the market

  • 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 

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 priceseasier 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…


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