Markets
- Created by: SiobhanGarnham-Parks
- Created on: 05-01-16 13:27
View mindmap
- Markets
- Mass Markets
- A large market with high sales volume
- Products are aimed at large groups of consumers for that particular product.
- For business where large quantities of products need to be produced
- Higher sales and profits
- Niche Markets
- A small part of a larger market with specific characteristics.
- Smaller consumer group with specific needs.
- Businesses avoid competition and is unable to support competing companies. This means the needs of the customer can be focused on.
- The business can charge higher prices.
- Market Size
- Value is the amount spent by customers buying products.
- Volume is the physical quantity of the product produced and sold.
- Market Share Importance
- Market Share = sales of a business/total sales in the market x 100
- So a business can see how well they are doing in competition.
- To see who has the highest share of the market and what may need changing in the business
- Influence other businesses
- Influence strategy and objectives
- Indicate the business' success or failure
- Dynamic Markets
- Markets change; they grow, fragment, shrink and disappear
- How Markets Change
- Size, they grow and decline
- Updates,modification and relaunches increase choice.
- Threats from new entrants to the market
- New emerging economies launch new products
- Why new markets occur
- Economic growth
- Innovation
- Social change
- Changes in legislation
- Demographic changes
- Markets adapting to change
- Flexibility is needed
- Market research is needed
- Investment to fund new ventures
- Developing a niche
- Continuous improvement due to competition
- Risk and Uncertainty
- There is a risk of investing time, money and effort for it to not pay off
- new competititon can influence businesses
- Consumer taste changes
- New technologies change market demand
- Natural disasters can reduce production or sales level
- The economy can change
- Mass Markets
Comments
No comments have yet been made