Markets (2)

• What is a market?

  Where buyers and sellers come together to exchange a good or service.
• What's a local market?

   this is where the buyers may be a short distance from the sellers 
• What is a national market?

   a market where customers are spread throughout the country or over a large area
• What is a global market?

  International trade and exchange of goods and services worldwide.
• What is a consumer market?

   a market for products and services bought by individuals for personal or family use.
• What is a trade market?

  a market that involves the sale of goods and services between businesses. Often referred to as ‘Business to Business’ marketing
• What is a seasonal market?

   a market where businesses will experience seasonal variations in output and/or sales
• What is mass marketing?

  Mass marketing is a business strategy that involves promoting a product to a large audience, with little to no customization for different segments.
• what is niche marketing?

  Niche marketing is a business strategy that focuses on targeting a specific segment of the market with specialized products, tailored to the needs of that group.
• What are the positives of mass marketing?

  brand recognition, economies of scale, higher revenue potential
• What are the negatives of mass marketing?

  High competition, less personalisation, expensive marketing, no customer loyalty
• What are the positives of niche marketing?

  Less competition, targeted marketing, customer loyalty, stronger brand identity
• What are the negatives of niche marketing?

  limited market size, risk of market saturation, high marketing costs
• What is market size?

   this is information about the total amount of goods sold in a particular market.
• What is market share?

  this is the proportion of total sales in a market made by one business
• How do you calculate market share? 


  Market share (%)=Number of products sold by the business/ Total market sales ​×100
• What are market trends?

  these are changes and developments in the buying and selling of products and services in a market.
• What is market segmentation?

  Market segmentation is the process of splitting a large market into different sub-groups of customers on the basis of them having similar characteristics
• Splitting the market up by demographics means targeting customers based on:

  • Gender 
  • Age 
  • Socio-economic groups/social class 
• Splitting the market up by geographical location means targeting customers based on:

  • Regions of the country 
• Splitting the market up by psychographics means targeting customers based on personality and emotionally based behaviour
• Splitting the market up by lifestyle means targeting customers according to the way they lead their lives and the attitudes they share.
• Splitting the market up by culture means targeting customers based on ethnic origin, religion and/or personal belief. 
• What is a perfect competition market?

  Perfect competition exists in a market whereby many small firms produce virtually identical products at similar prices. 
• What are the features of a perfect competition market?

  price takers, high competition, no barrier to exit or entry, full market information
• What is a monopolistic competition market?

  Monopolistic competition is a market structure where elements of monopoly allow businesses or consumers to exercise some control over market prices.
• What are the features of a monopolistic competition market?

  highly competitive, few barriers to entry, small control on price
• What is an oligopoly?

  An oligopoly exists when there are many businesses operating in a marketplace but only a few large businesses dominate the market.
• What are the features of a oligopoly?

  strong brand identity, stable pricing relatively high barriers to entry,
• What is collusion? 


  A form of anti competitive behaviour Where a group of businesses act to collude on price
• What is a price war?

  A period of fierce competition where businesses cut prices to increase market share.
• what is a cartel?

  when a group of businesses illegally join forces to increase joint profits.
• What is a pure monopoly?

  A monopoly exists when there is a single producer within a market (one business has 100% of the market). This is known as a pure monopoly. 
• What is a monopoly?

  A monopoly can now be defined as any business with over 25% market share.
• What are the features of a monopoly?

  very high barriers to entry, price markers, supernormal profits