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mass market
aimed at general population
niche market
targets a subset of the main market that addresses a specialist need
Pros of a mass market
economies of scale
large volume of sales = higher revenues
Cons of a mass market
high competition
have to differentiate homogenous products
high volume production not flexible
Pros of a niche market
can charge premium prices
easier to target customers
less competition
Cons of a niche market
high risk as demand may not be constant
no economies of scale
market size
volume of sales or value
market share
sales of business x / sales of whole market x100
dynamic market
a market subject to rapid or continuous change
pros of online retailing
open 24/7
low overheads
can take order without staff
opportunity for fast growth
cons of online retailing
IT skills needed
competitive market
issues with returning goods
technical issues
risk
potential outcomes of a decision are known
uncertainty
no outcomes are known
product orientation
the business focusing on the product being unique and of highest quality
market orientation
the business focusing on a product meeting customer needs and demands
primary data
original data gather by the researcher that doesn't already exist e.g interviews, surveys
secondary data
data that already exists, collected by someone else
limitations of market research
inaccurate/misleading data
bias
poor reliability of data due to sample
pros of using ICT in market research
cost effective
reaches more people=more reliable
no staff required
market segmentation
an identifiable group of individuals where consumers share a characteristic or need e.g based on demographic, geographic, behaviour etc
market mapping
the process of using a graph illustrating competitors market positioning in order to identify a gap in the market
competitive advantage
when a business' product or service appears superior to the competition
types of competitive advantage
cost advantage
differentiation advantage
having higher profits than average
product differentiation
where a product is different from its competition in some way e.g reputation, customer service, value for money, product features
added value
the difference between the selling price and costs to create the product
ways to add value
design (unique features)
production (quality, efficiency)
marketing (brand differentiation)
convenience
packaging
benefits of adding value
can charge a higher price
protection against competitors with lower prices
customer loyalty
