AS LEVEL - BUSINESS UNIT 01 - MARKETING AND PEOPLE
LESSON 01 - THE MARKET - SHORT NOTES
Definition for markets - " Places where buyers and sellers meeting to exchange goods and
services."
Today it is possible to trade without buyers and sellers meeting. For example through telephone
calls, mail order , Internet etc.
Examples for markets include -
Consumer goods markets ( products like food , cosmetics etc. are sold)
Commodity markets ( where raw materials like oil, copper etc are traded)
Definition for marketing - " Marketing involves a range of activities that help a business sell it's
products ."
Marketing involves - Identifying the need and wants of customers, designing products that meet
these needs , telling customers about products , persuading customers to buy products etc.
According to the Chartered Institute of Marketing - "Marketing is the management process
responsible for identifying, anticipating and satisfying customer requirements profitably."
Mass markets - Where a business sells the same product to all consumers and markets them in
the same way.
Products sold in such a market are often fast moving goods like , crisps, cereals, soft drinks etc.
The number of customers in these markets are high. Businesses can produce high quantities at low cost
by exploiting economies of scale. They may be able to have high profits and sales due to the large
customer base and quantities produced.
However, mass market businesses will face alot of competition. The products will also be very similar in
the market. This will cause mass market businesses to spend heavily on marketing to differentiate their
products from rivals. ( Eg: Coca-Cola spent US$ 4000 million for it's advertising budget in 2016 )
Niche markets - A small market segment, untouched by larger businesses, with customers who
have specific needs.
These types of markets are the complete opposite of mass markets. The customer base of niche
market businesses are often small with specific needs. Therefore, the products in the market will
be different to eachother due to targeting very specific needs and wants. This brings forth the
advantage of less competition, unlike mass markets. It would be easier to focus on the needs of
consumers and the quality of the product in this market. Niche market businesses may also be
able to charge premium prices due to the lack of competition.
However, successfully exploiting a niche market may attract competition. If a larger business
enters that niche, it may be able to easily overrun the smaller businesses. Exploiting and
1
LESSON 01 - THE MARKET - SHORT NOTES
Definition for markets - " Places where buyers and sellers meeting to exchange goods and
services."
Today it is possible to trade without buyers and sellers meeting. For example through telephone
calls, mail order , Internet etc.
Examples for markets include -
Consumer goods markets ( products like food , cosmetics etc. are sold)
Commodity markets ( where raw materials like oil, copper etc are traded)
Definition for marketing - " Marketing involves a range of activities that help a business sell it's
products ."
Marketing involves - Identifying the need and wants of customers, designing products that meet
these needs , telling customers about products , persuading customers to buy products etc.
According to the Chartered Institute of Marketing - "Marketing is the management process
responsible for identifying, anticipating and satisfying customer requirements profitably."
Mass markets - Where a business sells the same product to all consumers and markets them in
the same way.
Products sold in such a market are often fast moving goods like , crisps, cereals, soft drinks etc.
The number of customers in these markets are high. Businesses can produce high quantities at low cost
by exploiting economies of scale. They may be able to have high profits and sales due to the large
customer base and quantities produced.
However, mass market businesses will face alot of competition. The products will also be very similar in
the market. This will cause mass market businesses to spend heavily on marketing to differentiate their
products from rivals. ( Eg: Coca-Cola spent US$ 4000 million for it's advertising budget in 2016 )
Niche markets - A small market segment, untouched by larger businesses, with customers who
have specific needs.
These types of markets are the complete opposite of mass markets. The customer base of niche
market businesses are often small with specific needs. Therefore, the products in the market will
be different to eachother due to targeting very specific needs and wants. This brings forth the
advantage of less competition, unlike mass markets. It would be easier to focus on the needs of
consumers and the quality of the product in this market. Niche market businesses may also be
able to charge premium prices due to the lack of competition.
However, successfully exploiting a niche market may attract competition. If a larger business
enters that niche, it may be able to easily overrun the smaller businesses. Exploiting and
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