Topic 1.1

Question 1

What is a market?

Answer 1

where buyers and sellers meet to exchange goods, now-a-days it is more specific e.g.

• financial markets
• housing markets

Question 2

What is Marketing?

Answer 2

a management process involves in identifying, anticipating and satisfying consumer requirements profitably.

Question 3

What is a Mass Market?

Answer 3

a very large market in which products with mass appeal are targeted

Question 4

What are some benefits of being in a mass market?

Answer 4

• opportunities for large sales

- possibility of economies of scales

Question 5

What are some drawbacks of being in a mass market?

Answer 5

• Highly competitive

- Requires large investment in marketing –> in 2013 Coke spend $3.3bn on global marketing

Question 6

What is a Niche Market?

Answer 6

a smaller market, usually within a large market or industry

Question 7

What are some benefits of being in a Niche market?

Answer 7

• Opportunity to charge higher prices

- First in the market advantages

Question 8

What are some drawbacks of being in a Niche Market?

Answer 8

• Risky for a business in a small market

- Vulnerable to large businesses entering the market ( who can also afford to charge lower prices)

Question 9

What is Market Size?

Answer 9

is measured by either values of products sold or volume of products sold and is used to calculate market shares

Question 10

What is Market Share?

Answer 10

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.

Question 11

What is the Market Share Formula?

Answer 11

Sales of a business/Total sales in the market x 100

Question 12

What can the Market Share Formula be used in comparison with?

Answer 12

• compared to last years figures
• compared to market shares in other countries
• compared to competitors

Question 13

What may branding be used for?

Answer 13

• differentiate the product from there rivals
• create customer loyalty
• help product recognition
• develop an image
• charge a premium price when brand becomes strong

Question 14

What is a Dynamic Market?

Answer 14

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.

Question 15

What is E-commerce?

Answer 15

conducting business transactions online

Question 16

What is Online retailing or e-tailing?

Answer 16

the retailing of goods online

Question 17

what are some benefits of E-tailing?

Answer 17

• 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

Question 18

Primary research=

Answer 18

The first hand information that you collect

Question 19

Secondary research=

Answer 19

Second hand research that you obtain.

Question 20

Limitations of primary research=

Answer 20

It can be expensive, time-consuming and take a long time to complete if it involves face-to-face contact with customers.

Question 21

Advantages of primary research

Answer 21

Data collected is up-to-date, relevant and specific to your research objectives.

Question 22

Limitations to secondary research.

Answer 22

Secondary data can be general and vague and may not really help companies with decision making. The information and data may not be accurate.

Question 23

Advantages of secondary research

Answer 23

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.

Question 24

Definition of market orientation

Answer 24

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.

Question 25

Definition of