L1 - Markets
- Created by: graciecurtis
- Created on: 28-03-22 11:26
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- WHAT ARE MARKETS
- they are groups of people and businesses that buy products or services from other businesses
- there are lots of markets and these are usually broken unto smaller markets
- TYPES OF MARKETS
- housing
- groceries
- financial
- fast foods
- crude oil
- precious metals
- all activities involved to sell products that market profitably are:
- understanding customer wants and needs
- designing products to meet these needs
- understanding market dynamics
- developing successful products
- promoting the business and products
- size affects how businesses manage the market. the three market sizes are:
- mass
- targets all possible customers with the same or very similar products
- common for food, drinks, cars
- needs expensive large scale production facilities
- gives huge cost reduction, lower prices and large sales volume
- highly competitive and needs mass market promotion like TV or radio
- niche
- targets a small market segment with a specialised product but charges a premium price
- quality is crucial and production is small scale
- low volume but higher profit fewer competitors
- low customer numbers mean higher risk of failure if one changes supplier
- promotion uses specialist media and can use direct marketing
- larger businesses can push smaller businesses out
- individual
- relies upon technology e.g. the internet
- targets individual customers and offer tailor made products
- products include greeting cards specific to the customer but prices are very high
- mass
- online markets
- the biggest changes in the last 40 years
- called e-retail or e-commerce and most businesses now sell online
- likely to continue to grow and there are many benefits
- brands depend upon heavily on advertising and used in mass markets with lots of competition to:
- differentiate products from rivals
- create customer loyalty
- support product recognition
- develop an image
- charge a premium price
- there are two common methods to assess market size:
- value
- the amount spent by all cusotmers
- volume
- the amount of products sold
- value
- market share is the amount of market a business controls. it influences strategy and they can set a target to increase the market share.
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