9609 · 3.1.3
Markets flashcards
Revision flashcards for Cambridge 9609 Markets (syllabus 3.1.3). Flip, recall, then mark a real past-paper question.
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What is a market?
Buyers and sellers of a particular product or service — not necessarily a physical place.
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How is market size measured?
By the total value (£) or volume (units) of sales in a market over a specific period.
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What does market growth indicate?
The rate of increase in market size. A high growth rate often attracts investment and new competitors.
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Distinguish between a niche and a mass market.
A niche market is a small, specialised segment of a larger market, whereas a mass market is a large, broad market with general needs.
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What is a key advantage of an online market?
Lower barriers to entry, potential for global reach, and the ability to collect detailed customer data.
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What is a significant challenge of operating in an online market?
Intense price competition due to high transparency, managing logistics and delivery costs, and building customer trust and handling returns.
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What is an oligopoly?
A market structure dominated by a few large firms, often leading to heavy branding and non-price competition.
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How does the PESTLE analysis (Topic 6.1) link to markets?
External factors like Technology (rise of e-commerce) and Economic changes (recession or boom) directly impact market size, growth, and the nature of competition.
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What is 'market size'?
The total level of sales of all producers within a market. It can be measured in two ways: by volume (the number of units sold) or by value (the total amount of money spent by customers).
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Define 'market growth'.
The percentage change in the total size of a market (volume or value) over a period of time. A positive figure indicates an expanding market, while a negative figure indicates a shrinking market.
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What is 'market share'?
The percentage of sales in a total market that is held by one business. It is calculated as: (Firm's Sales ÷ Total Market Sales) x 100.
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What is a 'niche market'?
A smaller, specialised segment of a larger market where customers have specific needs and characteristics. Businesses targeting a niche can often charge premium prices.
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What is an 'industrial market'?
A market where businesses sell goods and services to other businesses (B2B), rather than directly to consumers. The products are used for production, resale, or business operations.