4B : analysing and interpreting the market

Question 1

what is market analysis ?

Answer 1

the process of gathering information about anything that will affect conditions in the market

Question 2

what will businesses try to understand as they collect market data from different sources ?

Answer 2

• market data

*market share

• market trends

Question 3

what is market data ?

Answer 3

data that can be used to analyse and predict future trends to inform important decisions

Question 4

how can one measure market size ?

Answer 4

value : total amount spent by customers

volume : the quantity of products produced and sold

Question 5

define market share

Answer 5

the proportion of a market held by a business or brand

Question 6

how can you calculate market share ?

Answer 6

sales of a business
—————————- x 100%
total sales in market

Question 7

why is market important to companies

Answer 7

• its helps them meet their business objectives
• edge over competitors
• encourages investment into research

Question 8

what are markets trends

Answer 8

patterns in consumer choices that show changing product demand.

Question 9

what are the factors that influence weather a market gets bigger or smaller

Answer 9

• economic : rises in income.
  this may mean a growth in