The Market Flashcards

1
Q

What is the market?

A

a market is any place that buyers and sellers will come together to exchange goods or services. There will normally be an exchange of money at a set price

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What is marketing?

A

The department tasked with targeting the right product for the right target market using the 4p’s.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What is a mass market?

A

The attempt to create products or services which is targeted at the whole market

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

What is a niche market?

A

The attempt to create products or services which is targeted towards a specific segment of the market

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

What are characteristics of a mass market?

A
People = lots of hierarchy, tall, decentralised,
Product = simple, easily accessible
Promotion = large scale, endorsements
Price = low price cheap
Production = large scale, global distribution, E.O.S
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

What are characteristics of a niche market?

A
People = less people, specialised, skilled
Product= tailored, valuable, intricate, specific
Promotion = small scale
Price = high premium price, specific to targeted market
Production = lower output, high quality, high costs, slow
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

What are positives and negatives of a mass market?

A

+ wider range, lower costs, E.O.S, less risk, revenues recognition, footfall
- competition, quality, costly promotion, not flexible,

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

What are positives and negatives of a niche market?

A

+ targeted, less competition, high quality, better brand image
- less E.O.S, risky, higher costs, requires skills, difficult to uphold production

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

What is the market size?

A

total value or volume of sales in the market (£)

-> units sold x price

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

What is market share?

A

the proportion of total market sales that a firm has.

-> (sales of 1 firm / total market sales) x 100

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

How could a business increase market share/gain share?

A

economy fluctuations, marketing flows, competitors actions, economic landscape.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

What is a dynamic market?

A

A market that is constantly, sellers respond to the changing needs of buyers by improving products.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Why do markets change?

A

social trends
technological changes
competition
consumer tastes

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Why do business have to adapt?

A

otherwise they will lose competitiveness

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

What is a stable market?

A

The pace of change is slow with constant market size and shares that has little innovation with little price variation.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

What is online retailing?

A

process of buying and selling goods and services over the internet also known as e-commerce

17
Q

What is a long tail?

A

The idea that the internet has increased customer choice which has increased the importance of niche products due to increased accessibility.

18
Q

what has online retailed allowed?

A
24/7
convenience
choice
product variation
price transparency
global market
pure play businesses
competition - innovation
faster growth
19
Q

What are the negatives of online retailing?

A
not for everyone
stigma
increased risk of fraud
reduced prices
IT specialists
20
Q

What is a digital economy?

A

an economy built on technologies by the internet

21
Q

What are the three areas of a digital economy?

A

supporting infrastructure
e-business
e-commerce

22
Q

What is a brand?

A

A product produced by one business using a specific name creating a unique identity.

23
Q

What can branding allow a business to do?

A

Charge a higher price due to brand loyalty

24
Q

What are positives of building a brand?

A
  • help build loyalty, added value
  • brand extension allows a business to add to a product range with new products
  • brand personality
  • increased market share and sales
25
Q

What are disadvantages of building a brand?

A
  • higher promotion costs
  • constant promotion
  • bad events may affect products
  • needs to be protected worldwide
26
Q

How does a business affect a market?

A
Prices charged
Buying power of customer
Selling power of supplier
Availability of substitutes
Rivalries to innovation
27
Q

What is the degree of competition?

A

Number of firms that exist within a market

28
Q

What is a monopoly?

A

She one firm dominates the industry

29
Q

What is a oligopoly?

A

When 3 or more businesses are competing in a market.

30
Q

How does a business adapt to changes in the market?

A

Offensive status
Defensive status
Mixture of both

31
Q

What does it mean when a business is being offensive to change?

A

Trying to increase sales or develop new markets

32
Q

What does it mean when a business is being defensive to change in a market?

A

When a business reacts to the competition and try to maintain their market.

33
Q

What is product innovation?

A

New technology creating new products

34
Q

What is the process of innovation?

A

New technology to improve everything but products ie distribution, stock, supply chains

35
Q

What is market growth calculated by?

A

(Change in size of market/original size) x 100