Topic 1.1 Flashcards
What is a market?
where buyers and sellers meet to exchange goods, now-a-days it is more specific e.g.
- financial markets
- housing markets
What is Marketing?
a management process involves in identifying, anticipating and satisfying consumer requirements profitably.
What is a Mass Market?
a very large market in which products with mass appeal are targeted
What are some benefits of being in a mass market?
- opportunities for large sales
- possibility of economies of scales
What are some drawbacks of being in a mass market?
- Highly competitive
- Requires large investment in marketing –> in 2013 Coke spend $3.3bn on global marketing
What is a Niche Market?
a smaller market, usually within a large market or industry
What are some benefits of being in a Niche market?
- Opportunity to charge higher prices
- First in the market advantages
What are some drawbacks of being in a Niche Market?
- Risky for a business in a small market
- Vulnerable to large businesses entering the market ( who can also afford to charge lower prices)
What is Market Size?
is measured by either values of products sold or volume of products sold and is used to calculate market shares
What is Market Share?
the proportion of total sales in a particular market for which one or more business or brands are responsible. Expressed as a percentage and can be calculated by value or volume.
What is the Market Share Formula?
Sales of a business/Total sales in the market x 100
What can the Market Share Formula be used in comparison with?
- compared to last years figures
- compared to market shares in other countries
- compared to competitors
What may branding be used for?
- differentiate the product from there rivals
- create customer loyalty
- help product recognition
- develop an image
- charge a premium price when brand becomes strong
What is a Dynamic Market?
Markets that change rapidly to suit customers needs and wants. For example, fashion brands regularly change as customers want to keep up with the changes.
What is E-commerce?
conducting business transactions online
What is Online retailing or e-tailing?
the retailing of goods online
what are some benefits of E-tailing?
- More access from people –> 24/7, and travel distance, some people dont like shopping or cant physically get to shops
- Lower costs –> not as many staff wages (no staff wages)
- Easier to get person information and then use it to target products and offers
- It can be updated easily, ie ‘deal of the day’ imaging
Primary research=
The first hand information that you collect
Secondary research=
Second hand research that you obtain.
Limitations of primary research=
It can be expensive, time-consuming and take a long time to complete if it involves face-to-face contact with customers.
Advantages of primary research
Data collected is up-to-date, relevant and specific to your research objectives.
Limitations to secondary research.
Secondary data can be general and vague and may not really help companies with decision making. The information and data may not be accurate.
Advantages of secondary research
This is a less expensive and less time-consuming process as data required is easily available and doesn’t cost much if extracted from authentic sources.
Definition of market orientation
The consumer is the most important factor when providing products for the market, the business has sensitivity to a customers requirement. For example a customisation on a pair of trainers.
Definition of
