PDF Notes: 1 The market

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    What defines a mass market?

    Targets the general population with broad appeal.

    What is a niche market?

    Caters to specific consumer needs not met by mass markets.

    How do mass markets differ from niche markets?

    Mass markets aim for a wide audience; niche markets focus on specialized segments.

    What are the advantages of operating in a mass market?

    Economies of scale and high revenue potential.

    What are the disadvantages of mass markets?

    High competition and need for product differentiation.

    What characterizes a dynamic market?

    Subject to rapid changes in consumer preferences and competition.

    How does competition affect the market?

    Encourages efficiency and responsiveness to consumer needs.

    What is the difference between risk and uncertainty?

    Risk involves known probabilities; uncertainty involves unknown outcomes.

    What is market size?

    Total sales volume or value in a market.

    How is market share calculated?

    Sales of a business divided by total market sales, expressed as a percentage.

    What are the benefits of online retailing for small businesses?

    Lower operational costs and direct access to consumers.

    What challenges do small businesses face with online retailing?

    Higher distribution costs and reliance on website reliability.

    What is the implication of a dynamic market for businesses?

    Need to adapt quickly to changing consumer tastes.

    What does ethical sourcing involve?

    Ensuring safe working conditions and no child labor in supply chains.

    How does Primark's low pricing strategy affect its market position?

    Increases market share but may lower profit margins.