section 1 Flashcards
what is a niche market?
a market in which products are aimed at specific groups of people
what is a mass market?
a market in which products are aimed at large groups
what is market size?
market size is the total value of sales in a market over a certain period of time
what is market share?
how is it calculated?
the proportion of the total market that a business holds
it is calculated by dividing sales in a time period by total sales in the market
why do mass markets needs to focus more on branding than niche markets?
In mass markets consumers sell similar products and therefore there is more competition,. However in niche markets the products meet particular needs of specific people so there is little competition
what is a dynamic market?
a market which changed and eclipses rapidly
what are ways in which a market can change?
-consumer preferences can change eg: fashion trends
-competitors can leave or enter the market
-changes in legalisation (for example tax on certain products)
-innovation of new products leading to growth in some markets and decline in others
what is online retailing and what impact does it have on businesses?
online retailing is selling products via the internet eg. selling through apps or websites.
it can have a negative impact on retailers who have a physical shop because many people shop online instead.
what are the benefits of online retailing?
- a businesses costs are lower because it doesn’t need a shop or staff to run it.
-customers can order whenever from anywhere which is convenient and can increase the sales a business receives
-customers can easily compare prices between firms to find the lowest prices
what are the drawbacks of online retailing?
-business may face more competition
-some customers like to see products before they buy in store
-businesses need to maintain security for protection against peoples details online which can be expensive
what are the 4 p’s?
-product: good quality,distinctive and uniquely appealing
-promotion: products need to be noticed , promotional campaigns, advertising
-pricing: competitive pricing etc
-place: easy for customers to access
how does competition affect markets?
New and smaller markets often struggle in competitive markets because they find it hard to stand out against big firms such as kellogg’s.
what is branding and how does it link to adding value?
Branding is the process of creating a logo or a name to make your products stand out against competitors.
An example of adding value is branding because it means that customers are buying from an established brand. Therefore the business can increase prices as they have a usp over other businesses
what is branding and how does it link to adding value?
Branding is the process of creating a logo or a name to make your products stand out against competitors.
An example of adding value is branding because it means that customers are buying from an established brand. Therefore the business can increase prices as they have a usp over other businesses
Direct and indirect competition
direct: where a business is targeting at customers with the same product as competitors
indirect: where businesses compete with different products but at the same customers for their disposable income
difference between risk and uncertainty
risk: the potential threats a business may face
uncertainty: when it’s difficult for a business to predict an outcome
