Theme 1 . 1 Flashcards
What are the 2 types of Market and what are their characteristics?
Niche and Mass. Niche is more specialised such as a surfboard shop whereas the mass market is sold to millions of consumers with more generalised products such as bread and milk.
What is the Market Size?
This is the overall size of the market calculated by using volume and value. Value is the number of products sold and volume is the number of productsi the market.
What is Market Share and how to calculate.
This is the overall share a compnay has in the maket. Such as Nike having a 20& share of the show industry. Calculated by Business sales / total market sales
Branding
Establish a brand to build loyalty, worth and pricing. Higher the rep the more they can charge.
Dynamic Markets
These markets are always changing and updating. They may pop up and clost at anytime never dormant.
Online retailing and the benefits list 3
eCommerce sold over the web. No need for shop fronts, cheap marketing, 24/7,reach more customers.
How do markets change
Markets change by their nature such as the new technology added. And by new markets being added. New products are constantly inflow so new markets will spring to life
What are the 4 reasons for market growth and innovation
Seasons, new tech, legislation, changes in the ages of consumers.
What are they ways that business adapt to the changes. Name 3.
By having capital to allow for flexibility, research, investment in the new tech, develop a niche and kaizen.
What are the ways that competition affects the market.
Constant updates to be on top, lowing prices , innovation, diversity, variation all of which is beneficial to the consumers.
The difference between risk and uncertainty.
Risk is what the owner takes in order to gain a reward, the uncertainty is the external influences that may occur over the course of the trading period.
