The market (2)
- Created by: alexialexi
- Created on: 14-12-20 22:52
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- The Market
- Market changes
- Adapting to change
- flexibility, market research, investment, improvement to the competitive market, develop a niche
- Size
- stable for products sold constantly
- some markets grow and others are in decline (need for the product ceases to exist e.g. coals and fuels)
- Nature
- markets are in a state of flux- constantly changing
- large/diverse sector
- products are updated, modified or relaunched
- new entrants in market/ wider range& extention of a line
- New markets
- some markets disappear or develop
- due to launch of new products
- big source is the development of 'emerging economies'
- some markets disappear or develop
- Adapting to change
- Online retail
- people prefer to shop from home/ cannot access traditional shops
- personal info is easily gathered- helps with offers and product suggestions
- lower market costs and selling costs
- distance is not an issue
- open 24/7
- more flexibility- instant and frequent updates, deal od the day
- Effect of competition
- business
- added pressure, needs to sell products(lower prices, better quality, advertisement and promotion)
- costs money& reduces profit
- need to reduce competition- create obstacles or take over rivals
- added pressure, needs to sell products(lower prices, better quality, advertisement and promotion)
- customers
- benefit from competition as there is more choice
- can be exploited in the absence of competition
- business
- Risks and uncertainty
- pose threats to a business
- RISK- owners take action with unknown outcome, lost resources, setting up business is an initial risk, money spent on ventures that don't yet yield + results
- UNCERTAINTY- external influences on market e.g. new competition with superior goods, new trends, new legislation, new technology, recession, difficult to predict
- financial consequences on business
- decision making is difficult, especially with future investments
- Brands
- the creation of an identity for the business
- mass markets
- differentiate products from rivals
- customer loyalty
- product recognition
- strong brand = premium price
- the creation of an identity for the business
- Dynamic markets
- changes at a fast pace
- failure to adapt leads to failure
- changes at a fast pace
- Market changes
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