business theme 1

• mass market is a large market where there are very similar products on offer
• niche market is a small segment of a market where customers have specific needs and wants
• market size is the total revenue generated by the sales of all products and services in a given market
• market share is business revenue divided by total markets revenue x 100
• dynamic market is a market that is constantly changing
• product orientation is when a business develops its products based on what it’s good at doing
• market orientation is when a business responds to consumer needs and designs products accordingly
• primary research is collecting data that has not been collected before (focus group, questionnaire, survey, observation)

  + specific to your business

  -can be expensive
• secondary research- data that has already been collected by others (internet, magazines, statistics)

  + quick and easy to collect

  -not relevant/ may be outdated
• market segmentation- seperating the market into smaller groups that share similar characteristics which will help you target your market

  Age

  Location

  Demographics

  Income

  Lifestyle
• market mapping is the process of visually organising information about various competitors in a specific market in order to understand market trends and positions of other businesses
• competitive advantage is a condition where a business is in a favourable position in relation to its competitors