GCSE-ready- Home
- Lessons
- GCSE & IGCSE Business
- The market
The market
🎬 The doodle video for this lesson is coming soon. Subscribe on YouTube to see it first.
Understanding the market helps a business win and keep customers, and decide whether to aim at everyone or a small group.
Customers and orientation
Businesses aim to satisfy customer needs, build relationships and keep customer loyalty.
Market orientation: research what customers want first, then make it.
Product orientation: focus on making a good product first, then find customers. This suits highly technical or innovative products, but risks making things nobody wants.
Market orientation: research what customers want first, then make it.
Product orientation: focus on making a good product first, then find customers. This suits highly technical or innovative products, but risks making things nobody wants.
Niche and mass markets
Mass market: selling to a very large market, such as soft drinks. High sales, but lots of competition and low prices.
Niche market: selling to a small, specialised segment, such as gluten-free bakery goods. Less competition and higher prices, but limited sales and risky if tastes change.
Market share (%) = business's sales ÷ total market sales × 100
Niche market: selling to a small, specialised segment, such as gluten-free bakery goods. Less competition and higher prices, but limited sales and risky if tastes change.
Market share (%) = business's sales ÷ total market sales × 100
Responding to change
Markets change: customer needs, spending patterns and competition.
Businesses respond with new products, new prices, new promotion or new places to sell.
Segmentation (by location, demographics, lifestyle, income and age) helps target the right customers.
Businesses respond with new products, new prices, new promotion or new places to sell.
Segmentation (by location, demographics, lifestyle, income and age) helps target the right customers.
A company's sales are $3 million. Total market sales are $25 million. What is its market share?
- 3 ÷ 25 × 100
Answer: 12%
Market orientation starts with customer research; product orientation starts with the product. Mass markets are large and competitive; niche markets are small and specialised. Market share = own sales ÷ market sales × 100.
Check you have got it
Answer 7 quick questions with instant marking. If you get one wrong, GCSE-ready shows you why and gives you another go. It is free, and you do not need an account.