1.1.1 Dynamic Markets

• What is mass marketing?

  Aim products at the largest market
• What is niche marketing?

  Target a smaller segment of a market
• What is one advantage of a mass market?

  Lots of customers to sell to
• What is one disadvantage of a niche market?

  Dependent on a small group
• How do you calculate market share?

  Sales of business x 100 / Sales of total market
• What is the market size?

  Number of potential buyers or sellers
• Why do companies need to know the market size?

  Before launching a new product or service
• How can market size be measured by volume?

  Quantity of products sold
• How can market size be measured by value?

  Total amount spent by customers
• What was the worth of the UK AB&B market in 2017?

  £170m
• What does having the largest market share signify?

  Most popular product at that time
• How do you calculate market growth between two years?

  (N-O)/O x 100
• What does a dynamic market refer to?

  Markets that are constantly changing
• What are some factors that can cause a market to be dynamic?

  Social trends, technology, consumer tastes
• How do businesses adapt to change in dynamic markets?

  Through market research and consumer insight
• How did Netflix adapt to changing market conditions?

  Shifted from DVD rentals to streaming
• What is one way businesses adopt new technology?

  By leveraging advancements like AI
• How did Tesla innovate in the electric vehicle market?

  By advancing battery technology
• What is product innovation?

  Creating new or improved products
• What is process innovation?

  Improving business operations and delivery
• What is customer-driven innovation?

  Focusing on customer needs for innovation
• What is an example of product innovation?


  Google developing new camera technology
• What is an example of process innovation?

  Amazon using robotics in warehouses
• What is an example of customer-driven innovation?

  Nike offers customized products
• What are the characteristics of dynamic markets?

  • Constantly changing
  • Growth, change, and decline can happen quickly
  • Influenced by social trends, technology, and consumer tastes
• What are the advantages of online retailing?

  • Access to more consumers, including internationally
  • Longer trading hours (open 24/7)
  • Lower fixed and variable costs
• What are the disadvantages of online retailing?

  • High costs for website development and maintenance
  • Dominated by larger, well-known businesses
  • Lack of personal contact with customers
• What percentage of purchases are made online?

  51%
• What is a "clicks" retailer?

  Retailers whose goods are only online
• What is a "bricks and clicks" retailer?

  Retailers that started physical and went online
• What is the lesson objective regarding dynamic markets?

  • To analyze the characteristics of dynamic markets
• What makes a market dynamic?

  Constant changes in consumer preferences