Chapter 6- Understanding Markets

Question 0

How to classify a market?

Answer 0

• Local Markets
• National Market
• Physical Markets
• Non-physical Markets

Question 1

What is a market?

Answer 1

A market is a place where sellers and buyers come together

Question 2

What is a Local market?

Answer 2

These serve a limited geographic area, close to where customers live

Question 3

What is a National Market?

Answer 3

These are many industrial and primary products that are sold on a national scale.

Question 4

What is the difference between Physical Market and Non-Physical Market?

Answer 4

In a physical market there is an actual place where buyers and sellers meet whilst non-physical are done over the phone or internet.

Question 5

What is demand?

Answer 5

Demand is the amount of a product or service that consumers are willing and able to buy at any given price over a period of time.

Question 6

Name the factors that influence demand

Answer 6

• Price
• Income
• Taste and Fashion
• Demographic Factors
• Substitute Products
• Complementary Products
• Seasonal Factors
• Marketing and Advertising

Question 7

What are Demographic factors?

Answer 7

These are population changes that can influence the number and types of products bought

Question 8

What is market segmentation?

Answer 8

Market segmentation is the classification of customers or potential customers into groups or sub-groups, each of which responds differently to different products or marketing approaches.

Question 9

Name the types of Market Segmentation

Answer 9

• Age
• Gender
• Social Class
• Geographic
• Lifestyle
• Frequency of purchase

Question 10

What does market segmentation enable?

Answer 10

• Increase market share, by adapting its marketing to customer interests
• Extend products into a new market/markets, by identifying market segment that may be interested in the product.

Question 11

What is market size?

Answer 11

Market size is the volume of sales of a product or the value of sales of a product.

Question 12

What is market growth?

Answer 12

Market Growth is the percentage change in sales over a period of time

Question 13

What is Market Share?

Answer 13

Market share is the percentage or proportion of the total sales of a product or service achieved by a firm or a specific brand of a product.

Question 14

How to calculate marek share?

Answer 14

Market share=

Sales of one product/brand/ Company divided by the Total sales in the Market x100