Session 2/3/4 - the market Flashcards
Define a market
Places where buyers and sellers come together to exchange goods/services
What is the definition of marketing
The management process responsible for identifying, anticipating and satisfying customer requirements profitably
Define niche market
Smaller specific segment of the market
Define mass market
Majority of the market involving high volume production
What are the pros of a niche market
Less competition, target particular customers, build market expertise, charge higher prices, higher profit margins, loyal customers, competitive advantage
What are the cons of a niche market
Lacks economies of scale, risk of over dependance, attract competition, vulnerable to market changes
What are the pros of a mass market
Economies of scale, straightforward - equal targeting, high revenue therefore R and D
What are the cons of a mass market
Lots of competition, need for differentiation, expensive, not flexible to demand changes
What are the two ways in which market size can be measured
Volume of sales (quantity sold).
Value of sales (price x quantity)
What is the formula for market size
Revenue / market share
What is the definition for market share
Percentage of a markets total sales by a particular company
What is the formula for market share
(Sales of X / total sales in the market) x 100
What is the formula for market growth (% change)
(New - old) / old x 100
What factors can market growth be driven by
Change in income levels, trends, new tech, health concerns, effective marketing
Define a dynamic market
One in a rapidly changing business environment
