The Market Flashcards
What is the market?
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
What is marketing?
The department tasked with targeting the right product for the right target market using the 4p’s.
What is a mass market?
The attempt to create products or services which is targeted at the whole market
What is a niche market?
The attempt to create products or services which is targeted towards a specific segment of the market
What are characteristics of a mass market?
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
What are characteristics of a niche market?
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
What are positives and negatives of a mass market?
+ wider range, lower costs, E.O.S, less risk, revenues recognition, footfall
- competition, quality, costly promotion, not flexible,
What are positives and negatives of a niche market?
+ targeted, less competition, high quality, better brand image
- less E.O.S, risky, higher costs, requires skills, difficult to uphold production
What is the market size?
total value or volume of sales in the market (£)
-> units sold x price
What is market share?
the proportion of total market sales that a firm has.
-> (sales of 1 firm / total market sales) x 100
How could a business increase market share/gain share?
economy fluctuations, marketing flows, competitors actions, economic landscape.
What is a dynamic market?
A market that is constantly, sellers respond to the changing needs of buyers by improving products.
Why do markets change?
social trends
technological changes
competition
consumer tastes
Why do business have to adapt?
otherwise they will lose competitiveness
What is a stable market?
The pace of change is slow with constant market size and shares that has little innovation with little price variation.
What is online retailing?
process of buying and selling goods and services over the internet also known as e-commerce
What is a long tail?
The idea that the internet has increased customer choice which has increased the importance of niche products due to increased accessibility.
what has online retailed allowed?
24/7 convenience choice product variation price transparency global market pure play businesses competition - innovation faster growth
What are the negatives of online retailing?
not for everyone stigma increased risk of fraud reduced prices IT specialists
What is a digital economy?
an economy built on technologies by the internet
What are the three areas of a digital economy?
supporting infrastructure
e-business
e-commerce
What is a brand?
A product produced by one business using a specific name creating a unique identity.
What can branding allow a business to do?
Charge a higher price due to brand loyalty
What are positives of building a brand?
- 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
What are disadvantages of building a brand?
- higher promotion costs
- constant promotion
- bad events may affect products
- needs to be protected worldwide
How does a business affect a market?
Prices charged Buying power of customer Selling power of supplier Availability of substitutes Rivalries to innovation
What is the degree of competition?
Number of firms that exist within a market
What is a monopoly?
She one firm dominates the industry
What is a oligopoly?
When 3 or more businesses are competing in a market.
How does a business adapt to changes in the market?
Offensive status
Defensive status
Mixture of both
What does it mean when a business is being offensive to change?
Trying to increase sales or develop new markets
What does it mean when a business is being defensive to change in a market?
When a business reacts to the competition and try to maintain their market.
What is product innovation?
New technology creating new products
What is the process of innovation?
New technology to improve everything but products ie distribution, stock, supply chains
What is market growth calculated by?
(Change in size of market/original size) x 100
