1.1.1 The market

Question 1

Competition

Answer 1

The rivalry among sellers trying to achieve goals such as increasing profits, market share, and sales volume

Question 2

Competitive market

Answer 2

When there are many rivals selling similar products

Question 3

Dynamic market

Answer 3

A market that is subject to rapid/continuous change.

Question 4

Innovation

Answer 4

The creation, development and implementation of a new product, process or service.

Question 5

market growth

Answer 5

An increase in demand/sales for a particular product or service

Question 6

Mass market

Answer 6

The largest part of the market, where there are many similar products
+More customers
+Potential for EOS
-More competition
-Need for competitive pricing

Question 7

Niche market

Answer 7

It is a smaller segment of a larger market where consumers have specific needs and wants.
+Less competition
+Can charge higher prices
-less customers
-No EOS

Question 8

Sale volume

Answer 8

The quantity of a good or service sold within a period of time. Calculation Sales revenue/selling price

Question 9

Impact of competition

Answer 9

-Drive innovation
-Increases customer choices
-Battle for competitive advantage

Question 10

Factors effecting demand

Answer 10

-Price of complementary good
-Income levels
-Seasonality
-Trends