1.1.1 The market
Revising
Understand
Market
buyers and sellers exchange goods/services
physical location or online
Mass market Niche market
generic product tailored and specialist product
similar in function or form small segment of larger market
large market higher shares = higher profit
margins
differentiation achieved through
logo/name differentiation achieved through
✓ wide pool of customers product
✓ high production levels = eos ✓ tailor = higher prices charged
✓ mass media advertising ✓ USP = higher profit margins
✗ small pool of customers
✗ no USP
✗ dynamic market would be fatal
✗ small market share
Market size: total sales of all biz in market
estimate
value - total amount spent by customers buying products
volume - physical quantity of products which are produced and sold
Market share: proportion of particular market that is held by a biz
indicate market leader
1.1.1 The market 1
Revising
Understand
Market
buyers and sellers exchange goods/services
physical location or online
Mass market Niche market
generic product tailored and specialist product
similar in function or form small segment of larger market
large market higher shares = higher profit
margins
differentiation achieved through
logo/name differentiation achieved through
✓ wide pool of customers product
✓ high production levels = eos ✓ tailor = higher prices charged
✓ mass media advertising ✓ USP = higher profit margins
✗ small pool of customers
✗ no USP
✗ dynamic market would be fatal
✗ small market share
Market size: total sales of all biz in market
estimate
value - total amount spent by customers buying products
volume - physical quantity of products which are produced and sold
Market share: proportion of particular market that is held by a biz
indicate market leader
1.1.1 The market 1
