the market

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 

Marketing involves

• 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…