2. What is it? A place where buyers and sellers meet Traditionally physical although have developed with technology. Can be local, national or global Sometimes global products may need to be changed for local markets
3. Demand Understanding the demand of their products is very important for a business. Some key factors influence the demand for most products and services: Price – Supply and Demand Can you think of any products where price doesn’t affect demand? Income and Wealth of Customers Tastes and Fashions
4. Demand - 2 Prices of other goods Substitutes – e.g. Chocolate market Complements – e.g. Shampoo and Conditioner Demographic factors Marketing and Advertising – Massive impact Competitors Actions Seasonal factors Government Action e.g. Taxes on cigarettes and banning smoking in public places
5. Market Segmentation This is the classification of customers into groups or sub-groups. Two key types of segmentation are by demographic and geographic Demographic – age, gender, social class (occupation), residential (type of housing) Geographical – north/south, urban/rural and also geographical features and terrain.
6. What type of Segmentation Depends upon business and product E.g. Clothes, age and gender are key In the USA facebook is designed to appeal to richer people from ‘higher’ social class. Does it apply to UK too?
10. Market Mapping Uses segmentation to look at the features that distinguish different products or firms: E.g. People buy cars because the are: Suitable for family use Cheap to buy and/or run Environmentally friendly Capable of fast speeds Safe and secure
11. Market size, growth and share Measured by Volume or Value Growing markets can lead to increased sales but potentially tougher competition Declining markets may lead to less sales A number of factors can influence growth: Economic Growth The nature of the product Changes in taste Social changes Fashion
12. Market Share Sales of one product or brand or company x100 Market Share = Total sales of market x100
