THEME 1 REVISION Flashcards
mass market definition
targeting a large population of the market with a generic product.
niche market definition
targeting a small population of the market with a specialised product.
mass market pro’s
large scale production, large volume of sales, and more brand names
mass market cons
lots of competition, and not flexible to respond to changes in demand.
niche market pro’s
can charge higher prices, focus on the needs of customers, and promotion costs are lower.
niche market cons
higher unit costs, and demand may not be as consistent.
market share
the proportion of the total market held by one company or product, often measured by value.
dynamic market
a market that us subject to rapid or continuous change due to customer preferences, innovation and competitors etc.
dynamic market advantages.
meeting customer needs so more opportunity for higher sales, and can exploit new revenue streams and networks.
dynamic market disadvantages
more vulnerable to market fluctuations, more investment needed, easy to loose market share, and continuous marketing costs.
online retailing advantages
wider market, lower costs, and owners can be anywhere in the world.
online retailing disadvantages
more competition, security issues such as fraud, and not all customers like to shop online.
primary research
collecting data that doesn’t already exist. it is collected for a specific purpose and is gathered from questionnaires, interviews, surveys, focus groups and consumer panels.
secondary research
collates information that is already in existence. this can be collected internally or externally. it could be existing business documents, official publications, yellow pages, and magazines etc.
quantitative research
collection of data that can be measured. this involves statistical data such as sales figures and market share.
qualitative research
collection of data about attitudes, beliefs, and intentions. common methods to obtain are focus groups, participant observation and interviews.
market orientation
the business reacts to what customers want. the decisions taken are based around the customers needs and wants, rather than what the business assumes is correct. most successful businesses take a market-orientated approach.
product orientation
the business develops products based on what is good at doing rather than the customers wants. this approach is usually criticised because it often leads to unsuccessful products.
market segmentation
dividing a market into identifiable segments in which consumers share one or more characteristics e.g. demographics, geographic’s, income, and behavioural. it helps to target products and advertising at the correct target customer. it is also less wasteful of resources rather than trying to sell to everyone.
limitations of market research
often biased, a small sample limits the reliability of the research, and it’s time consuming to collect.
market positioning
a cross scale of high to low quality and high to low price.
price elasticity of demand
the relationship between a change in the price of a product and the change in demand for the product.
income elasticity of demand
the relationship between a change in income and the change in demand for the product.
PED
a rise is demand = shift to the right.
a fall in demand = shift to the left
