Paper 1 Flashcards
What is a brand
A brand is used to differentiate, distinguish and create an image which can allow products in mass markets to charge a higher price
What is a niche market
A niche market is a subset of the main market that focuses on specific customer wants and needs
What is a mass market
A Mass market is where a business sells to the largest part of the market where there are many similar products of offer
Characteristics of a mass market
One advert for product High economies of scale Mass production Large customer base High competition High turnover of raw materials to products
Characteristics of a Niche market
Charge a premium price Specialised products Low economies of scale High wastage Not as many competitors Targeted advertising
Market size
Value of the items sold and the volume of the products sold in the market
Formula for market share
Sales of x business / sales of whole market x100
Characteristics of online retail for consumers
Open 24/7
Global fashion- more availability
Alliente markets- harder to access elderly if they don’t trust online banking
Delivery costs
Characteristics for online retail for a business
Save costs- lower overheads
Need technology skills
Gather customer data and info- direct marketing
Website crashing can be a huge financial loss
How can markets change
Size- markets can grow or shrink
Nature- products or services provided-consumer perception trends
New- technology developments
How can businesses adapt to change
Develop a niche
Continuous improvement and innovation
Investment- growth and expansion
Market research- what do consumers actually want
How can competition affect consumers
Consumers can be exploited it there is low competition
How can competiton affect a business
Saves costs
Need technology skills
Gather customer info- direct marketing
Website crashed- huge financial loss
How markets can change
Size- markets can grow or shrink
Nature- product or service provided- consumer perception+trends
New- developments in technology
How businesses can adapt to change
Develop a niche
Continuous improvement and innovation
Investment growth and expansion
Market research what do customers want
lack of competition effects on consumers
Lack of competition means that they can charge a higher price meaning that they can be exploited
Competition characteristics for a business
Under pressure to get customers can adapt as such
Lower prices, better quality, advertise, promote added value
Reduced potential profits
Make barriers into market
Risk definition
An action taken by a business with an unknown outcome
Uncertainty
External influences out of the control of the business
Product orientation definition
Where a business develops products based on what it is good at making or doing, rather than what the customer wants
Market orientation definition
Where a business focuses on what the consumer wants and needs and meets them
Benefits of market orientation
Respond quick to change
anticipate change
respond quickly to change
Primary research
research gathered and undertaken by a business directly
Secondary research
involves a business using the research that someone else has gathered
Qualitative data
data gathered that consists of attitudes, beliefs and opinions
Quantitative data
data gathered that consists of statistics and measured data
Market positioning
helps determine what customers believe is being offered to them
Market mapping
using a graph to help plot competitors and their products to understand competitor behaviour and spot a gap in the market
benefits of market segmentation
Meet specific needs
Increased revenue
Avoid wasting resources
gain loyalty
FACTORS LEADING TO A CHANGE IN SUPPLY
- Changes in the cost of production
- Indirect taxes
- Government subsidies
- Introduction of new technology
- Weather
- Government
- World events
- Price of related goods
Demand
is the amount of a product that consumers are willing and able to purchase at a given price
Supply
; is the amount of a product which suppliers will offer to the market at a given price
What is a surplus
Where supply exceeds demand
What is a shortage
When demand exceeds supply
