(PAPER 1) 1.1.1 the market

Question 1

mass market definition

Answer 1

large market of cusomers which is undifferentiated and that sells products and services to suit a large number of potential customers

Question 2

niche market definition

Answer 2

a smaller part of a large market, with products tailored to specific customer needs

Question 3

-mass market: 
customers
products
competition
price
market size 
market share

Answer 3

customers:high
products:high
competition:high
price:low
market size:high
market share:low

Question 4

-niche market 
customers
products
competition
price
market size 
market share

Answer 4

customers:low
products:differentiates
competition:low
price:high
market size:small
market share:high

Question 5

market size definition and formula

Answer 5

the total value of sales in a market over a certain time period (1 year)
1 businesses sales/ market share of business x100

Question 6

market share definition and formula

Answer 6

the proportion of the total market that the business holds

market share= (sales of a business/total sales in market) x100

Question 7

dynamic markets definition

Answer 7

markets that don’t stand still. They grow, shrink, fragment, emerge or completely disappear

Question 8

online retailing definition

Answer 8

selling products via the internet e.g. through apps or websites

Question 9

E-commerce definition

Answer 9

conducting business transaction online

Question 10

advantages of online retailing

Answer 10

• convenient: you can buy from home at any time of day as there are no closing times
• limitless product range
• you can compare prices easily
• very cost effective

Question 11

disadvantages of online retailing

Answer 11

• too much choice can be over whelming
• have to send things back which is lots of effort so it is inconvenient
• can’t physically try on or test the quality of clothing
• cyber security: scamming

Question 12

direct competition definition

Answer 12

when two or more businesses sell similar products that appeal to the same group of customers

Question 13

indirect competition definition

Answer 13

when two or more businesses sell products that are different, but they are competing for the same customers

Question 14

risk definition

Answer 14

the potential for gaining something of value that is known and you have some control over

Question 15

uncertainty definition

Answer 15

a potentially unpredictable and uncontrollable outcome

Question 16

innovation definition

Answer 16

WHEN A BUSINESS IMPLEMENTS NEW IDEAS OR PROCESSES

Question 17

acronym to summarise how markets change

Answer 17

Political
Economic
Social
Technological
Legal 
Environmental

Question 18

the triangle

Answer 18

pxq

Question 19

market growth

Answer 19

new market size-old market size/ old market size

Question 20

Advantages and disadvantages of operating in a dynamic market

Answer 20

• Uncertainty- due to constant change in market- mean that business has to plan ahead to minimise risk- predictions for the future could be wrong
  + forces innovation- motivation for business to become market leader

Question 20

benefits and dtrawbacks of operating in a dy