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A level Edexcel Business Exam FALL 2024/2025 verified questions and answers graded A+
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A level Edexcel Business Exam FALL 2024/2025 verified questions and answers graded A+
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A level Edexcel Business Exam FALL 2024/2025A level Edexcel Business Exam FALL 2024/2025
verified questions and answers graded A+
What are niche markets?
Where a business targets a smaller segment of a larger market, where customers
have specific needs and wants
What are mass markets?
Where a business sells into the largest part of the market, where there are many
similar products offered by competitors
State the features of a mass market
Customers form the majority of the market
Customers needs and wants are more general and less specific
What is economies of scale?
Economies of scale mean that a business has lower unit costs because of its large
size.
,A level Edexcel Business Exam FALL 2024/2025
They can buy raw materials cheaply in bulk and also spread the high cost of
marketing campaigns and overheads across larger scales
What are the features of a niche market?
The niche market appeals to a much smaller segment.
The niche market will be smaller than the mass market.
The niche market provides products and/or services which focus on a specialist
want or need.
What are the benefits of mass markets?
Having more customers.
Benefiting from economies of scale (due to higher output levels).
Can build a strong market presence.
What are the disadvantages of mass markets?
Higher levels of competition.
Lower profit margins
What are the benefits of niche markets?
,A level Edexcel Business Exam FALL 2024/2025
Less competition.
Specific market.
Can develop specific expertise.
Higher profit margins.
Customer loyalty.
What are the disadvantages of niche markets?
Lack of economies of scale
Risk of over-dependence on a single product or market
Vulnerable to market changes
Likely to attract competition if successful
Examples of businesses in mass market and niche markets
In the fast-food industry there are a few dominant players who appeal to the mass
market - McDonalds, Burger King, Subway.
There is a smaller niche market for healthy fast food. This is addressed by
businesses such as Leon.
What is a brand?
A brand is a good or service that has something which is unique & recognisable.
, A level Edexcel Business Exam FALL 2024/2025
This could be from the way that the product is designed or a different feature.
A brand is more likely to become strong if it is easily recognised and distinctive.
Benefits of strong brands
Strong brands usually benefit from higher customer loyalty. Customers support the
brand and will continue to go and buy their products repeatedly.
A brand can create higher profitability by itself. Some consumers will pay higher
prices for items with a certain brand logo on them (e.g. Nike or Apple).
How do retailers try to boost sales?
Retailers are developing their "own-label' brands.
These products undercut big brands by being cheaper but are more expensive than
their basic products.
What is a dynamic market?
A market that is constantly changing.
How is online retail a dynamic market?
Online retail is a dynamic market as it continues to change and develop in terms of
how customers can purchase goods and services.
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