The Market Flashcards
what is a niche market
where a business targets a smaller segment of a larger market where customers have specific wants and needs
what is a mass market
where a business sells into the largest segment of the market, where there are many similar products on offer
what are the advantages of operating in a niche market
can charge higher prices for products/ sevices
less competition
better brand image
profit margins are higher
customers are loyal
what are the disadvantages of operating as a niche market
less demand
aimed at a specific audience
smaller maket
higher costs
specialist skills may be required
staff may demand higher sallaries
what are the benefits of operating in a mass market
higher demand
economies of scale
lower cost through bulk buying
mmore customer
less taining is required
regular revenue
less cash flow problems
what are the drawbacks of operating as a mass market
more substitute products availabe
increased competition
prices have to stay competative
low customer loyalty
staff may lack motivation
may be hard to identify a chnage in cutomer wants and needs
why might a market change with examples
advancements in technology e.g AI
new trends e.g prime
changes in customer wants e.g new iphone every year
seasonal changes e.g ice cream
PESTLE
what does PESTLE stand for
political
economical
social
technological
legal
environmental
dynamic market
a dynamic market is a forver changing market
reasons for change include
advancements in technology
new trends
changing customer wants
sasonal chnages
PESLTLE
to respond to changes a business can
difrentiate
enter a new market
use ne suppliers
increase marketing strategies
how does competition affect the market
competition drastically effects the market due to customer loyalty, availability of substitute products
to be more competative a business can lowe prices or improve quality
risk vs uncertainty
risk is the know probabilites and potential outcomes, allowing for quantification managemtent and planning
uncertaincy is the unknown probabilities, unpredictable outcomes and challanges traditional risk managemnt approaches
