Business Exam : Marketing and People

What is a mass market?

Where a business sells into the largest part of the market, where there are many similar products on offer

What is a niche market?

Where a business targets a smaller segment of a larger market, where customers have specific needs and wants.

What are the characteristics of a mass market?

* Customers form the majority of the market.
* Customers need and wants are more ‘general’ and less ‘specific’.
* Associated with higher production output and economies of scale.

What are the characteristics of a niche market?

* Less competition.
* Clear focus - target particular customers.
* Builds up specialist skill and knowledge.
* Can often charge a higher price – customers are prepared to pay for expertise.
* Profit margins higher.
* Customers tend to be more loyal.

What is market share?

Proportion of total sales in a market made by one business.

Number of products sold by the business / total market sales X 100

What is market size?

The total volume of a given market.

Name examples of niche markets.

Gamers, Health and Fitness, Remote workers.

Name examples of mass markets.

Target, Amazon, Supermarkets

What is a dynamic market?

One that is in a rapidly changing business environment.