#2.1 : Principles, Tools, and Techniques in Creating a Business Flashcards
Meaning of market in economics
It refers to the structure where the firm belongs – e.g., pure competition, monopolistic competition.
Meaning of market in other disciplines
It refers to the type of customers and their numbers as well.
In identifying what kind of goods or services to present to the market, it is
important to know and understand your _________.
customers
One way to know and understand your customers is and its meaning
Market Segmentation - categorizing your customers
2 types of Market Segmentation
Demographics and Geographic Segment
It describes your customers according to their gender, age, and income.
Demographics
It classifies the consumers according to the place where they belong – e.g. urban or rural areas, western, eastern, northern, or southern parts of a country or region.
Geographic Segment
Why is it best to categorize your customers?
To meet the customers’ requirements
even those who look for specific components of a good.
3 more factors to consider in creating a business
suppliers, competitors, and substitutes
Materials used in production by a producer, a seller, or a manufacturer are
sourced from ________.
Suppliers
Why should we identify where to get the source of raw materials?
Because they are vital in the production process.
This type of competition is true for a purely competitive market where products are homogenous in nature like agricultural products.
Competitors have the same qualities and
characteristics.
They are the rivals in the business. It is always important to put them into considerations.
Competitors
This type of competitor can be seen in a monopolistic competition where in the producers try to make their products unique or distinguishable among other competitors.
Competitive advantage (lamang)
This occurs when competitors conspire as one having the same objectives. As what the old saying goes, “If you can’t beat them, join them.”.
Colluding
