Markets - Business opportunities

  • Markets

including: market research, types of markets, market structure, S P E, PED/YED.

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What are the key characteristics of perfect competition ?
1. large number of businesses competing
2. no market leaders
3. homogenous (no difference) goods
4. equal access to technology
5. consumers have full market info
6. no barriers to entry
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What are the key characteristics of a monopoly ?
1. a single producer within a market
2. create barriers to prevent others entering
3. price makers- significant influence on price
4. over 25% of market share
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What are the key characteristics of an oligopoly ?
1. only a few dominate
2. differenciated products with strong brand identity
3. brand loyalty through promotion
4. some barriers to entry e.g. high start up costs
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What are the key characteristics of
monopolistic competition ?
1. large number of relitively small businesses
2. few barriers to entry
3. similar products slight differentiation
4. relitively weak brand identity
5. not price takers, a limited degree of control over price
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What is Mass Marketing ?
When a business targets its advertisements to the whole market, to all possible consumers in the same way.
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Advantages and disadvantages of
Mass Marketing
Advantage- Economies of scale due to high production output.
Disadvantage- Cost of setting up can be high and coompetition could be a challenge
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What is Niche Marketing ?
A business targets a smaller section of a larger market where customers have specific needs and wants.
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Advantages and Disadvantages of
Niche Marketing
Advantages - a higher price can be charged,
businesses are able to focus on strengths,
lower start up costs
Disadantages - must be a full understanding of desires and needs of the niche,
can dissapear quick due to changes in tastes etc
mass markets may
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What is Market Segmentation ?
A subgroup of a larger market that all have common features, businesses will produce and market products aimed at these segments.
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Explain the 3 types of segmentation
1. Demographic - age, social class, gender, income.
2. Psychographic - personality and behaviours e.g.attitudes, lifestyles, opinions.
3. Geographic - Regions of the country e.g. rural, urban, suburban.
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Global market definition and Advantages
Selling goods or sevices to overseas markets, different marketing strategies - packaging, pricing, promotion.
Advantages - Higher earnings,
Spread risk,
Saturation of home market,
Economies of scale
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Whats a Trade Market ?
Selling and supplyinf to distributers, retailers, wholesalers, and other supply chain businesses.
Business to Business
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What is a seasonal Market ?
A seasonal market is a business that thrives only at certain points of the year e.g. ice cream in summer, mince pies in winter. They have a critical sales period.
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What is Market Equilibrium ?
Where the quantity that consumers are willing to buy, meets the quantity that suppliers are willing to supply.
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What is the imprtance of demand and supply in the market ?
They reflect the prices and quantities
of consumer goods and services within an economy.
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Why do consumers need protection ?
Because businesses understand how to manipulate customers' behaviour through controlling price, competition and their goods and services.
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Who protects consumers ?
The consumer protection legislation - These reglate that businesses are following the laws e.g.
The sale and supply of goods, Consumer credit act, Trade descriptions and distance selling
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Other cards in this set

Card 2

Front

What are the key characteristics of a monopoly ?

Back

1. a single producer within a market
2. create barriers to prevent others entering
3. price makers- significant influence on price
4. over 25% of market share

Card 3

Front

What are the key characteristics of an oligopoly ?

Back

Preview of the front of card 3

Card 4

Front

What are the key characteristics of
monopolistic competition ?

Back

Preview of the front of card 4

Card 5

Front

What is Mass Marketing ?

Back

Preview of the front of card 5
View more cards

Comments

Joseph August

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Great course!
Joseph August

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After I passed this course I finally realised how important it is to use the most advanced maketing tools to make your business more lucrative compared to your rivals. I even didn't suspect that the use of https://priceva.com/repricing could bring me so much profit. Before that I didn't pay much attention to my pricing policy because the flow of customers was considerable but now at covid times I have to use every opportunity to be ahead of my competitors :)

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