- Created by: parker123
- Created on: 06-11-18 10:11
Examples of markets
- Consumer goods markets- products such as food, cosmetics and magazines are sold.
- Markets for services- can include services for indiviuals, hairdressing & business services.
- Housing market- where people buy, sell and let property
- Commodity market- where raw materials such as oil, copper, coffee are traded
- Financial markets- where currencies and financial products are traded
- identifying the needs and wants of consumers
- designing products that meet these needs
- understanding the treats of the competitiors
- telling customers about products
- charging the right price
- persuading customers to but products
- making products available to convient locations.
MASS MARKETS-- this is when a business sells the same products to all consumers and markets them in theh same way.
- the number of consumers is huge. meaning that businesees can produce large quantities at a lower unit cost by exploiting economies of scale. may result in higher scale & higher profits.
- However there is a lot of competition in mass markets therfore business spend lots of money on marketing.
NICHE MARKET-- is a small segment market- a segment that has sometimes gone 'untouched' by larger businesses.
- involves selling to small customer group with specific needs.
- small firms can survive by supplying niche markets. they also may aviod competition. so they can charge premium prices. easier to focus on customers needs & wants.
HOWEVER-- if a business succesfully expolits a niche market it still may attract competition, and niche markets are unable to support competing firms and are vunerable so may collaspe if big firms enter the market.
MARKET SIZE-- is caluclated by: the total sales of all businesses in the market , it can be estimated by either;
- VALUE- is the total amount spent by sumtomers buying products.
- VOLUME- this is the physical quantitiy of prosicts which are produced and sold.
MARKET SHARE/ MARKET PENETRATION- describes the proportion of a particular market that is held by a business, product. Its shown as a percentage and is calculated by; -- sales of a business /total sales in the market x100
- measurement of market share is important as it indictates a business leader this can influence the strategy of a business.
BRANDS-- businesses establish themselves in markets by giving their roducts a brand name, they are given this to distingish them from other products. its important in mass market as products are competing for share of the market. Branding used to:
- differentiate the product from those rivials, develop an image, create customer loyalty, help product recognition, charge premium price when beand becomes strong.
DYNAMIC MARKET-- Markets do not remain the same over time, the are dynamic, so likely to…