1.1

Created by

Dawid

Cards (47)

Markets definition  
A place where buyers and sellers meet to exchange goods and services.
Examples of markets are:
financial markets, labour markets, goods markets, and services markets.
Marketing definition:   
The process of identifying, anticipating and satisfying customer needs profitably. Also includes helping a business sell its products
What is a mass market   
where a business sells the same product to all consumers and markets them in the same way
Advantage of a mass market
higher sales + higher profit
large scale of products produced for a lower unit cost
Disadvantage of mass market
Lot of competition
Spend more money on marketing
Definition of a niche market
Involves selling in a segment which has gone untouched as well as to a small customer group
Advantage of a niche market
Avoid competition
Focus on the needs of the customer
Charge premium prices
Disadvantages of a niche market
can exploit a market causing competition
a large business can overrun a smaller business
How to estimate/ calculate
Volume - The physical quantity of products which are produced and sold
Value - Total amount spent by the customers buying the products
Market share definition  
The proportion of a particular market that is held by a business, a product, a brand or a number of business or product
Equation for market share  
(Sales of a business / Total sales in the market) x 100%
Why is the measure of market share important 
Could indicate a business which is a market leader
might cause other to follow the the leader/influence
What is a brand name 
Products are given a brand name to be unique and distinguish themselves form other brands/products
What can branding be used for
Differentiate the product
Customer loyalty
Recognition
Develop and image
Charging a premium price
What is a dynamic market 
a market that changes over time
what are the impacts of a dynamic market
failure to adapt can lead to a collapse in the market possibly leading to a business collapsing
what is online retailing 
where shoppers order goods and services over the internet to be delivered to their home
benefits on online retailing
retailers can market goods to people who choose to shop online
easier to gather personal info
marketing costs would be lower
reach a larger customer base
open 24/7
how do markets change
the size of the market
the nature of the market
new markets
size of a market 
markets can remain the same the same and be stable over a long period of time, or they can increase and decrease in size
nature of the market
the structure and nature of the market keep changing
new markets 
some markets may disappear due to lack of competition. new markets may appear as new products are released
why might there be growth in markets
economic growth
innovation
social changes
changes in legislation
demographic changes
what is economic growth
the global living standards rise over time
world population has more money to spend
innovation 
where a business creates new wants and needs for customers and meet them with the use of new products in a market
social changes 
where the needs of society change and impact markets
changes in legislation related to innovation and market growth
New laws can affect the market such as tighter laws relating to payday had resulted firms leaving the market
demographic changes affect innovation and market growth
Changes in the structure of the population can affect the size of the market
Problems with adapting to change 
If a business does not adapt to market change this can cause the business to lose market share
What might help a business to adapt to market changes
flexibility
market research
investment
developing a niche product
continuous improvement
competitive environment
flexibility help adapt to change 
businesses need to be prepared for change so they may need to develop a culture of flexibility within an organisation
Market research help with adapting to change 
Must keep in touch in development in the market and one way is to do regular market research. business need to be aware of a change in customer needs and wants.
investment help adapt to change 
Those which invest into a new product emerging in the market or which is in development are more likely to survive in the market longer
continuous improvement help with adapting to change 
Business need to make continuous improvement in all aspects of their operations so they can improve efficiency, cost will be lower and prices can be held or reduced
developing a niche product help adapt to change 
if a market is in decline and a business unable to diversify, it ,may survive by creating a niche product. This would be for loyal customer which can be served profitably
competition affect the market
Businesses
consumers
competition  
Is the rivalry that exists which exists between business in a market
How does a business affect the competition in the market
Puts a business under pressure and may have to encourage customers to buy their product s in preference of their rivals. They may use a range of methods to attract customers such as:
lowering prices
Making products unique
Better quality products
How do consumers affect competition in the market
Consumers like completion since there will be more choices and this makes peoples lives more interesting. Customers may also enjoy better quality products and lower prices.