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
