Class notes
markets topic notes unit 1 as level business
- Course
- Institution
aesthetic business studies notes for Edexcel as level unit 1: markets
[Show more]
Seller
Follow
joiadejbakhsh
Content preview
● MARKETS AND MARKETINGDifferent types of markets:
➔ Consumer goods market: where products such as food, cosmetics etc are sold
➔ Service markets: hairdresser, editing, etc
➔ Housing market: properties
➔ Commodity market: raw materials trading
➔ financial markets: currency trading
What is marketing and what does it do?
- Marketing is what helps a business sell its products
- This is done by:
Identifying the needs of consumers
Designing products to meet these needs
Understanding competition
Finding the right price to charge
Making products easily accessible
Mass markets
- when a business sells the same product to all consumers and markets them in the same
way. Ex (cereal )
- Businesses can produce large quantities at a lower cost (economies of scale)
- Lots of competition
Niche markets:
- a small market segment, a segment that has been untouched by a larger business.
- They often survive by supplying rival markets
- Less competition = less change
- Unique Selling Point
- Individual market: tailored to a customer's needs. Product or service (therapy)
MARKET SIZE:
- Can be calculated by the total sales of all the businesses in the market
- There is value and volume
- Different markets have different market sizes
- Volume- how many products are sold
- Value: the total amount spent by customers buying products
MARKET SHARE;
❖ the proportion of a particular market that is held by a business, a product, a brand, etc.
❖ Indicates if a business is a market leader
❖ Indication of success or failure to a business
, ❖ This way they can respond to it with a marketing strategy
❖ ex. coca-cola wants to know how much diet coke they've sold.
market leader benefits:
★ Increased sales
★ Can increase price
★ Low risk, can try out new products
Mini concepts:
Economies of scale:
- Buying in bulk
- Discectomy of scale: there is a limit, cannot produce more- not enough
warehouses ect. Outsourcing. It would cost more
Segment:
- Retail companies- perishable goods/ non perishable -> segments within a
business
- Segments within an industry: ex, beauty industry
Rapid growth in one segment:
Why: new products- new marketing strategy
Result: sales will be more consequence related
INNOVATION AND MARKET GROWTH:
Markets grow due to:
➔ innovation (ex. Apple inc)
➔ Social changes: can impact market share, sales, and volume, Due to new demands
➔ Changes in regulation: plastic ban, co2 emissions-
➔ Demographic changes: expats looking for their local products in foreign places
ADAPTING TO CHANGE:
● Ex. pandemic- making e commerces
● Having a backup
● Being flexible (could be with staff training)
● Invest in new markets
● Diversifying customers ( comes at a price)
HOW COMPETITION AFFECTS THE MARKET
● Competition is the rivalry that exists between businesses in a market.
● Competition has an impact on both businesses and consumers in the market.
Businesses:
- Competition puts businesses under some pressure.
, - encouraging customers to buy their products in preference to those of rivals.
methods include:
★ lowering prices
★ making their products appear different
★ offering better quality products
★ using more powerful/ attractive advertising
★ offering 'extras', such as high-quality customer service.
All of these methods cost money = reduce the amount of profit a business can make.
Other methods to survive
- take over their rivals (purchasing a rival in the market)
- create obstacles that make it difficult for others to enter the market.
- legislation that prevents businesses restricting competition using practices that are
considered unfair.
Consumers:
- Consumers benefit from competition in markets.
- More choice= bigger range of models, styles, colours and endless variations in
specifications.
- Better-quality products and lower prices.
RISK AND UNCERTAINTY:
RISK :
● decision-making situations under which all potential outcomes and their likelihood of
occurrences are known to the decision-maker,
UNCERTAINTY:
● uncertainty refers to situations under which either the outcomes and/or their probabilities
of occurrences are unknown to the decision-maker
MARKET RESEARCH
➔ Gathering and analysing information about the consumption of goods and services.
➔ it helps to reduce the risk of failure.
➔ Products that are well researched are more likely to be successful
Identify and anticipate customer needs and wants:
- Businesses can clarify the specific needs and wants of consumers.
- In order to design products that are likely to sell
Quantify likely demand:
- how much of a product a business might expect to sell in a market. (quantitative)
- If demand is low, a business might cancel the launch of a product.
- This saves a lot of money.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller joiadejbakhsh. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $4.27. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
53068 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now