1.1.1 The market Flashcards
What is the mass market?
Where a business sells into the largest part of the market, where there are many similar products offered by competitors
What is the niche markets?
Where a business targets a smaller segment of a larger market, where customers have specific needs and wants
Advantages of niche marketing? (2)
Less competition
Can often charge a higher price
Disadvantages of niche marketing? (2)
Lack of economies of scale
Risk of over dependence on a single product or market
Advantages of mass marketing? (2)
Create products with universal appeal
Exploit economies of scale to earn high profits
Disadvantages of mass marketing? (2)
Over-saturation of market
Less consumer engagement
How can the size of a market be measured?
The size of a market can be measured through sales volume or sales value
What is sales volume?
Sales volume is the number of products sold
Sales revenue formula
Sales revenue = Price x units sold
what is market share?
The market share is the proportion of the total sales of a product/service compared to the market as a whole
What is the formula of market share?
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what is a dynamic market?
A dynamic market is a market that is subject to rapid changes
What happens if a business fails to adapt to market changes?
Less likely to survive in the long run
What is a monopoly?
A large business which dominates a market
What is the difference between product and process innovation?
Product innovation is launching an improved product to the market while process innovation is finding a more efficient way to produce that product.
