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The Market - Coggle Diagram
The Market
Mass and Niche Markets
MASS MARKETS - Some businesses will produce goods and services aimed at satisfying the needs of a whole market, rather than any specific section of the market.
NICHE MARKETS - other businesses select a segment of the market and sell specialised products specifically to suit the needs of customers in that segment.
They have smaller market share, changes in consumer preferences can be rapid and devastating to the market
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Huge markets in which large firms can operate successfully even though their market share may be low
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Dynamic Markets
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Continued growth in online retailing has varied between different markets with unpredictable growth of dynamism.
A major cause of change within markets is innovation, with competing firms continually trying to develop new products or services that offer features no rivals offer, loyalties can change dramatically. Innovation can cause other companies to try and adapt their offerings in order to keep peace with the rivals.
Many companies will try to come up with their own innovations in order to try to benifit from leading the change in the market.
Required changes are particularly difficult for a businesses, their operations, marketing, people and finance all has to be inconveniently altered. It may require new production methods, finding new suppliers new workers or distribution methods.
Risk/Uncertainty
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RISK - Business risk is the possibility a company will have lower than anticipated profits or experience a loss rather than taking a profit.
UNCERTAINTY - refers to situations in which businesses face risks that can’t be foreseen or measured.
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The market exists where buyers and sellers meet in order to exchange goods or service, markets are best thought of where a buyer and seller can interact.