a market is a place where buyers and sellers come to exchange goods
what is a brand?
when a business creates a distinct image in the market/ in the minds of customers
what is a niche market?
a niche market is small and specialised segment of a market
what are the characteristics of a niche market?
charge higher prices
less competition
specialised products
what is a mass market?
a large market which targets many different demoghraphics with the same mass produced products
what are the characteristics of a mass market?
flow production
little to no differentiation between competition
many firms- high number of competition
dominated by large corporations
lower unit costs- higher profit margins
what is the formula for market size?
sales/market share x 100
what is the formula for market share?
Sales of business / total sales in market x 100
what is a dynamic market?
a dynamic market is a market which is constantly changing
what are the reasons for dynamic markets constantly changing?
change in technology
social trends
change in competition
fluctuation in incomes
change in preferences
define risk
factors that are not expected but can be assessed
define uncertainty
being unsure of the factors influencing sales, therefore being unable to predict what will happen
what is market research?
market research is the process of collected and interpreting information found about a market
what is marketing?
how a business interacts with its audience- advertising or promotion
what is product orientation?
Business develops products based on what it is good at doing
what is market orientation?
When a business bases its marketing mix on its perception of what the market wants
advantages of market orientation
fits customers wants and needs
quick responsiveness to change in market trends
disadvantages of market orientation
changing function regularly can cost a lot and confuse brand
advantages of product orientation
focused on product development which increases quality
disadvantages of product orientation
doesn't prioritise what customers want so it may not be appealing to customers in the market- less sales on the product, unsatisfied customers
what is primary research?
collected data and information first hand
what is secondary research?
collecting data from another source
why is research important?
it helps businesses anticipate what customers need so they can stay ahead of competition/ be the first in the market to release a product which then increases their market share
methods of primary research
- Surveys
- Interviews
- Focus groups
- Observations
methods of secondary research
- Market analysis
- internet
- Government publications
- media
advantages of primary research
up to date information
meets specific needs of the business
disadvantages of primary research
expensive
may not always be helpful
time consuming
requires large smaple sizes
benefits and drawbacks of OBSERVATION
adv- can reveal feelings baout a product under no biasness
disadv- time consuming and costly
benefits and drawbacks of ONLINE SURVEY
adv- much quicker as it can automatically go into the database
disadv- low response rate
generic opinions
benefits and drawbacks of FOCUS GROUP
adv- detailed opinions
disadv- expensive
benefits and drawbacks of GOVERNMENT PUBLICATION
adv- free from business bias
disadv- may be out of date
all businesses have access to the information
what is qualitative data?
non-numerical data, data in opinions
what is quantitative data?
numerical data
benefits of qualitative data
- indepth opinions useful to further understand customers
-Can ask further questions if needed
disadvantages of qualitative data
- time consuming and expensive
- Can make a false impression and can be biased
- Cannot be extended to a wider population
benefits of quantitative data
- Data relatively easy to analyse
- Numerical data provides insights into relevant trends
- Can be compared with data from other sources
disadvantages of quantitative data
doesn't explain why things happen
may lack reliability because of sample size inaccuracy
what is market segmentation?
dividing a market into different parts to target them easier