Understanding Markets Flashcards
1
Q
Market size definition
A
The measurement of all sales by all sellers within a particular market
It can be measured by volume (number of goods sold) or by value (total amount spent by customers)
2
Q
Market growth definition
A
The percentage increase in the size of a market usually calculated over a year
3
Q
Market definition
A
Markets are the meeting point between a seller and a buyer
4
Q
Market growth formula
A
Increase in market size/Market size in earlier two years x 100
5
Q
Market share definition
A
The percentage of total sales within a particular market for which a business is responsible for
6
Q
Sales of one business formula
A
Market share of the business X Sales of the whole market
7
Q
How can market size be measured
A
- By volume: the number of goods sold
- By value: the total amount spent by customers on the volume sold
