market types, structure and segmentation

• What is the main factor that differentiates various market structures?

  The levels of competition that exist within each market and the market conditions in which businesses operate
• How does competition change as the number of businesses in a market increases?

  Competition increases as the number of businesses in the market increases
• What are the characteristics of perfect competition?

  • Large number of businesses competing
  • No single business can influence market activities
  • No market or price leaders; businesses are price takers
  • Homogenous goods with no branding or differentiation
  • Equal access to technology and productivity
  • Consumers have full market information
  • No barriers to entry or exit
• Why is perfect competition considered a model rather than a reality?


  Because there is always some form of branding or differentiation in real markets
• What defines a monopoly in a market?


  • A single producer with 100% market share
  • Barriers to entry for other businesses
  • Price makers with significant influence on price
• What is the UK and EU competition authorities' threshold for potential monopoly power?

  Any business with over 25% of the market
• What advantages can monopolies offer to consumers?

  Massive economies of scale, reducing prices, and investment in product improvement
• What are the characteristics of an oligopoly?

  • Many businesses with a few dominating the market
  • Differentiated products with strong brand identity
  • Brand loyalty through heavy advertising
  • Stable prices with occasional price wars
  • Some barriers to entry, like high start-up costs
• What happens when businesses in an oligopolistic market collude?

  A cartel is formed, trying to keep prices high and share the market
• What are the advantages of oligopolistic market structures for consumers?

  Economies of scale, high profits for innovation, and variety in products
• What defines monopolistic competition?

  • Many relatively small businesses in competition
  • Few barriers to entry
  • Similar but differentiated products
  • Weak brand identity
  • Limited control over prices
• How do businesses in monopolistic competition differentiate their products?

  Through physical product differentiation, methods of purchase, and distribution
• What are the two main types of marketing strategies discussed?

  • Mass marketing: targets the whole market
  • Niche marketing: targets specific segments of the market
• What is niche marketing?

  A strategy that targets a smaller segment of a larger market with specific needs
• What are the advantages of niche marketing for businesses?

  Ability to charge higher prices and develop expert knowledge of the market
• What challenges do niche markets face?

  Niche markets can disappear due to changes in economic conditions or competition
• What is mass marketing?

  • Targets the whole market
  • Involves marketing goods/services to all consumers
  • Takes advantage of economies of scale
  • High setup costs and fierce competition
• What is a market segment?

  A sub-group of a larger market with common features
• What rules must apply to market segmentation?

  • Segments must be recognisable
  • Segments must have critical mass
  • Segments must be targetable
• How can demographic segmentation be defined?

  Segmentation based on age, social class, gender, and income
• What is psychographic segmentation?

  Segmentation based on personality, attitudes, opinions, and lifestyles
• What does geographic segmentation involve?

  Segmentation based on regions of the country and global marketing needs
• How can businesses cater to different phases of the customer life cycle?

  • Offer products for students, young professionals, families, etc.
  • Adapt products to meet changing customer needs
  • Maintain sustainable customer relationships
• What is global marketing?

  • Selling goods/services to overseas markets
  • Implementing different marketing strategies based on region
  • Adjusting packaging, pricing, and promotional strategies
• What are the advantages of entering global markets?

  Higher earnings, risk spreading, saturation of home market, economies of scale, and survival
• What is trade marketing?

  • Focuses on selling to distributors, retailers, and wholesalers
  • Aims to increase demand within the supply chain
  • Supports traditional consumer-focused marketing strategies
• What is the impact of seasonal markets on businesses?


  Seasonal variations can significantly influence sales and require careful planning
• What are some examples of seasonal markets?

  • Ice cream sales in summer
  • Fireworks sales around holidays
  • Diet plans in January
• Why is it important for businesses to plan for seasonal changes in their marketing mix?

  To ensure all aspects of the marketing mix are in place during critical sales periods
• What are some discussion themes related to market structures?

  • Features of each market structure
  • Price stickiness in oligopoly
  • Definition and advantages of cartels
  • Reasons why perfect competition is unlikely
  • Influence of market structure on marketing strategies
  • Importance of identifying market segments
  • Success in trade markets and consumer markets