The Market Flashcards
(18 cards)
The Market
A market is anywhere where buyers and sellers come together to transact with each other
->either face to face or online
Types of market
Mass market- a product aimed at a very large proportion of people in the market, these products have universal appeal.
Niche market-a product which smaller groups of people in the market will be interested in
One thing mass and niche markets need to do, to be successful
Successful mass- long lasting wide appeal, spans across demographic. Eg Heinz ketchup
Successful niche- strong appeal to limited audience
Eg bounty
Steps to go your niche
- Identify a market niche
- design a product tailored to the niche
- keep alert to the changing tastes within the market
- work to find ways of helping your niche grow
Market size
Made up of the total number of potential buyers of a product or service within a given market
Market share
Percentage of total sales or total output that a business has in a specified market
Branding
A brand is a product with a unique character for instance in design or image
Dynamic market
Firms that operate in markets which change very quickly and are unpredictable like the smartphone market
Competition
Some markets are very competitive which can actually mean much better prices for the consumers making firms operate more efficiently
Risk and uncertainty
Risk- planned for, looks at all data and fins a possible risk and plan for it.
Uncertainty- even if all managers thought through all the possible risks this couldn’t have been predicted or planned for eg, COVID
Product and market orientation
Product- the business develops products based on what it is good at joking or doing
Market- the process of product development and creation are focused on satisfying the needs of consumers
Saturated market
A market that has already been done, not much of market left
Market segmentation
What kind of people are in the market.
What are their preferences
What shop they shop in the most
What prices are they used to paying
Secondary data
Data that already exist and which has been collected for a different purpose
Example sources:– google, government, magazine, market research reports
Pros- cheap, already made data, easy to access, quick
Cons- not specific, not got control over quality of data, not reliable, out of date, not valid
Limitations of market research
Validity- are the results meaningful?
- are they necessary
Size of sample- too small=meaningless?
Bias- be accurate so it can represent whole population
Money- expensive
QuanTITve research
Numerical data such as= 95% of people like chocolate
Concerned data such as “how many” “how often”
Based on larger samples of people so it’s more valid
QuaLITive research
Based on opinions, attitudes, beliefs, and interests
Answer questions such as “why” “would”
- aims to understand how customers behave/ how they respond to a new product or service
Examples of qualitative research is focus groups and interviews
How to conduct good market research
- Set sound research objectives
- write n unbiased questionnaire
- choose right sampling method
- get a high enough sampling size
- leading to reliable fundings
