The Market Flashcards
What is marketing
Putting the right product in the right place, at the right price, at the right time.
Niche market definition
a small, specialized market for a particular product or service.
Mass market
When a business sells the same products to all costumers and markets them in the same way.
Advantages niche market
Less competition
Products are more effective at initial stage of PLC
More chances of customer retention
Disadvantages Niche Market
Low sales
Low profit
Can’t exploit economies of scale
Advantages mass market
High sales
Low cost of production
Can exploit economies of scale
High profit
Disadvantages mass market
Low chance of customer retention
Faces more competition
Products less effective in initial stage of PLC
Market size
-Indicates potential sales
-Measured in volume (the physical quantity of products produced and sold).
Measured in value (the total amount spent by costumers buying products).
-Size of individual segment can also be measured.
Market share
is the percentage of customers who buy/use a company’s goods/services
Brands
Businesses try to establish theirselves in a market by giving their products a brand name.
Why businesses use branding?
Differentiate the product from it’s rivals one
Create costumer loyalty
Help product recognition
Develop
Charge higher prices when brand become strong
Dynamic markets
Why do they change?
Costumer change in preferences or tastes.
Technology impact on how costumers buy and how they buy.
New businesses may enter the market
Why markets grow?
-Economic growth: global living standards tend to rise. So people have more money to spend.
-Innovation: businesses can create new needs and wants and meet them with new products.
-Social changes: Changes in society can impact markets.
-Changes in legislation: New laws can affect markets.
Demographic changes: Changes in the structure of population can affect size of markets.
Online retailing (e-commerce)
The use of electronic systems to sell goods and services.
Why to use e-commerce?
-Retailers can market their goods to people who prefer to shop from home.
-It is easier to gather personal information (Market research).
-selling costs can be avoided (sales staff, rent)
-Marketing costs would be lower. It is cheaper to send an e-mail to 1000 than a letter to 100.
-Online retailer can reach more costumers.
-Online shops are open 24/7
-Online retailing provides greater flexibility.
