Chap 5 Flashcards
what is a market?
place where buyers and sellers can meet to facilitate
the exchange or transaction of goods and services.
what is marketing
is the activity, institutions, and processes for creating,
communicating, delivering, and exchanging offerings that have value.
what is digital marketing?
is the marketing of products or services using
digital technologies, mainly on the internet but also including mobile phones, display advertising, and any other digital media.
what ais digital marketing channels?
are systems on the internet that can
create, accelerate and transmit product value from producer to the terminal consumer by digital networks
what is a physical market
is a set up where buyers can physically meet their
sellers and purchase the desired merchandise from them in exchange of money.
what is a perfectly competitive market ?
is a market structure characterized by a complete absence of rivalry among the individual firms.
what are the assumptions of a perfectly competitive market ?
Large number of sellers and buyers
Price taker (Price determined by demand and supply)
Homogeneous product
Perfect mobility of factors of production
Free entry and exit
Perfect knowledge about market conditions
No government interference
what is a monopoly market?
its a market where a single firm is the only producer of a product for which there are no close substitutes/
what are the main characteristics of monopoly market ?
Single seller
No close substitutes
Price maker
Blocked entry
what are the sources of monopoly ?
Legal restriction
Control over key raw materials
Efficiency (economies of scale)
Patent rights
what are the characteristics of oligopoly market
Few dominant firms
Interdependence
Entry barrier
Products may be homogenous or differentiated
what is pure oligopoly ?
If the product is homogeneous,
what is differentiated oligopoly
If the product is differentiated
