The Market | Theme 1 Flashcards
What are the benefits of mass marketing?
Mass marketing provides a wide customer base, lower risk, economies of scale, and relatively low market research costs.
What is product innovation?
Product innovation involves launching new or improved products or services into the market.
How does competition affect businesses?
Competition forces businesses to lower prices, improve quality, and enhance advertising efforts to attract customers.
What defines mass marketing?
Mass marketing involves selling to the largest part of the market with many similar products offered by competitors.
What is risk in a business context?
Risk refers to the possibility that things may go wrong, which can be managed through contingency planning.
What is the relationship between market size and market growth?
Market size indicates potential sales, while market growth reflects the rate at which a market expands over time.
What factors influence changes in dynamic markets?
Changes in dynamic markets are influenced by customer tastes, technological advancements, and the entry of new competitors.
What are key features of a niche market?
Niche markets have less competition, a clear focus on specific customers, higher profit margins, and customer loyalty, but are vulnerable to market changes.
What does market share indicate?
Market share explains how the overall market is divided among existing competitors and indicates competitive advantage.
What is process innovation?
Process innovation focuses on finding more efficient ways of producing existing products or delivering services.
What is the significance of a strong brand?
A strong brand provides a competitive advantage by differentiating the product and fostering customer loyalty.
What is niche marketing?
Niche marketing targets a smaller segment of a larger market with specific customer needs and wants.
How is market size measured?
Market size is measured in terms of units/volume and value, indicating potential sales for a firm.
What is the formula for calculating market share?
Market share is calculated as the sales of the business divided by total sales in the market.
What role does branding play in mass markets?
Branding differentiates products from competitors, creates customer loyalty, and can allow businesses to charge premium prices.
What impact does competition have on consumers?
Consumers benefit from more choices, better customer service, and lower prices due to competition.
What is uncertainty in business?
Uncertainty involves unpredictable and uncontrollable events affecting business outcomes, such as new product launches.
What are the benefits of online retailing for businesses?
Benefits include reduced overhead, access to customer data, lower marketing costs, and 24/7 customer reach.
How does risk assessment relate to investment decisions?
Risk assessment evaluates potential pitfalls associated with investments, guiding businesses in making informed decisions.
What are the advantages of niche markets?
Niche markets allow businesses to build specialist skills, often charge higher prices, and cultivate customer loyalty despite higher risks.
What is the purpose of market research in mass marketing?
Market research in mass marketing aims to identify customer needs and preferences to optimize product offerings.
