These documents are a summary of Theme 1 , 2 and 3 for Business A-Level Edexcel
Runs through aspects of the course and has advantages and disadvantages for everything which can
Also has real life examples if confusing topic
Niche Markets:
o Small market segments
o Typically specialist firms or skills or unique products
Advantages
o Can help widen a business's product portfolio
o Little to no competition
o Less price sensitive so prices can be put high
Disadvantages
o Typically small volume of sales
o Costs can be high
Mass Markets:
o Offering products or services which apply to a large market or to the masses
o Firms must be able to produce on a large scale
Advantages
o Can benefit from economies of scale
o Potential for a high volume of sales
o Lower unit costs then for niche markets
Disadvantages
o Requires a USP to get an advantage over competitors
o Hard to differentiate
Market size:
o The total value or volume of sales in the market
o Number of units sold x price
o Sales of firm / % of market share it has x 100 = 100 size of overall market
Market share:
o Proportion of total units sold in the market sold by your business
o Sales of firm / market size of whole market x 100
Dynamic markets:
Change because:
o Online retailing
o Changing social trends
o Innovation and market growth
o Adapting to change
o Impact of competition upon the market
Market Research
Product orientation
o Involves making products/services that suit the operational strengths of the business and
then using different techniques from competitive prices to sales forces to convince
customers to buy
Advantages
o Better market research
o Reduced risk
o Benefits from psychological selling
Disadvantages
o Can't exploit market orientation benefits
, o Might not fit market wants
Market orientation
o Produce goods and services to the markets wants or needs
Advantages
o Can increase customer satisfaction and loyalty
Disadvantages
o Market wants or needs can change very quickly
Primary Research
Types:
o Questionnaires
o Focus groups
o Experiments
o Observations
Advantages
o Helps identify customer needs
o Reduces risk
o Improves decision making
o Helps measure performance
Disadvantages
o Cost
o Time consuming
o Limited sample size
o Potential for Bias
Secondary Research
Types
o Newspapers
o Online researches
Advantages
o Cheaper
o Less time consuming
Disadvantages
o May be outdated
o Might not be super useful
o Available to all
Market Positioning
Adding value to products/services
Transforming raw materials into finished products that consumers value and are willing to
pay for a higher price
o Added value = selling price - cost of inputs
Ways of adding value
o Brand name or logo
o Better quality
o Convenience
o Customization
o Customer service
o Sustainability
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