Markets Flashcards
(63 cards)
What is a market
where buyers and sellars meet to exchange goods and services for money
What is a local market and an example
where customers will be in close proximity to sellers and can be local highstreet shops
What is a national market and an example
where customers are spread throughout the country or large area , supermarkets, fast food chains
What is a global market and an example
trade of goods and services to other countries car manufacturers
What is a consumer market
products and services bought by individuals for personal use or family use can be fast moving or durable
What is a fast moving consumer goods
sold quickly at low costs
What is a trade market
sales of goods and services between businesses, accounting, raw materials
What is a seasonal market
a market that will experience seasonal variations in output/sales such as ice cream or christmas trees
What is competition
rivarly between businesses selling similar products snd services with goal of achieving revenue, profit and growth in market share
What is a niche market
a smaller specialised market segment where customers have more specific needs and wants
What is a mass market
the largest partnof the market where many similar products are offered by competitors and customers are less specific about needs and wants
Benefits of mass market
-produces large numbers of relatively standerdised products so cost per unit can be lower as benefit from economies of scale
-less risk focussed on one large market and wider customer base
-lower market research costs
Drawbacks of mass market
-compeition can be fierce so products will need to be heavily differentiated
-if demand falls left with unused resources
-must be able to produce goods ok large scale (expensive)
Advantages of niche market
-often charge higher prices
-focus on needs so potential for more customer loyalty
-promotion costs lower as can target specific target group not broad
-sell in markets overlooked or ignored by other businesses so avoid comp
Drawbacks of niche
-cannot benefit from economies of scale
-attract competition if successful and business may be able to mass prosuce
-market change
Why is high market share important
-increases profits
-benefit from economies of scale
-price making power
-attract shareholders
Whats market trend
change and developments in the buying and selling of products and services in market
What is market segmentation
splitting a large market into different sub groups of customers based on the basis of them having similar characteristics or needs and having wants to help target the marketing
What demographic may customers be split up on
gender,age,socioeconomic class
What else can customers be split on
geogrphical location- different ingredients in different countries
lifestyles-healthy or environmental concerns
culture- religion
physographics-different attitudes, opinione and lifestyles ( emphasis on features such as family sized car)
Benefits of market seg
enables business to understand and meet jeeds of customers more effectively
increased brand loyalty and repeat customers
reduced price sensitivity so may charge higher prices
Drawbacks of mark seg
increased costs linked to research and product development
additional market acivitirs as business target more segments
lose focus on core identity or products due to wide tange on offer leading to fall in quality or failure to exploit economies of scale
Benefits to customer of mark seg
-targeted marketing sonare aware of products
-fit needs and wants better
-fit their budget and lifestyles
- feel value for money
What is perfect competition
many small firms produce vertically identical products at similar prices
