What is the purpose of market research
To identify products and services a business can develop to help satisfy the needs and wants of their customers
What is market segmentation?
When businesses seperate groups of consumers into similar characteristics (e.g.. Age, lifestyle)
What is a mass market and how does it occur?
A mass market is when products are aimed at a broad market segment, this occurs when business sell their products to most of the market (e.g. Kellogg’s cornflakes cereal)
What is a niche market and how does it occur?
a niche market products are aimed at a small section of the market, this occurs when business aim to satisfy the needs of a small group within a wider market (e.g. gluten free cereal)
what are some advantages of a mass market?
1)there is a low average cost due to large scale of production
2)lower prices cause more affordability, leading to higher sales
What are some disadvantages of a mass market?
1) The products are less unique
2) The low prices lead to lower profit margins
What are some advantages of a niche market?
1)The products are specialized and unique
2)The high prices can allow for business to earn a higher profit margin
what are some disadvantages of a niche market?
1 )The products have a high average cost due to small scale production
2) The high prices cause less affordability and lead to less sales
How can the size of a market be measured
1) The sales volume
2) The sales revenue
1A) What is sales volume?
1B) What is sales revenue?
1A) Sales volume is the number of products sold
1B) Sales revenue is the price x quantity sold
2A) What is market share?
2B) How can market share be calculated
2A) Market share is the percentage of sales a business has in a market
2 B) (Sales of a business/total sales in the market) x 100
What is a brand?
A Brand is a name, image or logo that helps a product/service stand out from its competitors
What are the advantages of brands?
1)Brands are protected by law and unique adding product differentiation
2)Brands add value, allowing for businesses to increase the price customers are willing to pay
3)Brands allow businesses in mass markets to stand out from competition
4)Brands allow for business to increase the price customers are willing to pay
1A)What is a dynamic market?
1B) What are the 4 areas to consider in dynamic markets?
A dynamic market is a market that continuously changes
1B) Online retailing, How markets change, Innovation and market growth, Adapting to change
What are the advantages of online trading?
1)Provides business access to more customers (internationally)
2)Enables longer trading hours (24/7)
3)Cheaper to run (no stores needed)
4)Can conduct primary research easily by tracking consumers behaviors on their websites
5)Consumers can shop at a time that suits them
What are the disadvantages of online trading?
1)High costs for website maintenance and security
2)Hard for small businesses to break through
3)Lack of personal contact with customers
4)Customers may find it hard to ask for help and receive customer service
5)May be there a security breach and fraud
How do markets change?
1)Changing consumer taste and preferences (customers wanting electric vehicle)
2)Changing demographics
3)Change in the amount of competition
4) Change in legislation
1A) What is product innovation
1B) What is process innovation
1A) launching new or improved products onto the market
1B) Finding better ways of producing products or delivering services
What is the benefit of product innovation?
1)higher prices and profitability
2)Added value to business
3)Builds customer loyalty
4)Better business reputation
5)Increased business recognition
6)Can increase market share
What is the benefit of process innovation?
1)Reduced costs
2)Improved quality
3)Greater flexibility
4)Increased efficiency
5)Higher profits
1A) What is market growth
1B) How can market growth occur
1A) Market growth is increase in size of a market over a specific period
1B) Market growth can be caused by:
Increase in population size
Increasing in income
Changing taste and preferences of consumers
How can businesses adapt to change?
1) Create flexible business structure
2) Meet customer needs
3) Invest in staff training
4) Innovate or invent a product (to become first mover)
1A) What is direct competition?
1B What is indirect competition?
1A) Direct competition is when business are targeting customers with the same product as competitors. (e.g Burger King and Macdonalds)
2A) Indirect competition is when firms sell different products but compete for the same disposable income (e.g Netflix and Youtube)
What is the benefit of competition for customers?
1)Businesses offer lower prices
2)Businesses produce better quality products
3)Business provides better customer service
-
Unit 1.1125
-
unit 1.1216
-
Unit 1.1311
-
Unit 1.2112
-
Unit 1.2213
-
unit 1.235
-
unit 1.24 PED19
-
INCOME ELASTICITY OF DEMAND UNIT1.255
-
THE DESIGN MIX UNIT 1.31 and PROMOTION 1.3227
-
PRICING STRATEGY UNIT 1.33 AND DISTRIBUTION 1.3426
-
MARKETING STRATEGY 1.35 & APPROACHES TO STAFFING 1.4130
-
RECRUITMENT SELECTION AND TRAINING 1.42 AND ORGANISATION DESIGN 1.4313
-
Unit 1.4.4MOTIVATION IN THEORY AND LEADERSHIP 1.4.519
-
UNIT 1.5.1 Role Of An Entrepreneneur And 1.5.2 ROLE OF AN ENTREPRENEUR13
-
UNIT 1.5.3 BUSINESS OBJECTIVES14
-
2.1.1 Internal Finance11
