internet
market growth
change in size of market / original size x 100
the percentage increase in the size of the market
innovation
when a new idea or invention is launched into the market normally with a view of financial gain
the difference between risk and uncertainty
business decision making involves both risk and uncertainties
both deal with unknowns but risk is measurable and possible to add a probability to quantify the degree of risk.
uncertainties are too unpredictable to have a quantifiable probability and is unmeasurable.
how can a business adapt to change
- flexibility (prepare for change)
- market research
- continuous improvement
- develop a niche
