the market Flashcards
what is a market ?
a place where buyers and sellers meet, to arrange a price
what is a mass market?
sells products to a larger segment of market
what are the advantages of mas markets?
high sales volume
benefits from economies of scale
high level of production
less susceptible to change
what are the disadvantages of mass market?
requires more promotion
lots of competition
generic products
low profit margin
what is a niche market?
sells to a small segment of the market. sells ore specific products to the wants of customer
advantages of a niche market?
more loyal customers
not a lot of competition
high profit margins
disadvantages of niche market?
market demands more specific knowledge
more susceptible to change
small level of production
what is market share?
percentage of the market that a business owns
what is a dynamic market?
a market which is constantly changing
what is a stable market?
A market which changes very slow
why a market might change?
government rules and regulations change in customer values process innovation - change in production methods mean costs can be reduced product innovation change in customer values change in customer demands and needs
what is the difference between risk and uncertainty?
risk can be quantified whereas uncertainty can not
