Business test

• In mass Markets , products are aimed at a broad market segment .
• Market segment is a group of consumers who have similar characteristics
• Mass marketing occurs when the business sells their products to most of the available market
• Mass market : production usually happens on a large scale
• Mass market : products are less unique due to being aimed at a broad market segment .
• Mass market : low average cost due to a large scale of production .
• Mass market : lower prices leads to high affordabilityland higher sales volume
• Mass market : lower prices leads to lower profit margins
• Niche markets : products are aimed at a proportion of a larger market
• Niche market occurs when business identify And satisfy demand of a small group of consumers
• Niche market : production is usually small scale
• Niche markets : products are more specialised and unique due to a narrow market segment
• niche markets : high average costs due to lower scale production
• Niche markets : higher prices leads to lower affordability and lower sales volume
• Niche market : higher prices leads to high profit margins
• Dynamic market is a market that is subject to continuous or rapid change
• Market growth is a measurement of the change in the entire market expressed as a percentage of the original market
• 4 areas to consider when examining a dynamic market is : online retailing , innovation and market growth , how market changes and adapting to change
• Market growth factors : increase in population , increase in income and change in taste and preferences .
• How market change factors : changing demographics, amount of competition , changing legislation and changing tastes .
• Adapting to change factors : creating a flexible business structure e.g people management , meet customer needs , invest in staff training and new products . Innovation for a competitive advantages .
• Market segmentation is the process at which an entire market is divided into sub groups
• Advantages of market segmentation : we can tweak the product to meet the customer needs more specifically . We can target promotion more specifically .
• Disadvantages of market research : might increase expenses due to market research . Not everyone within a segment behave the same way