Understanding Markets

Question 0

Demand

Answer 0

The willingness and ability to buy a good/service

Question 1

Market

Answer 1

Any situation which brings together buyers and sellers to conduct transactions

Question 2

Quantity demanded

Answer 2

The number of products (good or service) that customers are willing and able to buy at any given price

Question 3

Market segment

Answer 3

A small section of the market containing a group of customer with similar characteristics

Question 4

Market segmentation

Answer 4

The technique of breaking down the market into smaller groups of customers with specific characteristics, determining their wants and needs and deciding how these can be targeted

Question 5

Market size

Answer 5

Total sales in a market (volume or value)

Question 6

Market growth

Answer 6

The percentage change in market size from one year to the next

Question 7

Market share

Answer 7

The proportion of the total market sales (volume or value) made by one firm

Question 8

Market mapping

Answer 8

A visual way to represent segments of the market according to 2 variables

Question 9

Market niche/ Gap in the market

Answer 9

A customer need which is not currently being met by other businesses