Cambridge IGCSE Business (0264) syllabus reference: 3.1.1 to 3.1.4
Success criteria - by the end of this topic you can:
- explain the role of marketing
- explain why spending patterns change and markets become more competitive
- calculate market share
- compare mass and niche markets and explain market segmentation
The role of marketing: identifying customer needs, satisfying them, maintaining customer loyalty, building customer relationships and anticipating changes in needs.
Why markets change
- Spending patterns change because of changes in income, tastes and fashion, technology, population (age structure) and the economy.
- Markets become more competitive because of globalisation, ecommerce, lower trade barriers and new businesses entering.
- Responses: develop new products, improve quality or service, cut costs and prices, increase promotion, target new segments.
Key terms
Market share - the percentage of total sales in a market made by one business.
Worked example: Market share
Market share = (sales revenue of the business / total sales revenue of the market) x 100 A cereal maker sells $12m in a market worth $80m: 12 / 80 x 100 = 15%.