Market Analysis Flashcards
What do businesses need to work out before they try sell products?
The market, how they are selling, target audience
What are 3 ways that a market can be classified?
Geography
Nature of the product
Development level
What does market analysis give firms information about?
Market size and growth
How do you calculate market growth?
New market size minus old market size divided by old market size X100
What is market share?
The percentage of sales that is mar by one business or brand
How do you calculate market share?
Sales divided by total market size X100
What does it mean when ur market share goes down?
That competitors are gaining an advantage over you
What can sales growth used to do?
Analyse market trends
How do you calculate sales growth?
Sales this year minus sales last year divided by sales last year X100
What does it mean if sales growth is positive?
Then the company is gaining sales
What does it mean if sales growth is negative??
Then the company is losing sales
What does market mapping compare?
2 features of products or brands
What does a market map show?
Extremes for 2 measures that are important to customers
How are market maps laid out?
As a matrix and the products or brands are positioned according to where they are judged to lie between each pair of extremes
How can market maps help a business?
To spot a gap in the market
