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Markets Flashcards

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1
Q

what is the definition of a market?

A

a place buyers and sellers come together to exchange goods and services

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2
Q

what does it mean by competition?

A

when rivalry exists between businesses in the same industry.
this is because most businesses are trying to sell similar products to the same target audience

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3
Q

what does competitive markets mean?

A

where there are a large number of buyers and sellers but they can’t affect the price of the goods and services

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4
Q

what are the types of markets?

A

-Local
-Global
-Mass
-Niche
-Trade
-Consumer
-Seasonal
-Product
-Service

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5
Q

what is a local market?

A

-is a business selling to a small geographical area
-E.G local butchers
-local markets include customer who live close to its goods and services

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6
Q

what is a global market?

A

-serving markets across the world
-E.G a multinational business such a Nestle
-Different marketing strategies are used depending on the location of the country the company is marketing too

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7
Q

what is a Mass market?

A

-refers to a market for goods produced at a large scale for end on consumers
-E.G McDonalds
-mass media is used to advertise the products

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8
Q

what is a Niche market?

A

-its where a business targets a small segment of a large market, where customers have specific needs and wants
-E.G cosmetic products
-lower starting up costs and can gain expert knowledge

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9
Q

what is trade market?

A

-selling to other business also known as business markets or B2B
-E.G price discounts
-branding is unimportant

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10
Q

what is a consumer market?

A

-selling goods and services directly to provide for customers
-E.G Costco
-selling a product to the general public

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11
Q

what is a seasonal market?

A

-sales peak at certain times of the year
-E.G B&B booking
-each have critical sky periods

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12
Q

what is a product market?

A

-where goods and services are sold to households
-E.G cars
-focus on finished goods

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13
Q

what is a service market?

A

-form of marketing that provides their customers with service also increasing brand awareness
-E.G financial consulting
-business to consumer or business to business

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14
Q

what does market analysis mean?

A

the process of gathering information about anything that has or will affect the conditions in the market

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15
Q

what does market data mean?

A

information collected by business from different sources to help the business understand market size, market share and market trends

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16
Q

what is market size?

A

the total value or quantity of demand in a specific market

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17
Q

what is market share?

A

the proportion of sales a business has achieved expressed as a percentage

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18
Q

what is market trends?

A

changes and development in the buying and selling products and services in a market

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19
Q

what is the calculation for market share?

A

sales of a business
————————— X 100%
total market size

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20
Q

what is the definition of market segmentation?

A

-identifying and targeting groups of people with similar needs and developing products or services for each of them.
-a market segment is any subgroup of a larger market

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21
Q

what are the 3 types of market segmentation?

A

-demographic
-psychographic
-geographic

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22
Q

what is demographic market segmentation?

A

-age
-social class
-gender
-income

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23
Q

what is psychographic market segmentation?

Study These Flashcards
A

allows targeting of groups on personality and emotionally based behaviours

24
Q

what is geographic market segmentation?

Study These Flashcards
A

regions of the country-rural,urban,suburban

25
what are the advantages of market segmentation to CUSTOMERS?
-helps their belief -helps fit their wants and needs -easier to find
26
what are the drawbacks of market segmentation to the CUSTOMER?
-more expensive products -less variety -more excluded
27
what are the benefits of market segmentation to the BUSINESS?
-more sales as in target -experts in segment -brand loyalty
28
what are the drawbacks of market segmentation to the BUSINESS?
-harder to target -higher costs -time consuming
29
what are market structures?
market structures is best defined as the organisational and other characteristics of a market
30
what is perfect competition?
-large number of firms -homogenous (nature of product) -easy to enter and leave market -price takers -N/A price or non price competition -equal access to technology E.G agriculture
31
what is monopolistic competition?
-large number of small scale sellers -differentiated (nature of product) -easy to leave market -ability to fix their own price -non price/price competition -few barriers to entry E.G hairs cuts
32
what is oligopoly?
-few firms (3-6) -differentiated (nature of product) -barriers to entry -very high pricing -tend to avoid price competition -strong brand identity -E.G banking
33
what is monopoly?
-one firm -one option of products -erect barriers -price makers -N/A price or non-price competition -a single product in market E.G royal mail
34
why do consumers need protection?
-credit agreements -data protection -reduced costs
35
what is the definition of demand?
the quantity of a good or service that consumers are willing and able to buy at a given price in a given time period
36
what is the relationship between price and quantity demanded?
high price= low quantity low price= high quantity
37
what are the factors that cause the demand curve to shift?
Population Advertising Substitutes Incomes Fashion/trends Interest rates Complements
38
what is the definition of supply?
the quantity of a product that produces is willing and able to supply onto the market at a given time period
39
what is the relationship between price and quantity supplied?
as price increases, the quantity supplied would increase
40
what are the factors that cause the supply curve to shift?
Productivity Indirect taxes Number of firms Technology Subsidies Weather Costs of production
41
what is the definition of price elasticity of demand? (PED)
PED measures the responsiveness of demand to a change in price
42
what is the importance of PED?
-business managers need to know the impacts of changes in price on likely levels of demand -they need to know how sensitive the demand for their goods or services is to a change in price
43
what are the 2 types of PED?
-price elastic -price inelastic
44
what is price elastic?
demand changes at a greater rate than price -prices goes up, demand falls=total revenue falls -price falls,demand increases=total revenue increase
45
what is price inelastic?
demand changes at a lesser rate then price -price goes up,demand falls a little bit=total revenue increase -price goes down,demand increases a little bit=total revenue falls
46
how can businesses make demand for their goods and services more inelastic?
-reduce competition -increase price -location
47
what is the definition of income elasticity of demand? (YED)
YED measures the responsiveness of demand to the change in income
48
what is income elastic?
a change in income causes a greater change in the quantity demanded
49
what is income inelastic?
a change in income causes a lesser change in the quantity demanded
50
what is the importance of YED?
it helps managers decide how sensitive their product is in terms of demand when income changes
51
what are the 4 types of goods?
-inferior goods -normal goods -normal necessity -luxury goods
52
what are inferior goods?
-this type will see a rise in demand when income falls -however if income rises, people will switch from label products to high end products -E.G. Primark, supermarkets
53
what are normal goods?
-when real incomes of customers increases, the demand for this type of good will increase -E.G. exam cars, furniture
54
what are normal necessity?
-something humans need in order to survive but tends to be less sensitive to change in real income -E.G. toilet paper
55
what is luxury goods?
-this good is a type of normal good but tends to be more sensitive to change in real income -E.G. -income^,gym member ship (vice versa)

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