Understanding Markets

Question 0

Geographical

Answer 0

• local businesses

- national markets (nationwide building society)

Question 1

Nature/types of markets

Answer 1

• geographical classification
• physical and non-physical classification
• can be classified through market segmentation.

Question 2

Physical and non-physical markets

Answer 2

Physical market: where buyers and sellers meet and goods and services are exchanges.
Non-physical/electronic market: online marketplaces.

Question 3

Demand

Answer 3

The amount of a product or service that consumers are willing and able to purchase at any given period of time.

Question 4

Factors of demand

Answer 4

• income and wealth
• price
• marketing and advertising
• demographic factors

Question 5

Benefits of market segmentation

Answer 5

• Increases market share.
• develops new products.
• identifies ways of marketing a product.

Question 6

Disadvantages of market segmentation

Answer 6

• difficult to identify most important segments.
• keeping up to date with changing views of market.
• ignoring market segments can be regretful.

Question 7

Factors influencing market growth

Answer 7

Economic growth
Nature of product
Taste and fashion
Social changes