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