The Market Flashcards
what is a mass market?
a very large market
3 pros of a mass market
- more potential customers
- higher economies of scale
- high sales
3 cons of a mass market
- higher competition
- high entry barriers
- low adaptability
what is a niche market?
a smaller market usually within a larger one
3 pros of niche market
- less competition
- brand loyalty
- high profit
3 cons of niche market
- vulnerable to market changes
- risk of over dependence
- lack of economies of scale
2 examples of a mass market
- Amazon
- Coca Cola
2 examples of niche markets
- LUSH
- Rolex
What is market size?
the number of potential customers that you could sell your product or service to
What is market share?
the percentage of total sales or total output that a business has in a specified market
what is brands?
creating a unique name and image for a product in the consumer’s mind, mainly through advertising campaigns with a consistent theme
what are dynamic markets?
a market that is constantly changing
what is competition in a market?
the rivalry between companies selling similar products and services with the goal of achieving revenue, profit, and market share growth
what is the difference between risk and uncertainty
In risk you can predict the possibility of a future outcome, while in uncertainty you cannot. Risks can be managed while uncertainty is uncontrollable
