22450657
Description
Flashcards by Samsoor Nasim, updated more than 1 year ago
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Created by Samsoor Nasim
almost 5 years ago
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| Question | Answer |
| Niche market | A niche market is on where a business targets a smaller segment of a larger market where customers have specific needs and wants |
| Niche market advantages | Less competition Clear focus Builds up specialist skill and knowledge Can charge a higher price Profit margins are higher customers tend to be more loyal |
| Niche market disadvantages | Lack of economies of scale Risk of over dependence on a single product or market Likely to attract competition if successful Vulnerable to market changes |
| Mass market | Where a business sells into the largest part of the market where there are many similar products to on sale |
| Mass market key features | Customers form the majority of the market Needs and wants are more general and less specific Associated with high production output and capacity Success usually associated with low cost operation, heavy promotion, widespread distribution and market leading brand |
| Volume of sales | The quantity of products sold |
| Value | The total amount spent by customers |
| Market size formula | Market size this period/Market size last period - 1 x 100 |
| Dynamic markets | A dynamic market is one that is subject t to rapid or continuous change E.g. Online retailing |
| Online retailing | Online retailing is the selling of goods through the internet E.g. Amazon |
| Online retailing advantages | Easy to access Reduced overheads Potential for rapid growth Can widen your market Customer trust |
| Online retailing disadvantages | Website costs Infrastructure costs Security and fraud Legal issues Website costs Customer trust |
| How do markets change? | As supply decreases prices increase As supply increases prices decrease As supply stays constant prices fluctuate as demand fluctuates |
| Innovation | Creating more effective processes by implementing new ideas or creating dynamic products |
| Innovation advantages | Improved productivity and reduced costs Helps build a brand Establishes an advantage over competitors Builds a strong organisational culture which attracts talent Higher sales and profits |
| Product innovation | Launching new or improved products or services onto the market |
| Product innovation advantages | Greater perceived added value Higher prices Build early customer loyalty Enhances reputation as an innovative business Increased market share |
| Process innovation | Finding better or more efficient ways of producing existing products or services |
| Process innovation advantages | Reduced costs Improved quality More responsive customer service Greater flexibility of operations |
| Market growth | The percentage growth in the size of the market, measured over a specific period |
| Market size formula | N |
| Adapting to change | Act decisively Demonstrate momentum |
| How does competition affect the market | More competition means the business has to be market orientated rather than being product orientated More competition means a business has to produce good quality products in order to satisfy consumer needs |
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