T1 The Market Flashcards
What is mass marketing?
When business’ sell to larger parts of the market where there are many similar products
What are benefits and drawbacks of mass marketing?
Benefits: wide consumer base, lower risk, market cost relatively low.
Drawbacks: lots of competitors, so mist have a strong brand and good marketing
- no USP
What is niche marketing?
Targets smaller segments of a larger market where customers have specific needs. More likely to target wealthier people and charge higher prices.
What are benefits and drawbacks of niche marketing?
Benefits: charge for luxury objects are higher in price meaning loyal customers + high profit margins
Drawbacks: threats of competition, may be unreliable if markets change
What is market size?
Market size indicates the potential sales for a firm, usually measured in terms of both volume and value.
Market share formula.
(Sales of a business/ total sales in a market)*100
What is dynamic marketing?
Markets are always changing through customer tastes, technology, what customers buy and the impact of new competitors.
These are all destructive technologies as they affect the pace and nature of the market
(E.g. film industries = online streaming sites)
What are benefits and drawbacks of online retailing?
Benefits: saves money on staff and rent
- Open 24/7 which maximises sales and isn’t limited.
Drawbacks: the websites are expensive to make
- could be security problems
Product and process innovations.
Product - launching new/ improved products or services on the market
Process - finding a better/ more efficient way of producing existing products/ services
