Features of markets (location, size, growth, share and competitors) Flashcards
1
Q
What are the features of a market?
A
Market size
Market growth
Market share
Direct competitor
2
Q
Define Market Size
A
the total level of sales of all producers within
a market.
3
Q
Why is market size important to know?
A
Assess whether a market is worth entering or not
Firms can calculate their own market share
Growth or decline f the market can be identified
4
Q
Define market growth
A
the percentage change in the total size of a market (volume or value) over a period of time
5
Q
Define Market share
A
the percentage of sales in the total market
sold by one business. This is calculated by the following
formula:
6
Q
Formula for market share
A
firms sales in time period/ total market sales in time period x 100
