Summary
Summary Markets and market structures
- Institution
- WJEC
Summary notes for markets and market structures.
[Show more]
Connected book
Book Title:
Author(s):
- Edition:
- ISBN:
- Edition:
Content preview
MarketsMarket – where buyers and sellers meet to exchanges goods for money.
Types of markets:
Local/global
Mass/niche
Trade/consumer
Product/service
Seasonal – sales care concentrated in a particular part of the year. E.g., Christmas
trees are sold mostly in December.
Market orientation – business bases its marketing mix on its perception what the market
wants to satisfy needs and wants of consumers. E.g., Apple
Product orientation – business bases its marketing mix on a business’s internal strengths by
emphasising on the product aspect.
Asset led – marketing decisions are based on the needs of customers and strengths of the
business. E.g., Cadburys and Nike
Mass marketing – business offers almost the same product to all consumers and promotes
them in a similar way.
Mass market benefits:
A lot of customers
Opportunity for large profits
More sales
Benefit from economies of scale – (high sales volumes makes it easier to afford large
advertising and marketing campaigns)
Less risky
Mass market drawbacks:
Low prices, (competitive prices)
Increased competition.
Need more machinery and large factories to mass produce – Need a large
investment.
Difficult to appeal to individual customers.
Expensive to promote.
Niche marketing – aiming a product at a particular market/audience.
Niche market benefits:
, Charge high prices
Less competition
Tailored to meet customers’ needs
Won’t be left with outdated stock
Niche market drawbacks:
Fewer potential customers mean there are fewer sales.
If too successful, niche market may be targeted by larger competitors which would
mean you would make less profits as prices will become competitive.
Risk from supply.
Market size can be estimated in two ways.
Value – total amount spent by customers buying goods
Volume – physical quantity of products which are sold
Market growth = (change in size) / (original market) X 100 = ____%
Market share = (sales of a business) / (total sale in market) X 100 = ____%
Market segmentation – is the process of dividing a market into smaller groups (segments)
who have similar needs, interests and characteristics.
Markets are segmented by:
Demographics – age, gender, income, occupation, nationality, education, family size
Psychographic – lifestyle, personality traits, interests, values, opinions
Geographics – needs, preferences, interests based on location, regions of the country,
(rural, urban suburban, city) climate, area, language
Behavioural – purchase consumption, lifestyle, usage intent, occasion
Why is market segmentation important?
Allows businesses to learn about their consumers so that they can vary its products
to suit customer’s needs.
Can gain a better understanding of customers’ needs and wants, therefore can
tailor campaigns to customer segments most likely to purchase products. (Target
audience)
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 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 AdamSidat. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for £4.49. 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 revision notes and other study material for 14 years now