what are markets?
they are a meeting place between buyers and sellers, where goods and services are exchanged for money
global markets? + benefits?
selling goods and services overseas
- more sales
- spreads risks
- economies of scale
what is market share? and what is it important for?
the sales of a firm relative to market size
important for sales, growth, profits and economies of scale
what are seasonal markets? + examples?
selling products related to season
e.g ice cream (summer), diet plans (january), fireworks (halloween)
what is mass marketing? + examples?
aiming products at a whole market (rather than smaller parts)
e.g ketchup, teabags, washing powder
what are the advantages of mass marketing?
- produce a large number of standardised products
- untargeted marketing makes it cheaper
what are the drawbacks of mass marketing?
- left with lots of unused products if demand falls
- large scale production (expensive to set up)
what is market segmentation?
this is breaking down the market into sub-groups that share similar needs
what are 4 examples of market segmentation?
demographic - gender, age, social class
geographical - location, region
psychographic - personality, emotions
lifestyle - interests, attitudes
what is niche marketing?
catering the demand for products that main suppliers aren’t selling
what are the advantages of niche marketing?
- can charge higher prices
- lower promotion costs
- avoid competition (sell to overlooked markets)
what are the drawbacks of niche marketing?
- attracts competition
- no economies of scale
- hard to expand
- harder to raise finance (classed as a high risk business)
what is important to consider when using market segmentation?
- that it is recognisable
- that it is targetable
- must be different from other segments
what are the benefits of segmentation to customers?
- fits with their budget and lifestyle
- they receive a product close to -their expectations
- they can be aware of of new features as marketing is targeted
what are the benefits of segmentation to the business?
- gain better knowledge of their customers (can suit their needs)
- target advertising specifically (lower costs)
- increase brand loyalty
- higher profits
what is a monopoly? barriers of entry?
a single producer within a market, they are price makers
(they erect barriers to prevent others from entering the market)
what is a oligopoly? barriers of entry?
few businesses dominate the market, with strong brand identity
(some barriers to entry)
what is perfect competition?
many small firms produce virtually identical products at similar prices
- no market/price leaders
- no businesses can influence others
(they are unrealistic conditions)
what is monopoly competition? barriers of entry?
a large number of small businesses in competition with each other
(few barriers to entry)
what is consumer protection?
the safeguarding of customers when they buy goods and services, against unfair practices in the marketplace
why do consumers need protection?
- businesses try to sell faulty products (e.g whirlpool)
- customers can be vulnerable
- businesses can hide the details with small print
- consumers are desperate
consumers are not experts
what is consumer protection legislation?
when consumers buy goods, contracts are formed between customer, retailer and producer
what does consumer protection legislation do?
clarify nature of new contracts
establishes requirements
what is the consumer rights act 2015?
goods must be satisfactory, free from faults, as described, and durable
