Edexcel Business A Level Revision

Niche market - A smaller segment of a larger market where customers have specific needs and wants. Global market niches are subcultures in world society. These share common interests and can be identified as market segments on a global scale. Although a niche tagets a smaller market, on a global scale, this can be sizeable. This is particularly profitable when we recognise that these are likely to highly differentiated products rather than low costs. This means that the world's wealthiest consumers can be targeted, with the quality of the product being the most important factor. Other common features of a global niche market include; Requires high levels of customer service as demanding customers pay for quality not quantity Highly skilled employees with the expertise and, at times, the reputation required to create and sell the desired products Product innovation is essential in order to product the highly differentiated products that customers require A high level...

Competitive pricing (Loss leader) - Setting the price of a product or service based on what the competition is charging. This pricing method is used more often by businesses selling similar products, since service can vary from business to business, while the attributes of a product remain similar. Loss leader - is a product prominently displayed and advertised and priced below the normal price and even below cost to the seller. Business try to compete in various aspects of the marketing mix. The use of loss leaders is a method of sales promotion. A loss leader is a product priced below cost-price in order to attract consumers into a shop or online store. The purpose of making a product a loss leader is to encourage customers to make further purchases of profitable goods while they are in the shop. Aim : encourage people to buy complementary goods at full price. ADVANTAGE ▪ If a business undercuts it's competitors on price, new customers may be attracted and exi...