the market-mr smith

Question 1

mass market

Answer 1

aimed at large group of buyers
wide appeal
sell to more consumers
sales volume higher then niche markets
products cheaper to produce then niche markets
need a lot of capital so businesses may find hard to become a mass market
larger market size

Question 2

niche market

Answer 2

segment
aimed at specific group of buyers
specialised to meet particular requirements
more risky
sell smaller number and narrorower range of consumers
change in sales could cause them struggle to survive
larger market share then mass market

Question 3

examples of mass markets

Answer 3

choclate cabury
aero
twix

Question 4

examples of niche markets

Answer 4

moo free chocolate vegan

Question 5

what is market size

Answer 5

total amount of sales in a market over a certain period of time

Question 6

what is market share

Answer 6

proportion of the total market that business holds

Question 7

branding

Answer 7

helps differentiate a product
mass markets tend to focus more on branding as have competition

Question 8

dynamic markets

Answer 8

change and evolve rapidly
reasons for this:
consumer preferneces-consumer trends fashion or advances in technology
innovation-new technology new products emerge
ways people want to shop online shopping may change
competitors coming in and leaving market
change in legislation-adding tax so stop putting as much sugar in the drinks

Question 9

online retailing

Answer 9

selling products via the internet through apps or websites
negative impant on shops on high street/face to face only

Question 10

adv of online retailing

Answer 10

bsuiness costs lower dont havew to hire as many staff and donet need to pay for phsyical shop
customers can order any time they want and often anywhere in the world

Question 11

dis of online retailing

Answer 11

costs for delivery
people prefer seeing what there buying face to face

Question 12

competition

Answer 12

indirect
direct

Question 13

direct competion

Answer 13

when two or more businesses sell similar products that appeal to the same group of customers
e.g supermakers tesco, siansbuys etc

Question 14

indirect competition

Answer 14

when two or more businesses sell differnt products but competing for the same customers
e.g takeway restruants indian and chinese etc

Question 15

4 ps

Answer 15

product-is it good quality
unique appeal
distinctive

promotion-noticed and encourage consumers
promotional campaigns
advertising
may use celebrity endorsement to get customers attention

price-often use competitive pricing
prices based on compettion prices
penetration pricing-low to high

place-easy for customers to access
locate where loads of protantial customers live

Question 16

what can mass market sbe dominated by

Answer 16

national or global markets such as cearal kellogs,nestle,weetabix etc

Question 17

changign nature of ownership

Answer 17

rather then operating sole trader or partnership may have to operate as limited company to help raise funds
new frim may find it easier to start as a franchise. an agreement that allows a business to use the idea,name and repuation of an established business

Question 18

adv of being a franchise

Answer 18

people already familiar with the brandname
bsuiness will support to help make it successful

Question 19

risk

Answer 19

always chance of something going wrong
risks are controllable

Question 20

uncertainties

Answer 20

unexpected events
usually external things that businesses cannot control
e.g unexpected bad weather

Question 21

product orintated business

Answer 21

business focuses ore on design, quality or perfomace of its products rather then what consumers actually want
developing new products in hope customers iwll like/innovation

Question 22

market orientated business

Answer 22

focuses on selling products that match customer preferences
invests lots into market reserach
to find out what customers want and are willing to buy

Question 23

market research

Answer 23

collection and analysis of market information
looking at market as a whole,competitors, products and consumers

Question 24

what are needs

Answer 24

essentials/ things people need to survive

Question 25

what are wants

Answer 25

things people desire to have but dont need /choose to buy

Question 26

quantitive data

Answer 26

tit in
numerical statistics
is the answer a b or c
multiple choice questionaires
closed questions

Question 27

qaualative data

Answer 27

data from oponions and facts
open questions
no restrictions to answers

Question 28

adv of quantitiive data

Answer 28

can be statistically analysed
meaning quick and easy to analyse

Question 29

adv of qualative data

Answer 29

more flixble answers
more informative answers

Question 30

primary market research

Answer 30

where business gathers new data

Question 31

secondary market research

Answer 31

using data already available

Question 32

primary resaerch extended

Answer 32

can be collected by questionaries or surveys
questions can be done by phone
interviews
focus groups
test marketing
sampling
specif to purpose its needed for. good examples niche markets

Question 33

ways to gather primary resaerch

Answer 33

can be collected by questionaries or surveys
questions can be done by phone
interviews
focus groups
test marketing
sampling
specif to purpose its needed for. good examples niche markets

Question 34

dis of rpimary market research

Answer 34

labour-intensive slow and expensive

Question 35

ways to gather secondary research

Answer 35

givernment implications
relaible internet sources
magazines
reports

Question 36

adv of secondary research

Answer 36

quicker and easeir to get hold of
also cheaper

Question 37

dis of secondary research

Answer 37

may have to use primary research after to get more modern feedback

Question 38

must acvoid bias questions

Answer 38

questions leading to a aprticualr answer
interviewer bias-interviewer influences repsonsdents resposne
respondant bias-respodnat asnwers not truthally as may feel its not socially acceptable such as saying eats 3 chcolate bars a week insteasd of 23

Question 39

market map

Answer 39

shows extremes for two measures imporatant to customers such as low price vs high price

Question 40

how is a markt map laid out

Answer 40

as a matrix

Question 41

what can market maps help to do

Answer 41

help find gaps in the market
can be spotted and filled by new businesses
can show business who its closes competitors are
can show how much customers willing to pay

Question 42

what can market maps help to do

Answer 42

help find gaps in the market
can be spotted and filled by new businesses
can show business who its closes competitors are
can show how much customers willing to pay

Question 43

dis of market mapping

Answer 43

may simplify things too much
positions may be biased and due to opinion

Question 44

competitive advantage

Answer 44

condtion which allows firm to be more profitbale and more sales than rivals

Question 45

ways to get competive advantage

Answer 45

lower costs-generate more sales
product innovation-introducing new product update or make new product altogther before rivals
advertising-make it more attravctibe to buyers
good customer service-polite, efficent and knowledagble staff
convience-quick and easy buting experinec for customer

Question 46

adding value

Answer 46

means increasing the differnce between cost product made at adn rhe proce customer pays. increases profits

Question 47

calculation for added value

Answer 47

price product is sold for-cost of making product