Theme 1.1 Meeting customers needs Flashcards
How is market size calculated?
The total sales of all businesses in the market
What are the 2 ways market size is measured?
Value (number of units x price)
Volume - The physical quantity of products/units which are sold
Market growth?
The increase in size, value or volume over time which is a positive sign for an economy as it suggests the economic landscape is improving
Market share?
The percentage of the markets sales that a company owns
Formula for market share?
Sales of business/total market sales X 100
Niche Market?
When a business targets a smaller segment of a larger market, where customers have specific needs and wants
Mass Market?
When a business targets the largest part of the market, where there are many similar products offered by competitors
3 things that marketing involves?
Identifying the wants and needs of customers
Persuading customers to buy products
Charging the right price
3 key features of a mass market?
Customers needs and wants are more general and less specific
High production output which results in economies of scale
Huge number of customers in these markets
3 aims of Mass Marketing
Exploit economies of scale to earn higher profits
Create products with universal appeal
Leadership of the largest market
3 benefits of a niche market?
Customer Loyslty
Less competition
Premium Price due to USP
3 drawbacks of niche market?
Less demand
Don’t benefit from EOS
Vulnerable to changes in the market
