1.1 – Meetin Customer Needss
1.1.1 – The Market
Market A place where buyers and sellers come together to exchange
goods and services
Mass market When a frm targets the whole of a market rather than a
particular segment
Niche market When a frm targets a small subsection or previously
unexploited gap in a larger market
Market size The total value or volume of sales in the market
Market share The proportion of total market sales that a particular frm has
Brand A feature of a business or product that is recognised by
customers and distinguishes it from competitors
Dynamic markets The environment is dynamic and therefore markets are always
changing
Online retailing Online retailing, e-tailing or e-commerce involve the buying
and selling of goods or services online
Innovation A new idea or invention which is launched onto the market
normally with a view to fnancial gain
Market growth The percentage increase in the size of the market i.e. by how
much is the market growing in terms of value or volume
Competition The number of competitors that a business faces within the
market that it operates
Risk The potential for loss by an entrepreneur when undertaking a
venture to atain rewards
Uncertainty The inability to predict exactly what will happen in the future
Market size Number of units sold x price
Market share Sales of one frm/total market sales x 10000
Market growth Change in size of market/original size x 10000
Markets can take a variety of forms e.g. local/national/global, physical/electronic, etc.
Mass Marketingg Niche Marketingg
Large potential market means large USP/competitive edge
potential proft Can charge premium prices
Economies of scale Promotion more efcient/efective
Products available through a range Potentially frst mover advantage
of markets Greater focus on customer needs
Lots of competition Low revenue levels
Lower pricing High unit costs (no economies of
High marketing costs scale)
High levels of investment required Fall in demand causes a large
Risk of diseconomies of scale impact
Prices atract competitors
Branding involves the creation of an identity for a business and as a trademark can’t be
copied. Branding can add value allowing businesses to charge more and leads to brand
1.1.1 – The Market
Market A place where buyers and sellers come together to exchange
goods and services
Mass market When a frm targets the whole of a market rather than a
particular segment
Niche market When a frm targets a small subsection or previously
unexploited gap in a larger market
Market size The total value or volume of sales in the market
Market share The proportion of total market sales that a particular frm has
Brand A feature of a business or product that is recognised by
customers and distinguishes it from competitors
Dynamic markets The environment is dynamic and therefore markets are always
changing
Online retailing Online retailing, e-tailing or e-commerce involve the buying
and selling of goods or services online
Innovation A new idea or invention which is launched onto the market
normally with a view to fnancial gain
Market growth The percentage increase in the size of the market i.e. by how
much is the market growing in terms of value or volume
Competition The number of competitors that a business faces within the
market that it operates
Risk The potential for loss by an entrepreneur when undertaking a
venture to atain rewards
Uncertainty The inability to predict exactly what will happen in the future
Market size Number of units sold x price
Market share Sales of one frm/total market sales x 10000
Market growth Change in size of market/original size x 10000
Markets can take a variety of forms e.g. local/national/global, physical/electronic, etc.
Mass Marketingg Niche Marketingg
Large potential market means large USP/competitive edge
potential proft Can charge premium prices
Economies of scale Promotion more efcient/efective
Products available through a range Potentially frst mover advantage
of markets Greater focus on customer needs
Lots of competition Low revenue levels
Lower pricing High unit costs (no economies of
High marketing costs scale)
High levels of investment required Fall in demand causes a large
Risk of diseconomies of scale impact
Prices atract competitors
Branding involves the creation of an identity for a business and as a trademark can’t be
copied. Branding can add value allowing businesses to charge more and leads to brand
