Understanding Markets Flashcards
What do local markets do?
Serve a limited geographic area( close to where the customers live)
What is a market?
A place where buyers and sellers come together.
What are national markets?
Where many industrial and primary products are sold on a global scale.
What are physical markets?
Where there is an actual place where buyers and sellers meet(e.g. A shop)
What is an electronic market?
Telephone sales and internet are used to bring buyers and sellers together.
What is demand?
The amount of product or service that customers are willing/able to buy at any given price over a period of time.
What are the factors which influence demand?
Price Income/wealth Tastes/fashion Substitute products Complementary products Seasonal factors Demographic factors Marketing/advertising
What is market segmentation?
Classification of customers/potential customers into groups or sub-groups, each which respond differently to different products/marketing approaches.
What are the types of market segmentation?
Age gender Social class Geographic Lifestyle Usage/frequency of purchase
What does market segmentation allow a business to do?
Increase market share
Know which new products to develop
Extend products into new markets
Improve marketing
What are the problems with market segmentation?
Difficulty identifying the most important segments for a product
Knowing how to reach the chosen segment
Recognising changes in the relevant segments
Ignoring the needs of customers not in the chosen segments
What is market size?
He volume of sales of a product or value of sales of a product.
What is market growth?
The percentage change in sales
What is market share?
The percentage or proportion of the total sales of a product or service achieved by a firm or specific brand
What is the equation for market share?
SALES OF ONE PRODUCT OR BRAND OR COMPANY/TOTAL SALES IN MARKET X100
