the market

• the market refers to all buyers and sellers that trade a particular type of product or service in a specific place
• Market research is essential in helping businesses to identify products/services they can develop in response to the needs and wants that their customers have
• mass markets are aimed at a large group of buyers as the products sold in them have a wide appeal to customers
• niche markets are small groups of people who share similar characteristics, such as age, gender, income levels etc.
• mass markets-

  • Products are less unique as they are aimed at broad market segments
  • Low prices lead to greater affordability and higher sales volumes
  • Primark is an example
• niche markets- High average costs due to small scale production

  • High prices make products less affordable and lead to lower sales volumes
  • High prices can allow businesses to earn higher profit margin
  • louis vutoon is a example
• niche markets can be risky as they sell to a small amount of customers meaning that fi there needs and preferences change than they will lose sales
• mass markets focuses on strong branding as they have loads of competitors in the market
• market size is the total value of sales in a certain time period measured by the total consumers int he market
• market share of a business is the proportion of the total market that the business holds
• market share= sales of a business/ total sales in market x100
• branding creates a clear and obvious logo, name or statement that customers can instantly recognise this helps differentiate a business product from its competitors
• branding is important as it helps to encourage customers to buy products therefore leading to affecting markewt share
• • A dynamic market is a market that is subject to rapid or continuous changes mainly due to customer preferences changing
• markets can change due to customers preferences changing, innovation, competitors, the ways people want to shop and also changes in legislation
• online retailing is selling products via the internet
• benefits of online retailing is

  • Enables longer trading hours as the business is open 24/7
  • Consumers can receive offers that they are more likely to benefit from
  • Businesses can collect data by tracking consumer behaviour which helps with primary market research
  • Cheaper to run as it lowers fixed and variable costs compared to bricks and mortar retailers
• drawbacks of onlien retailing is

  • There may be high costs for website development, maintenance, and promotion
  • Consumers may find it difficult to get the desired level of customer service
  • Online purchasing opens consumers up to credit card fraud
• Product innovation involves the adaptation or improvement of existing products
• Process innovation involves the adaptation or improvement of existing processes
• Market growth is the measurement of the change in the entire market
• • Direct competition occurs when the business is targeting customers with the same product as a competitor
• Indirect competition occurs when firms sell different products but compete with each other for the customers disposable income e.g. cinema
• Competition results in many benefits for the customer, such as

  • Businesses offer lower prices
  • Businesses produce better quality products
  • Businesses provide better customer service
• Risk is the potential threat to business success
• Uncertainty is when outcomes are difficult to predict
• risks-

  • Technical failures due to the break down of essential equipment
  • currency fluctuations
• uncertainties-

  • What will happen to interest rates?
  • Will the economy go into recession?