Theme 1 Flashcards
What does marketing involve?
- Identifying needs and wants of the consumer.
- Meeting these needs.
- Understanding competitors’ threats.
- Customer awareness.
- Charging the correct price.
What are examples of mass markets?
- Cereals.
- Crisps.
- Fizzy drinks (e.g. Fanta, Sprite, Coca Cola).
Define mass market.
A market aimed at the general population.
What are examples of a niche market?
Businesses that sell equipment or clothing for water sports or extreme sports.
Define a niche market.
A small market segment which has not been explored by bigger businesses.
What are the advantages of being in a niche market?
- Less competition.
- A head start on potential competitors in the future.
- Easier to focus on the needs of the customer.
What are the advantages of being in a mass market?
- Huge amount of customers.
- Businesses can exploit economies of scale by producing large quantities at a lower unit cost.
What are the disadvantages of being in a mass market?
- Competition is high.
- Huge budget needed for marketing.
What are some examples of markets?
- Consumer goods market.
- Markets for services (e.g. hairdressers).
- Housing market.
- Commodity markets.
What is sold in the consumer goods market?
- Food.
- Cosmetics.
- Magazines.
What is sold in the commodity markets?
Raw materials such as oil, copper, wheat and coffee.
How can the size of a market be estimated or calculated?
The total sales of all businesses in the market.
What are the two ways that market size can be estimated?
- Value. The total amount spent by customers buying products.
- Volume. The physical quantity of products that are produced and sold. This could also be the number or percentage of users, subscribers or viewers.
What is market share or market penetration?
Market share is a term used to describe the proportion of a particular market that is held by a business, a product, a brand or a number of businesses or products.
How do you calculate market share?
Sales of a business
————————————— X100
total sales in the market
