1.1

• a market is a set of arrangements that allows buyers and sellers to communicate and trade in a particular range of goods and services
• Mass market: When a business sells mass produced goods to all customers and markets them in the same way, such as Coca-Cola.
• Niche Market: A smaller market segment, selling to a smaller customer group, more suited to their specific needs, such as surfing and skateboarding.
• Market growth: The percentage growth in the size of a market.
• Market size is the total sales of all the businesses in the market, which can be measured in value or volume.
• Market share is the proportion of a particular market that is held by business, product, brand or a number of businesses or products, often shown in a pie chart.
• Market growth is the percentage growth in the size of the market, measured over a specific period.
• Businesses use branding to differentiate their products from competitors, create customer loyalty, and make products recognisable.
• Branding helps businesses develop an image for themselves and charge premium prices.
• Markets change due to factors such as innovation, new products, new audiences, legislation, popularity, and more sales achieved from a larger market.
• The nature of markets can involve more online markets, changing consumer needs, cost of living/economy, and increased competition.
• New world-wide circumstances, changing behaviours and expectations, and new products can lead to changes in markets.
• Online retailing is good for retailers as it can be open 24/7, does not require a physical store, has lower costs as there is no need to pay rent, can expand the market, and has a larger audience.
• Businesses compete by innovating products to be consumers' first choice, changing prices to keep consumers, and matching their competition to avoid losing customers and profit.
• E-commerce is the act of buying and selling online, with sales made whenever, delivery costs, and is available for everyone.
• Consumers are always looking for the best price and value for money, more variety of products and prices, and more choice of what to buy.
• Online retailing, also known as e-tailing, is the selling of goods on the internet.
• Demographic changes such as an increase in population can create changes in the market as consumer needs change.
• Economic growth can lead to markets growing, more employees, and easier expansion.
• Innovation can involve new products being made, changing technology, and new ideas could open up new markets.
• Online retailing is beneficial for customers as it gives them access to products from a wide range of businesses internationally, is less time consuming, allows them to shop from home, delivered to the door, is more convenient, and is good for situations like covid.
• Social changes such as corona, rising population, cost of living, and trend changes can affect markets.
• Changes in legislation can involve health and safety rules, tariffs, tax, new laws, plastic charges, increased business costs, safety of products, and selling standards.
• Some markets may become obsolete due to legislation changes.
• Businesses that produce different products for different market segments can increase revenue.
• Customers may be more loyal to those whose products are tailored specific to them.
• Some businesses can avoid wasting promotional resources by not targeting products at customers who do not want them.
• Some businesses can market a wider range of guards to different customer groups.
• Different customer groups have different needs due to where they live, for example, African people have different needs to English people.
• There may also be differences between different groups living in different parts of the same country.
• Age – infants and adults have different needs due to age, for example, in clothing.
• Gender – men and women are targeted by different products and businesses, for example, in toiletries.
• Income – incomes vary by country, and businesses target certain income groups.
• Social class – businesses pay attention to socio-economic groups, based on occupations.
• Ethnicity – many countries becoming more cosmopolitan, and ethnic groups tend to live in the same country, meaning they have different needs.
• Religion – religious groups have different tastes, for example, Muslims don’t eat pork.
• Psychographic segmentation involves grouping customers according to their attitudes, opinions and lifestyles, for example, sports products aimed at 'extreme' sports players.
• People's attitudes may be used to segment the market, for example, some pension funds are geared towards those who want to invest in 'ethical' businesses.
• A drawback of psychographic segmentation is that it's difficult to collect data on beliefs, lifestyles or attitudes of customers, and businesses need the help of specialist businesses.
• Behavioural segmentation segments markets due to how consumers relate to a product, and there are different methods of behavioural segmentation: usage rate, loyalty, time and date of consumption.