Market conditions

Question 1

What are market conditions?

what is it influenced by?

Answer 1

are characteristics of the market that a business operates in.

1. the number of competitors in the market
2. the number of consumers in the market ( size of the market )
3. the type of consumers in a market ( age, gender and income)
4. the amount of growth in market
5. other external conditions ( economic, political etc)

Question 2

what is market conditions impact on costs and demand?

Answer 2

impact on cost :
INCREASES COSTS
- more competition in market means more need for promotion and innovation more need for business to get themselves out their and this will increase marketing costs.

impact on demand:
- increase on demand
- growing markets meaning increasing level of demands + higher consumer confidence

decrease on demand
- increasing number of competitors may reduce market share.