Topic 1

Question 1

Mass Markets -> key features

Answer 1

. Large audience
. High marketing budgets
. Competition

Question 2

Mass markets -> advantages and disadvantages

Answer 2

Advantages:
. High sales volumes and revenues
. Easier to establish brand recognition
. Cost-efficient production -> economies of scale
Disadvantages:
. Intense competition may reduce profit margins
. Standardisation = may fail customer satisfaction
. Difficult for smaller firms to compete with established brands

Question 3

Nice markets -> key features

Answer 3

. Highly targeted products
. Premium pricing
. Loyal customer base
. Less competition

Question 4

Niche markets -> advantages and disadvantages

Answer 4

Advantages:
. Higher profit margins > premium pricing
. Reduced competition
. Better customer loyalty
Disadvantages:
. Limited growth opportunities
. High dependency on product or market
. Vulnerable to entry of larger firms

Question 5

Online retailing -> key features

Answer 5

. 24/7 availability
. Lower overhead costs compared to physical stores
. Detailed data collection of customer preferences

Question 6

Online retailing -> advantages and disadvantages

Answer 6

Advantages:
. Cost savings
. Accessibility
. Customisation
. Flexibility
Disadvantages:
. Intense competition
. Maintenance costs
. Requires trust and security measures

Question 7

How markets change

Answer 7

. Innovation
. Adapting to change
. Market growth
. The nature of markets

Question 8

Impact of competition on businesses and consumers (advantages and disadvantages)

Answer 8

Businesses:
. Pricing -> may reduce prices to attract customers
. Product differentiation -> standing out by unique features or quality
. Promotion -> increased spending on advertisements
Consumers:
Advantages:
. Lower prices
. Wider variety of products
. Improved product quality
Disadvantages:
. Too many options = overwhelmed consumers
. Price wars = reduced quality