A-Level Business Edexcel.
Unit 1.1 – 2 – The market.
Mass market – is the attempt to create products or services that have universal appeal.
o So rather than targeting a specific type of customer, mass marketing aims the
product at the whole market.
o Products are less unique as they are aimed at broad market segments.
o Lower average costs due to large scale production (reduced prices if you buy in bulk).
Niche markets – is when products are aimed at a very small segment of a much larger
market.
Products are more specialised and unique as they are aimed at a smaller market.
High average costs due to small scale production and don’t benefit from economies
of scale.
Higher prices make products less affordable and lead to lower sales volume.
Market size – The size of a market can be measured through sales volume which is the
number of products sold.
• Sales revenue = price x quantity sold
Market share – is the proportion of total sales of a product/service compared to the market
as a whole.
𝑺𝒂𝒍𝒆𝒔 𝒐𝒇 𝒂 𝒃𝒖𝒔𝒊𝒏𝒆𝒔𝒔
• 𝑴𝒂𝒓𝒌𝒆𝒕 𝑺𝒉𝒂𝒓𝒆 = 𝑻𝒐𝒕𝒂𝒍 𝒔𝒂𝒍𝒆𝒔 𝒊𝒏 𝒕𝒉𝒆 𝒎𝒂𝒓𝒌𝒆𝒕 𝑿 𝟏𝟎𝟎
Brand – is a name, image or logo which helps one product/service stand out from its
competitors.
▪ Branding is one of the key ways businesses achieve product differentiation; which is
distinguishing a product from competitors’ product in the market.
▪ Businesses operating in mass markets use branding to stand out from the
competition.
▪ Businesses operating in niche markets use branding to communicate their offering to
a small, well-defined group of consumers.
▪ Strong brands are more likely able to charge higher prices for their products rather
than weaker brands this is because the perceived better quality of a strong brand is
better than the weaker brands.
Dynamic markets – is a market that is subject to rapid or continuous change.
o Many markets are becoming more competitive and those businesses which do not
adapt are less likely to survive in the long run. For example, the mobile phone market
as a result of changing technology.
The 4 areas to consider when examining dynamic markets:
1. Online retailing – involves selling products via the internet.
Advantages of Online Retailing:
o Allows businesses to sell to more consumers, possibly internationally.
o Enables longer trading hours as the business is open 24/7.
Disadvantages of Online Retailing:
Unit 1.1 – 2 – The market.
Mass market – is the attempt to create products or services that have universal appeal.
o So rather than targeting a specific type of customer, mass marketing aims the
product at the whole market.
o Products are less unique as they are aimed at broad market segments.
o Lower average costs due to large scale production (reduced prices if you buy in bulk).
Niche markets – is when products are aimed at a very small segment of a much larger
market.
Products are more specialised and unique as they are aimed at a smaller market.
High average costs due to small scale production and don’t benefit from economies
of scale.
Higher prices make products less affordable and lead to lower sales volume.
Market size – The size of a market can be measured through sales volume which is the
number of products sold.
• Sales revenue = price x quantity sold
Market share – is the proportion of total sales of a product/service compared to the market
as a whole.
𝑺𝒂𝒍𝒆𝒔 𝒐𝒇 𝒂 𝒃𝒖𝒔𝒊𝒏𝒆𝒔𝒔
• 𝑴𝒂𝒓𝒌𝒆𝒕 𝑺𝒉𝒂𝒓𝒆 = 𝑻𝒐𝒕𝒂𝒍 𝒔𝒂𝒍𝒆𝒔 𝒊𝒏 𝒕𝒉𝒆 𝒎𝒂𝒓𝒌𝒆𝒕 𝑿 𝟏𝟎𝟎
Brand – is a name, image or logo which helps one product/service stand out from its
competitors.
▪ Branding is one of the key ways businesses achieve product differentiation; which is
distinguishing a product from competitors’ product in the market.
▪ Businesses operating in mass markets use branding to stand out from the
competition.
▪ Businesses operating in niche markets use branding to communicate their offering to
a small, well-defined group of consumers.
▪ Strong brands are more likely able to charge higher prices for their products rather
than weaker brands this is because the perceived better quality of a strong brand is
better than the weaker brands.
Dynamic markets – is a market that is subject to rapid or continuous change.
o Many markets are becoming more competitive and those businesses which do not
adapt are less likely to survive in the long run. For example, the mobile phone market
as a result of changing technology.
The 4 areas to consider when examining dynamic markets:
1. Online retailing – involves selling products via the internet.
Advantages of Online Retailing:
o Allows businesses to sell to more consumers, possibly internationally.
o Enables longer trading hours as the business is open 24/7.
Disadvantages of Online Retailing:
