Edexcel A-level Business Unit
1&2 Complete Revision
Notes(WBS11/WBS12)
1.What is the aim of marketing? - correct answer-To help identify, anticipate and satisfy
consumer needs and wants profitability.
2.What is a mass market? - correct answer-A very large market with high sales volume in
which products with mass appeal are targeted.
3.What is a niche market? - correct answer-A small, specialized market for a particular
product or service.
4.What are 3 characteristics of mass markets? - correct answer-Less unique products
Low average costs due to economies of scale
Lower cost for consumers and therefore higher sales volumes
Lower profit margins
5.What are 3 characteristics of niche markets? - correct answer-More specialised & unique
products
,Higher average costs due to small scale production
Higher prices make products less affordable and lead to less sales volume
Higher prices which lead to higher profit margins
6.What is a dynamic market? - correct answer-A market that is subject to rapid or
continuous changes.
7.What are 3 advantages for firms & consumers of online retailing? - correct answer-
Provides business access to more consumers, including internationally
Enables longer trading hours as business is open 24/7
Cheaper to run as fixed and variable costs are lowered
Businesses can collect data by tracking consumer behaviour
Consumers can shop at a time that suits them
Consumers can receive personalised offers they are more likely to benefit from
, 8.What are 3 disadvantages for firms & consumers of online retailing? - correct answer-
May be high costs for website development, maintenance and promotion
Online retailing is dominated by well-known large businesses
Lack of personal contact with customers
Consumers may find it difficult to get desired level of customer service
Customers may find it difficult to return unwanted products
9.What are 3 ways a market can change? - correct answer-Changing consumer tastes and
preferences
Changing demographics (aging population who have different wants and needs)
Amount of competition (international trade means larger market siznes but also more
competition between an increasing number of firms)
Changing legislation (laws strengthening environmental standards often create new
markets)
10.What is process innovation? - correct answer-The adaptation or improvement of
existing processes, e.g. just in time stock control.
1&2 Complete Revision
Notes(WBS11/WBS12)
1.What is the aim of marketing? - correct answer-To help identify, anticipate and satisfy
consumer needs and wants profitability.
2.What is a mass market? - correct answer-A very large market with high sales volume in
which products with mass appeal are targeted.
3.What is a niche market? - correct answer-A small, specialized market for a particular
product or service.
4.What are 3 characteristics of mass markets? - correct answer-Less unique products
Low average costs due to economies of scale
Lower cost for consumers and therefore higher sales volumes
Lower profit margins
5.What are 3 characteristics of niche markets? - correct answer-More specialised & unique
products
,Higher average costs due to small scale production
Higher prices make products less affordable and lead to less sales volume
Higher prices which lead to higher profit margins
6.What is a dynamic market? - correct answer-A market that is subject to rapid or
continuous changes.
7.What are 3 advantages for firms & consumers of online retailing? - correct answer-
Provides business access to more consumers, including internationally
Enables longer trading hours as business is open 24/7
Cheaper to run as fixed and variable costs are lowered
Businesses can collect data by tracking consumer behaviour
Consumers can shop at a time that suits them
Consumers can receive personalised offers they are more likely to benefit from
, 8.What are 3 disadvantages for firms & consumers of online retailing? - correct answer-
May be high costs for website development, maintenance and promotion
Online retailing is dominated by well-known large businesses
Lack of personal contact with customers
Consumers may find it difficult to get desired level of customer service
Customers may find it difficult to return unwanted products
9.What are 3 ways a market can change? - correct answer-Changing consumer tastes and
preferences
Changing demographics (aging population who have different wants and needs)
Amount of competition (international trade means larger market siznes but also more
competition between an increasing number of firms)
Changing legislation (laws strengthening environmental standards often create new
markets)
10.What is process innovation? - correct answer-The adaptation or improvement of
existing processes, e.g. just in time stock control.
