Markets

Question 1

What is a market?

Answer 1

Place between buyers and sellers where goods and services are exchanged.

Question 2

Describe market share.

Answer 2

Measures the sales of a firm relative to market size.
Calculation:
Sales of a business divided by total sales in market x100

Question 3

Why’s market share important?

Answer 3

might indicate that a firm is market leader. So can influence decisions and strategies.

Question 4

Describe global markets.

Answer 4

Selling goods or services overseas.
Advantageous as can lead to higher earnings, Economies of scale, and spreads the risk.

Question 5

Describe seasonal Markets.

Answer 5

Depends on the season, for example ice creams more popular in summer and fireworks in November times.
Has huge impacts on business activities as they have critical sales period.

Question 6

Describe Trade Markets

Answer 6

Focuses on selling to distributers, retailers and wholesalers instead of consumer. Aim to increase demand.

Question 7

Describe mass marketing.

Answer 7

A business aims products at a whole market rather than particular parts of the market. E.G Teabags

Question 8

Advantages of mass marketing

Answer 8

Company can produce large numbers of standardised products.
Low cost operations

Question 9

Disadvantage of mass marketing.

Answer 9

Must be able to produce goods on a large scale which is expensive.
If demand falls, firm will be left with unused products.