Understanding markets Flashcards
What is Local markets?
Customers are only a short distance away.
What is National markets?
A geographically dispersed market where customers are spread over a large area.
What is Electronic market?
Does not have a physical presence, but exists in terms of a virtual presence via the internet. Many businesses have gone from ‘brick to click’.
What is Market segmentation?
The technique where the market is broken down into smaller sections with smaller characteristics.
Factors affecting demand?
Price
Competition
Incomes
Marketing
Advantages of virtual presence
All customers are equally near the business
The world is the market
24/7 opening
Start up and running costs are much lower
Disadvantages of virtual presence
Security issues
Lack of help and support
Lacks personal touch
Price transparacy
What is market share?
The proportion of a total market accounted for by one product or company.
What is market growth?
The measurement of the change in market size, usually expressed as a percentage of its original size.
What is Market size?
The measurement of the size of total sales for a whole market, either expressed in terms of value of sales, or the volume of sales.
Calculation for market growth?
How much has the value changed/what was the original value x 100
