http://www.economist.com/blogs/newsbook/2011/09/how-save-euro
Thursday 22 September 2011
Niche Market
Niche- firm will concentrate on a specific section of market. e.g: e4/mtv rock
Advantages-
- Unique
- More specific advertising
- Loyal customers
- Higher prices benefit company
- Tailor needs for target market
Disadvantages-
- higher price for customers
- expensive supplies
- less sales in comparison to mass
- could be less income
- high risk of failure
- market can only grow so far
- less demand
Mass Market
mass market- when a firm aims a product/ service at majority of market e.g: itv/bbc
Advantages-
- Larger target market
- Higher sales possible
- Easier access to products for consumer
- can be lower cost as more consumers
- guaranteed income
- cheaper production
- cheaper supplies
- more variety
Disadvantages-
- Lots of people will have different opinions so can't satisfy everyone
- selective in way you advertise
- more competition
- higher costing
Markers in a constant state of change! Why?
- people wants + needs always change
- trends
- amound of money avilable to purchase product
- over-production
- increase competition
- demand changes
- teachnology changes and develops
- prices change
- suppliers change
- share prices lower
- over borrowing
- political/ social reasons
- economic situation
Market Analysis
- Look for gap in the market
- investigating an individual market
- studying other similar markets
- is the market in decline?
- when/ where could your business be a sucess?
- market share/ growth
- identify market leader
- investigate prices
- start up costs/ market costs (product price)
- economic state
- look at competition
What do you understand by market segments? How do these impact on businesses?
Different categories within a market.
E.g: age, gender, income, socio-economic, usage rate, purchase occasion, demographic
When designing their products/ services it has to suit these categories.
E.g: age, gender, income, socio-economic, usage rate, purchase occasion, demographic
When designing their products/ services it has to suit these categories.
Why would a business want to enter a growing market?
- More opportunities for successful businesses
- Less fierce competition
- Benefit from economics scale
- Less chance of failure
- More room to expand
If a market is shrinking, the market growth will be negative, How would this affect the business within that market?
- Less business
- Possible bankruptcy
- Less competition so more fierce
- Loyal customers could help
- Tense little room for new ventures
- Leader's profits would increase
- Downward spiral as less customers
- Prices increase
What is the calculation for a market share?
market share = sales of product
total market sales X 100%
How will small and large markets differ?
Small Markets- Better quality, smaller costs, less tax, higher product prices, loyal customers.
Larger Markets- Larger costs, more tax, more variety and sales, lower product prices, more money for promotion, higher sales, higher market share.
Larger Markets- Larger costs, more tax, more variety and sales, lower product prices, more money for promotion, higher sales, higher market share.
If an entrepreneur is moving into a particular market, what considerations would they have?
- Target client
- Customer Satisfaction
- Market gap
- Funding- sponsorship, government funding
- Amount of competition
- How much product/service will charge?
- Who is the target market?
- How to advertise
- Overall costing
- Running costing
- place --> location --> the way of distribution
- cost to achieve break-even
- Trends
- Possible Tax implications
- Copyright
- Moral/ethics
- interests of stakeholders
- wages for staff- training, min wage
- health and safety implications
- government laws
What do you understand by a market?
A market is where both buyers and sellers meet to buy or sell something.
Introduction
This blog will contain information about the current state of the economy and will cover the main points of my revision.
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