Theme 1 Flashcards
(24 cards)
Niche Market Definition
A subset of the main market and caters to a particular segment of the market which is not being met by other competitors
Economies of sale
Defintion
Buying in Bulk allows you to negotiate a cheaper price
Niche Markets
+ and -
+
Less competitors
Able to charge a higher price
Easier to target customers
-
Lower Sales
Higher costs to make the products
Risky as demand will not always be their
Market Share Calculation
(Sale of a business/ Total sales in the market ) x100
Dynamic Market Def
A dynamic market is one that is subject to rapid or continuous change
Causes of Dynamic Change
Technology
Competitors
Trends
Customer needs
Economy
Legislation
Online retailing Def
Online Retailing involves shoppers ordering goods online and taking delivery at home
Online Retailing
+ -
+
Don’t have to pay rent for a physical store
Customers can buy goods 24/7
-
Can’t touch the physical product
Delivery inconvenience
Competition Def
Occurs when two or more businesses act independently to supply goods to the same group of consumers
Direct Competition Def
When a business produce similar goods that appeal to the same group of customers
InDirect Competition Def
When different businesses make or sell products that are not in direct competition but compete for the same customers
Direct and Indirect Examples
Direct: Coke & Pepsi
Indirect: Asda & Aldi
Risk Def
Something that can be planned for, outcomes can be anticipated or planned for
Uncertainty Def
Is caused by unexpected events outside the business
Product Orientation Def
An approach to a business which places the emphasis on the product itself and production process
Market Orientation Def
An approach to a business which places the needs of customers at the centre of the decision making process
Distribution
Def
The process of getting the right product or service to the consumer in the right place
Distribution
Def
The process of getting the right product or service to the consumer in the right place
4 stage Distribution
Manufacture
Wholesaler
Retailer
Consumer
3 Stage Distribution
Manufacture
Retailer
Consumer
2 Stage Distribution
Manufacture
Consumer
Benefits of Online Distribution
Niche Markets can reach a wider audience
24/7 access for customers
Reduces costs
Why might Manufacturers use 3 stage distribution
Most manufacturers like to sell directly to the retailer, because retailers are spread across the country giving manufacturers the distribution and increase volume of Sales
What a the 4 factors of choosing a distribution channel
Nature of the Product
The market
The nature of the business
The size of the business
