1.1.1 the market

Mass market

Market aimed at general population

Niche market

A subset of a normal market that caters for specific consumer needs and wants

Market size

Measured by volume of volume or value

Market share

The percentage of the market that a business product or service has

Innovation

New ideas brought to the market

Homogenous

Same kind; alike

Business risk

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

Uncertainty

When businesses are unable to predict external shocks or future events

Niche advantages and disadvantages

+less competition

+clear focus

+builds specialist knowledgeable

+profit margins often higher

-lack of economies of scale

-risk of dependence of single product or market

-vulnerable to market change

Mass market advantages and disadvantages

+higher revenue

+economies of scale

+brand awareness

-fixed costs

-competition

-prices

Dynamic market

Market that is subject to rapid or continuous changes

Online retailing advantages and disadvantages

+lower fixed costs

+open 24/7

+wider product range

-easier access to international markets

-shipping payment

-refund costs

-worse customer service

-can’t physically touch products

-relying on technology

Market growth

Subtract the marker size for year 1 from market size of year 2. Divide result by market size in year 1 and multiply by 100