The Market

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Niche vs. Mass Markets

Markets can be split into mass segments and niche segments. Their characteristics are different.

Mass market

The mass market tries to make products and/or services for all consumers.
The mass market will be larger and the types of products will be more generalised.

Niche market

The niche market appeals to a much smaller segment.
The niche market will be smaller than the mass market.
The niche market provides products and/or services which focus on a specialist want or need.

Examples

In the fast-food industry there are a few dominant players who appeal to the mass market - McDonalds, Burger King, Subway.
There is a smaller niche market for healthy fast food. This is addressed by businesses such as Leon.

Benefits and disadvantages of mass markets

Benefits:
- Having more customers.
- Benefitting from economies of scale (due to higher output levels).
- Can build a strong market presence.
Disadvantages
- Higher levels of competition.
- Lower profit margins

Benefits and disadvantages of niche markets

Benefits:
- Less competition.
- Specific market.
- Can develop specific expertise.
- Higher profit margins.
- Customer loyalty.
Disadvantages:
- No economies of scale.
- Vulnerability because they have an undiverse product portfolio.

Brands

Brands can differentiate one business from a competitor. differentiate competitors. Strong brands can develop strong customer loyalty for a business, leading to larger profits.

What is a brand?

A brand is a good or service that has something which is unique & recognisable. This could be from the way that the product is designed or a different feature.
A brand is more likely to become strong if it is easily recognised and distinctive.

Strong brands

Strong brands usually benefit from higher customer loyalty. Customers support the brand and will continue to go and buy their products repeatedly.
A brand can create higher profitability by itself. Some consumers will pay higher prices for items with a certain brand logo on them (e.g. Nike or Apple).

Retailers

Retailers try and stock well-known brands on their shelves.
However, to try and boost profits, retailers are developing their "own-label' brands.
- These products undercut big brands by being cheaper but are more expensive than their basic products.

1Exploring Business

2Marketing Campaigns

2.1Marketing

2.1.1Setting Marketing Objectives

2.1.2Customer Needs

2.1.3The Market

2.1.4Competition & The Market

2.1.5Consumer Behaviour

2.1.6Market Research

2.1.7Forms of Market Research

2.1.8Market Segmentation

2.1.9Cultural & Social Factors in Marketing

2.1.10Promotional Decisions 3

2.1.11Pricing Strategies

2.2Marketing Mix

2.2.1Marketing Mix

2.2.2Product Life Cycle

2.2.3Pricing Decisions & Price Skimming

2.2.4Pricing Decisions & Price Penetration

2.2.5Promotional Decisions

2.2.6Promotional Decisions 2

2.2.7Promotional Decisions 3

2.2.8Market Mapping

3Business Finance

3.1Sources of Finance

3.1.1Internal Finance

3.1.2External Finance

3.1.3External Finance 2

3.1.4Sources of Business Finance

3.2Financial Planning

3.2.1Revenue

3.2.2Costs

3.2.3Cash & Cash Flow

3.2.4Cash & Cash Flow 2

3.2.5Break-Even Analysis

3.2.6Profits

3.3Financial Statements

3.3.1Balance Sheets

3.3.2Income Statements

3.3.3Liquidity

4International Business

4.1Globalisation

4.1.1Growing Economies

4.1.2Specialisation & Trade

4.2International Business

4.2.1Internationalisation

4.2.2International Trade

4.2.3MNCS

4.2.4Conditions that Prompt Trade

4.2.5Assessment of a Country

4.3International Economic Environment

4.3.1Globalisation

4.3.2Factors Contributing to Globalisation

4.3.3Protectionism

4.3.4The EU & the WTO

4.3.5Trading Blocs

4.4Factors Affecting International Business

4.4.1Global Competitiveness

4.4.2Ethics of Global Business

4.4.3Controlling MNCs

4.4.4Cultural & Social Factors in Marketing

5Principles of Management

5.1Management & Leadership

5.1.1Managers

5.1.2Management Theories

5.1.3Managing Organisational Culture

5.1.4Management Style

5.2Theories of Motivation

5.2.1Motivating & Engaging Employees

5.2.2Taylor's Theory

5.2.3Mayo's Theory

5.2.4Maslow's Theory

5.2.5Herzberg's Theory

5.3Managing Change

5.3.1Change

5.3.2Key Factors in Change

5.3.3Scenario Planning

5.3.4Managing Change

5.3.5Managing Strategic Implementation

6Business Decision Making

6.1Business Principles & Practices

6.1.1Influences in External Environments

6.1.2Product Decisions

6.1.3Competitive Environment

6.1.4Corporate Strategy

6.1.5Quantitative Sales Forecasting

6.1.6Legislation

6.2Quality Management

6.2.1Importance of Quality

6.2.2Measuring Quality

6.2.3Total Quality Management

6.2.4Evaluating TQM

6.3Human Resources

6.3.1Contracts

6.3.2Recruitment

6.3.3Training a Workforce

6.4Documents & Business Decisions

6.4.1Sales Forecasts

6.4.2Managing Strategic Implementation

6.4.3Problems with Strategy

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