markets

Question 1

what is a market?

Answer 1

a meeting place between buyers and sellers where goods and services are exchanged, usually for money.

Question 2

what is competition?

Answer 2

competition refers to the rivalry between firms in the same industry who aim to increase their market share. this usually occurs within markets where multiple sellers have the potential to meet the demand of consumers.

Question 3

what is a global market?

Answer 3

global marketing is all about selling goods or services to overseas markets. different marketing strategies are implemented, based on the region or country the company is marketing to.

Question 4

advantages of a global market

Answer 4

-higher earnings
-spread risks
-increased economies of scale

Question 5

what is market share?

Answer 5

measures the sales of a firm relative to the market size.

Question 6

how do you calculate market share?

Answer 6

sales of a business / total sales in a market x 100

Question 7

importance of having a high market share:

Answer 7

-helps meet business objectives
-increased overall profitability
-able to benefit from economies of scale
-advantage over competitors
-investment into research

Question 8

what is mass marketing?

Answer 8

mass marketing involves a business aiming products at a whole market, rather than particular parts of them.

Question 9

advantages of mass marketing

Answer 9

-a company can produce large numbers of relatively standardized products
-untargeted marketing can be used
-low cost operations