Business Theme 1

avatar
Created by
Mariya Choudhury

Subdecks (20)

Cards (248)

  • Market
    All buyers and sellers that trade a particular type of product in a particular space
  • Name two different types of markets
    Mass & Niche
  • What is a mass market?
    Refers to a large group of consumers who have similar needs and preferences for a particular product or service
  • What is a niche market?
    A small, specialised segment of a larger market that caters to a specific customer need or interest
  • What are the key features of a mass market?
    -Product aimed at a larger group
    -Product has a wide appeal & useful to a variety of people
    -Sell to more customers
    -Sales volume is higher
    -More likely to benefit from economies of scale so products can be sold cheaper
  • What are the key features of a niche market?
    -Product aimed at a specific group
    -Product is specialised to meet specific requirements of buyers
    -Can be risky —> sell to smaller range of customers
  • Market share
    The proportion of the total market that the business holds (usually %)
  • What do businesses in a mass market focus on?
    Making their brand distinctive as there are lots of businesses selling similar products so competition increases
  • What do businesses in niche markets focus on?
    The products particular requirements
  • Dynamic Market
    A market that changes and evolves rapidly
  • What is the market share calculation?
    sales of a business / market size X 100
  • How can dynamic markets change?
    -Consumer preferences
    -Innovation (new products emerge)
    -Ways that customers shop may change (online)
    -Competitors (may enter or leave market)
    -Changes in legislation
  • Online retailing
    Selling products via the internet
  • What are the benefits of online retailing?
    -Costs are lower —> no need for physical shop
    -Customers can order anywhere at any time —> increases sales opportunity
    -Customers can easily compare prices of products
  • What are the drawbacks of online retailing?
    -More competition
    -Customers may want to see product before buying it
    -Businesses must ensure customers personal details are protected from cyber criminals —> maintaining security is expensive
  • What are the two types of competition in a market?
    Indirect & direct competition
  • What is direct competition?
    When businesses sell products that are similar and appeal to the same group of customers (eg, Asda & Tesco)
  • What is indirect competition?
    When businesses sell products that are different but they are competing for the same customers (eg, Italian vs Indian takeaway)
  • Competition has a lot of influence on decisions firms make about its marketing mix. What are the factors of the marketing mix?
    -Product
    -Price
    -Place
    -Promotion
  • Risks
    The chance of something going wrong —> probability of negative outcome usually calculated to implicate ways of minimising outcome (risks are controllable)
  • Uncertainties
    Unexpected events usually external things outside a businesses control and mostly effect whole market instead of individual markets
  • Product orientation
    Focusing on the design, quality or performance of products rather than what the customer wants
  • Market orientation
    Focusing on selling products that match customer preferences
  • What are the features of a product orientated market?
    -may use advanced tech to develop new products that they think customers will like
    -often create new & innovative products to persuade customers
  • What are the features of a market orientated market?
    -a modern successful approach providing what customers want so they can charge higher prices
  • Market research
    The collection & analysis of market information
  • Why is market research necessary?
    -to find out customers needs and wants
    -to predict how much demand there will be and how much supply is necessary
    -to predict/work out how much consumers are willing to buy a product
    -to learn consumers behaviour regarding a product
    -identifying competitors
    -to gain an insight into environmental factors that could affect the market (Social,Legal,Economic,Political,Technological)
  • Qualitative research 

    Based on opinions of consumers —> often involves open questions
    *Usually more informative and responses are flexible
  • Quantitative research
    Produces numerical statistics, facts & figures —> often involves closed questions
    *Data can be statistically analysed making analysis quicker and easier
  • Primary research
    Business gathers new data
  • Secondary research
    Using data that’s already available
  • Give some examples of primary research
    -Questionnaires/Surveys
    -Observations
    -Interviews
    -Focus Groups
  • Give some examples of secondary research
    -Government publications
    -Internet
    -Magazines
    -Market reports (Mintel)
  • What are the advantages of primary research?
    -Specific to business
    -Exclusive to business who researched it so competitors can’t benefit
  • What are the disadvantages of primary research?
    -Time-consuming
    -Expensive
  • What are the advantages of secondary research?
    -Wide range of data
    -Faster
    -Cheaper
  • What are the disadvantages of secondary research?
    -May be inaccurate (errors & unreliable)
    -Could be out of date
  • What are the benefits of using technology to support market research?
    -easier
    -cheaper
    -quicker
    -can gather lots of info
  • What are the different types of websites businesses can use to support market research?
    -own website
    -competitor websites
    -read reviews of their products on other businesses websites
  • Social networking
    The use of internet-based platforms to make connections with people