Edexcel- The Market Flashcards
Sales volume
Number of units sold
Sales value
Revenue generated from products
Market size
Sales over a period of time
Market share
Proportion of total market
Market share formula
Sales business/ total market shares x 100
Brand
Value and experience customer has with a product or service
Brand loyalty
Product or service which will get repeat business
Brand loyalty benefits
Customer loyalty
Business can charge higher prices
Retailers will want to stock brands
Mass markets pros
Large sales so high revenue
Economies of scale
Everyone can be equally targeted
Mass market cons
Lots of competition
Products need to be differentiated
Lower profit margins
Niche market pros
Charge premium prices
Easier to target consumers
Less competition
Niche market cons
Demand is not constant
No economies of scale
Difficult to target audiences as smaller
Dynamic markets
Markets which are constantly changing
Why do dynamic markets change
Customer changes and preferences
Impact of technology
Impact of new market entry’s
Innovation
Putting a new idea into action
