b2b- businesses providing products for individual consumers
b2c-many products (e.g. raw materials) are sold from one business to another
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what is a niche market?
Where a business targets a smaller segment of a larger market, where customers have specific needs and wants
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what is a mass market?
Where a business sells into the largest part of the market, where there are many similar products on offer.
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what are advantages and disadvantages of the niche market?
advantages-less competition, clear focus, more loyal customers
disadvantages-risk of overdependence on a single product, is successful it attracts competition, vulnerable to market changes
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advantages and disadvantages of the mass market
advantages-low cost production, customers needs/wants are less specific
disadvantages-product may not appeal to everyone
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what are the market structures?
perfect competition, monopolistic, oligopoly and monopoly
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describe perfect competition
-low barriers to enter
-large number of producers
-buyers and sellers are well informed about each other that the market price cant be controlled by one firm
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describe monopolistic
-barriers to enter are low
-large number of firms in the market selling slightly differentiated products
-they will try to brand their product through using promotional techniques
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oligopoly
-market is dominated by a few firms
-barriers to enter are high
-strategic pricing
-likely to encourage competitors who are interested by high profits and large growth
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describe monopoly
-only one firm in the market
-has to have at least 25% of market share
-price makers
-they can exploit consumers by charging high prices
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what is competitiveness?
the ability of firms to sell their products successfully within the market in which they are based.
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what are the main factors influencing competitiveness?
-Investment in new equipment and technology
-Staff skills, education and training
-investment in research and development
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