meeting customer needs Flashcards
market definition
all buyers and sellers that trade a particular type of product
mass market
aimed at large group of buyers
product has a wide appeal
niche market
aimed at specific group of buyers
product is specialised
characteristics of a mass market
sell to large range of consumers
sales volume is high
more likely to benefit from EOS
can charge lower prices to consumers
dis of niche markets
more risky as sell to smaller amount of customers
change in market can affect them widely meaning can quickly lose sales and struggle to survive
adv of niche markets
less competition
due to selling specialised products, can charge higher prices to consumers
market size
total value of sales in a market
market share
proportion of total market that the business holds
market size and market share in mass and niche markets
mass markets have larger market size
many more mass markets then niche
niche market has higher market share
branding
making clear logo
customers can easily recognise
mass markets more important as other businesses selling similar products so need a distinctive brand
reasons dynamics markets change
CIC
consumer preferences-fashion or advances in technology
innovation-new products emerging
ways in which consumers want to shop e.g growth of online shopping
online retailing
selling products via the internet
adv of online retailing
costs are lower as don’t need physical shop or hire as many staff
lower costs mean can sell lower prices
customers can order anytime, wherever, convenient for consumers
customers can easily compare prices between different firms and find lower prices
did of online retailing
face more comp as consumers can easily shop around and find cheaper prices
some consumers like to see product before they buy it and speak to staff
direct competition
when two or more businesses sell similar products that appeal to same group of customers
