3b: types of market

Question 1

what is a market ?

Answer 1

a market is anywhere where buyers and sellers come together to transact with each other

Question 2

what is a product ?

Answer 2

Anything that satisfies customers needs and wants

Question 3

What is a “good” ?

Answer 3

Something tangible e.g. phone , car

Question 4

what is a service ?

Answer 4

usually intangible and something people do for you e.g. room service ,tech support

Question 5

what are consumer goods ?

Answer 5

goods to satisfy consumers needs and wants and are made for households e.g. baked beans , t-shirts.

Question 6

what are producer goods ?

Answer 6

goods used in the production process and can be used to make more producer and consumer goods e.g. van, conveyor belt

Question 7

what is a local market ?

Answer 7

markets where customers are a short distance away . it is also easier for these markets to build relationships with local customers , however they are usually small

Question 8

what are national markets ?

Answer 8

where customers are spread throughout the country or over a large area e.g. tesco , McDonalds and subway

Question 9

what are Global markets ?

Answer 9

markets with customers all over the world e.g. oil from Iran

Question 10

what are some opportunities for Global markets ?

Answer 10

economics of scale : reduce in unit cost

Question 11

what are some difficulties of Global markets ?

Answer 11

social differences :language, religion

economic differences : living standards , exchange rate

Different currency: $ , £