Meeting Customers Needs Flashcards
What is a market
A set of arrangements that allows buyers and sellers to trade in a range of goods and services
What is a mass market
A market that operates within a larger part of the market
What is a niche market
Where a business targets a small segment if a larger market-customers have specific wants/needs
What are some factors of a niche market
-small number of potential customers
-focuses on specific needs of target groups
-less competition
-able to charge higher prices
-risk isn’t spread out
What are some factors of a mass market
-huge numbers of potential customers
-business produces large quantities of products
-economies of scale=lower cost per unit
-likely to be lots of competition
-high advertising costs
What is market size
The total value or volume of sale sun the market
What is the equation for market size
Value (money)= number of units sold x price
What is market share
The percentage of a market held by any one company or product
How to calculate market share
Sales of one firm/total market sales x 100
What is branding
A brand is a product or service produced from a business using a specific name
Why do we use branding
Branding created an identity that delegates the businesses products/services from competitors
What is a dynamic market
A market that is constantly changing
What is the multichannel approach
Businesses allow purchase to be done online or through stores
Why might a market change
-changes in consumer taste or habits
-changes in technology
-social trends
-competition
-innovation
-government intervention
-demographic changes
What is product innovation
Launching new or improved products or service onto the market
What is process innovation
Finding better or more efficient ways of producing existing products or delivering existing services
Why do businesses innovate
To keep up with the market
What is direct competition
Businesses that produce similar products/services to a similar group
of consumers
What is indirect competition
Businesses that produce products/services that are not in direct competition but compete for the same customer expenditure
Why should an entrepreneur identify their competition
It could affect
-nature of ownership
-product/service offered
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