Theme 1.1.1

Question 1

What is a Market?

Answer 1

A market is any place that buyers and sellers will come together to exchange goods or services.

Normally with an exchange of money at set price.

Question 2

What is a MASS MARKET?

Answer 2

A market for goods that is targeted at a wide range of people and appeals to a wide range of customers.

The market is not segmented

Mass media is used to advertise

Question 3

What is a NICHE MARKET?

Answer 3

A niche market is a small segmented part of a larger market.

The target market is well defined with distinct characteristics.

Can often charge higher prices.

Question 4

What is MARKET SIZE?

Answer 4

Market size is the total value or volume of sales in the market.

Can be measured in money terms (e.g. 200 million pounds)

or amount sold (1 million cars)

Question 5

What is the MARKET SIZE FORMULA?

Answer 5

number X price

of units

Question 6

What is MARKET SHARE?

Answer 6

Market Share is the proportion of total market sales that a firm has.

Question 7

What is the MARKET SHARE FORMULA?

Answer 7

Sales of one firm
__________________ X 100

Total Market Sales

Question 8

What is a BRAND?

Answer 8

A brand is a product created by 1 business using a name, sign, symbol, design or slogan in order to differentiate from competition.

a brand is a trademark that cannot be copied.

Question 9

what are the forms of BRAND?

Answer 9

images logo
colour shape
symbols celebrity
endorsement

Question 10

why is branding good?

Answer 10

branding can add value to a product- higher prices

leads to customer loyalty so customers continue to buy products from that firm.

Question 11

What are the benefits to a business of building a brand?

Answer 11

help build loyalty

adds value as businesses can charge higher prices

brand extension- can add new products to recognised brand name
- more likely to try new products if from a good brand

Question 12

what is a DYNAMIC MARKET?

Answer 12

A dynamic market is a market that is fast paced and is constantly changing based on customer wants/needs.

• have to adapt their marketing to these changes
• have to keep up or will loses competitiveness

Question 13

what affects dynamic markets?

Answer 13

customer wants/needs changes in tech
customer tastes
social trends

Question 14

what is ONLINE RETAILING?

Answer 14

Online retailing is the process of buying and selling goods and services over the internet.
(e- commerce/e-tail/m-commerce)

Question 15

ADVANTAGES of Online Retailing?

Answer 15

offers greater convenience to the consumer

• can shop 4/7
• breaks down geographical barriers

opportunities to businesses

• lower overhead costs
• access to a wider market

Question 16

What is Market Growth?

Answer 16

Market growth is the % increase in the size of the market.

Question 17

MARKET GROWTH FORMULA

Answer 17

change in
size of market
___________ X 100
original size

Question 18

What is innovation?

Answer 18

innovation is when a new idea or invention is launched onto the market normally with a view to financial gains

Question 19

how does COMPETITION AFFECT THE MARKET?

Answer 19

• the price a business can charge
• the buying power of customer
• selling power of supplier
• availability of substitutes e.g. Coca Cola and Pepsi
• willingness and ability of new firms to enter the market

Question 20

what is RISK?

Answer 20

The probability or chance that hoped for outcomes will not occur.

can be measured
(quantifiable as a probability)

Question 21

what is UNCERTAINTY?

Answer 21

cannot be measured