1.1.1 the market

Question 1

market

Answer 1

any place where buyers and sellers come together to exchnage goods or services

Question 2

mass market characteristics: (3)

Answer 2

• targeted at a wide range of people
• not segemented
• appeal to wide customer base

Question 3

benefits of a mass market: (4)

Answer 3

• wide customer base
• lower risk
• low unit cost
• low costs

Question 4

niche market characteristics: (3)

Answer 4

• distinct characteristics
• charge higher prices
• identify small gaps in the market

Question 5

niche market advantages: (4)

Answer 5

• meet unique customer needs
• build brand loyalty with target customer
• less competition
• able to charge higher prices

Question 6

market size definition

Answer 6

number of potential sales for a business

Question 7

market size formula

Answer 7

units sold x price

Question 8

market share definition

Answer 8

explains how overall market is split
good indicator of competitive advantage

Question 9

market share formula

Answer 9

(sales of individual firm)/(sales of whole market) x100

Question 10

market growth definition

Answer 10

indicator for exisiting and potential market entrants

Question 11

market growth formula

Answer 11

(change in size of market)/(original market size) x100

Question 12

brand

Answer 12

product prodcyed by one business using a specific name that differenciates the product from its competitors

Question 13

features of a brand: (6)

Answer 13

• celeb endorsement
• symbols
• shape
• logo
• colour
• images

Question 14

what does a brand do… (4)

Answer 14

• creates an identity
• trademark
• consumers have a perception
• add value

Question 15

benefits of a brand: (3)

Answer 15

• brand extension
• brand value
• brand personality

Question 16

brand extension

Answer 16

adding new product ranges to a recognised brand name
consumers familiar/lotal more likely to try new products

Question 17

brand value

Answer 17

brand name itself adds value
has a monetary value

Question 18

brand personality

Answer 18

almost take on a persona of their own
associate them with human characteristics

Question 19

online retailing

Answer 19

process of buying and selling goods over the internet

Question 20

positives of online retailing:

Answer 20

• shop 24/7
• low overhead costs
• access to a wider market (worldwide)

Question 21

dynamic markets

Answer 21

markets that are always changing
can grow/change/decline very quickly

Question 22

innovation

Answer 22

when a new idea is launched
- view of financial gains

Question 23

how do markets change: (6)

Answer 23

• tech
• demographic
• economy
• legal
• social
• environment

Question 24

what are risks: (4)

Answer 24

• measurable
• internal factors
• can be controlled
• possible to add probability to quantify degree of risk

Question 25

what are uncertainties: (4)

Answer 25

- not measurable - external factors - cannot control - not possible to add probability