Business Theme 1 The market

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  • Created by: Zackyla
  • Created on: 20-03-17 19:05
Consumer good markets
where products such as food, cosmetics and magazines are sold.
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Markets for services
this can include services for individuals,such as hairdressing, or business services, such as auditing.
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The housing market
where people buy, sell and let property.
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Commodity markets
where raw materials such as oil, copper, wheat and coffee are traded.
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Financial markets
where currencies and financial products are traded.
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what does MARKETING involve?
Selling, research, designing, advertising and pricing.
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What is selling in a MASS market?
This is when a business sells the same product to all customers and markets them in the same way.
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Advantages of a business selling in a MASS market?
it can produce large quantities at a lower unit cost by exploiting economies of scale which might result in higher sales and higher profit.
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Disadvantages of a business selling in a MASS market?
there is a lot of competition which may mean that a business may spend a lot of money on marketing.
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what is selling in a NICHE marker?
This involves a business selling to a small customer group, sometimes with specific needs.
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advantages of a business selling in a NICHE market?
Avoids competition, easier to focus on the needs of a customer, can potentially charge premium prices.
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Disadvantages of a business selling in a niche market?
if it successfully exploits the niche market it still may attract competition. smaller businesses may be overrun by bigger ones, the business may be vulnerable as they're not spreading their risk. they rely on loyal customers and may easily collapse
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How is the market size estimated?
by calculating the total sales in a business.
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what are the 2 ways of calculating market size?
VOLUME AND VALUE
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VALUE:
this is the total amount spent by customers buying products.
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VOLUME:
this is the physical quantity of products which are produced and sold
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What is the term market share/market penetration used to describe?
the proportion of a particular market that is held by a business, a product, a brand or a number of businesses and products.
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MARKET SHARE FORMULA
(sales of a business / total sales in the market) x100
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Why are products given a brand name?
to DISTINGUISH them from other products in the market.
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in what market is branding particularly important in?
the mass market
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what might branding be used to do?
differentiate the product from those of rivals, create customer loyalty, help product recognition, develop an image and charge a premium price when the brand becomes strong.
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what does the term DYNAMIC mean?
something is likely to change
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what 5 things might a business do if it were dynamic?
GROW, SHRINK, FRAGMENT, EMERGE OR COMPLETELY DISAPPEAR.
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online retailing/e-tailing
the retailing of goods online.
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Brand name
a name, term, sign, symbol, design or any other feature that allows customers to identify the goods and services of a business and to differentiate them from those of competitors.
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E-commerce
conducting business transactions online
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market
a set of arrangements that allows buyers and sellers to communicate and trade in a particular range of goods and services.
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marketing
a management process involved in identifying, anticipating and satisfying customer requirements profitably.
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Mass market
a very large market in which products with mass appeal are targeted.
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Niche market
a small market, usually within a large market or industry where typically specialist products are sold.
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reasons for growth in existing markets and new markets:
Economic growth, innovation, social changes, changes in legislation and demographic changes.
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what might help businesses adapt to market changes?
Flexibility, market research, investment, continuous improvement in the increasingly competitive environment and develop a niche.
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what could a business use to attract customers?
lowering prices, making their products appear different to those of rivals, offering better quality products, using more powerful or attractive advertising or promotions and by offering 'extras' such as high-quality customer service.
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Other cards in this set

Card 2

Front

this can include services for individuals,such as hairdressing, or business services, such as auditing.

Back

Markets for services

Card 3

Front

where people buy, sell and let property.

Back

Preview of the back of card 3

Card 4

Front

where raw materials such as oil, copper, wheat and coffee are traded.

Back

Preview of the back of card 4

Card 5

Front

where currencies and financial products are traded.

Back

Preview of the back of card 5
View more cards

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