- Created by: James_Harrison16
- Created on: 13-02-20 16:09
What is a market?
- A place where buyers and sellers can connect with each other in order to exchange goods or services for money.
- Mass market - This is the market that is aimed at the general population.
- Niche market - This is a subset of the main market and addresses a specialist need.
Mass market pros and cons
- Economies of scale
- Marketing is straightforward
- Large volume of slaes mean high revenue
- Lots of competition
- Not flexible to demand changes
- Marketing can be expensive.
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Niche market pros and cons
- Charge premium prices
- Easier to target customers
- Flexible and able to follow trends
- Less competition
- Risky as demand may not be constant
- No economies of scale.
- Is the total volume (amount) of sales in a market or the total value in a market.
- The proportion (%) of a market that is taken by a business, product or brand. Callculated using the formula: (sales of x/Total sales in the whole market)x100
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- A market that is subject to rapid or continuous changes. The opposite to this is a staitic market.
Direct vs indirect competition
- Direct - Occurs between businesses offering similar products that appeal to the same group of consumers.
- Indirect - Involves businesses offering product that are not in direct competition but serve similar customer needs.
Risk and uncertainty
- Risk - The potwntial outcomes of a decision are known.
- Uncertainty - None of the outcomes are known in advance.
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