1.1.1 The Market

Mass markets definition

Large groups of consumers with similar needs or desires

Niche markets definition

Small segments of consumers with specific needs or interests

Example of a mass market

Supermarket

Example of a niche market

Gymshark

Example of market size

Plant based foods

Example for market share

Tesco holds around 27%

Market size definition

Total sales or potential sales of a product in a specific market

Measured by potential customers or total revenue

Market share definition

Percentage of total sales in the market held by a company

Market share equation

(Sales / Total sales of whole market) x 100

Brand definition

A brand is the name, symbol or design that identifies a product or company

Dynamic market definition

A market that is constantly changing as customers tastes and preferences change

Example of online retailing in dynamic markets

Quick deliveries

simple returns

online payments - Klarna, Paypal

Business risk definition

Possibility a business will have lower than anticipated profits or experience a loss rather than taking a profit

Uncertainty definition

When businesses are unable to predict external shock or future events

Example of uncertainty

Pandemic

Example of financial commitments

Mortgage

Car repayments