A market - buyers and sellers meet to exchange goods
and services. Marketing is a management process to
1.1 - THE MARKET
identify customer requirements
Marketing involves: Mass market Niche market
➔ Identifying and satisfying customer
requirements ➔ Large market targets ➔ Smaller market targets
➔ Understanding threats from competition products with wide specific products at a
➔ Charging the right prices appeal particular group.
➔ Persuading customers to purchase
products
Benefits - large sales volume and can Benefits - can charge higher prices as
Market size - value or volume of products sold over a period of use economies of scale less competition. Loyal customer base
time. Can also be measured by total amount spent by customers.
Risks - very competitive and requires Risks - risky in a small market.
Market share - proportion of sales in a market from one business.
large investment in marketing Vulnerable if competitor enters market
➔ Sales of business/ total sales in a market x100 or market changes
Large market size and small shares Small market size and large shares
Use of market share - to compare figures to previous
years, in other countries and competitors to plan.
Dynamic market - market that is changing due to customer preferences,
Branding - important when lots of competition innovation, ways of shopping, legislation changes and competitors entering or
● Differentiate products from rivals leaving the market.
● Create customer loyalty
● Charge higher prices
● Develop an image
, Online retailing
advantages disadvantages
E commerce - conducting business transactions online
Adapting to change
Easily accessible for anyone anywhere and More competition and customers can compare
➔ Flexibility - multi skilled staff, machinery
open all the time prices easily
and operations.
➔ Market research
➔ Investment in product development, training Easy to control - stock can be withdrawn and Some customers like to see a product before
and assets added easily they buy and prefer customer service access.
➔ Efficiency to save money and better
customer service - repeat purchases. Business costs lower as no need for physical Security maintenance expensive and
shop or hire of staff. Allows charge of lower vulnerable to hacking and technological issues
Attracting customers prices and more profit. - low overheads
● Lowering prices
● Unique, good quality products. Easy to get personal customer info and use Some customers don’t want to put bank
● Promotions and customer service to target promotions details online.
● Easily to use and accessible for customers
Direct competition - businesses sell similar products that
appeal to the same group of customers ➔ New, smaller firms struggle in competitive markets as they haven’t got
the budget to stand out and win market share - need investment to
Indirect competition - when businesses sell different raise funds. - often operate as limited companies
products and competing for the same group of customers.
Risk - probabilities of outcomes often known. Businesses make decisions to try and
Competition affect the marketing mix and the decisions a minimise risks and try to control them.
business makes. E,g, need to make good quality, distinctive Uncertainty - unexpected events. Difficult to predict when and where as well as
products, used promotions and advertisement, good outcome. Usually external events e.g. competitor actions.
branding, affordable prices and good accessibility
and services. Marketing is a management process to
1.1 - THE MARKET
identify customer requirements
Marketing involves: Mass market Niche market
➔ Identifying and satisfying customer
requirements ➔ Large market targets ➔ Smaller market targets
➔ Understanding threats from competition products with wide specific products at a
➔ Charging the right prices appeal particular group.
➔ Persuading customers to purchase
products
Benefits - large sales volume and can Benefits - can charge higher prices as
Market size - value or volume of products sold over a period of use economies of scale less competition. Loyal customer base
time. Can also be measured by total amount spent by customers.
Risks - very competitive and requires Risks - risky in a small market.
Market share - proportion of sales in a market from one business.
large investment in marketing Vulnerable if competitor enters market
➔ Sales of business/ total sales in a market x100 or market changes
Large market size and small shares Small market size and large shares
Use of market share - to compare figures to previous
years, in other countries and competitors to plan.
Dynamic market - market that is changing due to customer preferences,
Branding - important when lots of competition innovation, ways of shopping, legislation changes and competitors entering or
● Differentiate products from rivals leaving the market.
● Create customer loyalty
● Charge higher prices
● Develop an image
, Online retailing
advantages disadvantages
E commerce - conducting business transactions online
Adapting to change
Easily accessible for anyone anywhere and More competition and customers can compare
➔ Flexibility - multi skilled staff, machinery
open all the time prices easily
and operations.
➔ Market research
➔ Investment in product development, training Easy to control - stock can be withdrawn and Some customers like to see a product before
and assets added easily they buy and prefer customer service access.
➔ Efficiency to save money and better
customer service - repeat purchases. Business costs lower as no need for physical Security maintenance expensive and
shop or hire of staff. Allows charge of lower vulnerable to hacking and technological issues
Attracting customers prices and more profit. - low overheads
● Lowering prices
● Unique, good quality products. Easy to get personal customer info and use Some customers don’t want to put bank
● Promotions and customer service to target promotions details online.
● Easily to use and accessible for customers
Direct competition - businesses sell similar products that
appeal to the same group of customers ➔ New, smaller firms struggle in competitive markets as they haven’t got
the budget to stand out and win market share - need investment to
Indirect competition - when businesses sell different raise funds. - often operate as limited companies
products and competing for the same group of customers.
Risk - probabilities of outcomes often known. Businesses make decisions to try and
Competition affect the marketing mix and the decisions a minimise risks and try to control them.
business makes. E,g, need to make good quality, distinctive Uncertainty - unexpected events. Difficult to predict when and where as well as
products, used promotions and advertisement, good outcome. Usually external events e.g. competitor actions.
branding, affordable prices and good accessibility
