The Market

Quick intro to the market for A-Level Business

What is the market?

Place that buyers and sellers come together to exchange products

What is the mass market?

Targeted at a wide range of people

Are mass markets highly competitive?

Yes

What is a niche market?

Small segment of a larger market

Are products usually unique in niche markets?

Yes

Which type of market can charge higher prices: mass or niche?

Niche

What is the size of the market?

Number of potential customers for a product

What is market share?

Proportion of market sales made by a business in comparison to others

What is market segmentation?

Dividing a market into groups

What can market segments be based on?

• Demographic

• Geographic

• Psychographic

• Behavioural factors

What is market positioning?

How a product is differentiated (quality/price map)

What is market orientation?

Focusing on customers

What is a dynamic market?

Fast changing market

What determines the pace of change in a market?

External environment

What is risk?

Possibility that events will not go as hoped

What is uncertainty?

Unpredictable events that affect business decisions