business notes 1

definition: Market share or market penetration is the term used to describe the proportion of a particular market that is held by a business, a product, a brand or a number of businesses or products.

formula: Market share is shown as a percentage the market share of a business can be calculated as:

    sales of a business

------------------------------      x 100%

   total sales in the market

definition: Market often change in value (hopefully increase), market growth measures the change.

formula:

  difference

-------------   x 100

   orignial

definition: a very large market in which products with mass appeal are targeted.

Examples: Mcdonalds, coca cola.

definition: a smaller market, usually within a large market or industry.

examples: the shop lefties only, hybrid supercar

definition: primary research or field research invovles colllecting primary data. This information which did not exist before the research began. in other words it has to be collected by the researcher.

examples: survey, focus group

definition: secondary reseach or desk research involves the collection of secondary data. This is information which already exsits in some form. It can be internal data, from records within the business, or external data, from sources ouside the business.

examples: internet, old books

definition: A study of various market conditions that is plotted on a map to identify trends and corresponding variables between consumers and products. Market mapping can help companies locate problem areas and figure out the source of problems by examining related variables. 

definition: the extra features that may be offered by a business when selling a product, such as high quality customer service, which helps to exceed customer expectations.

defintion: The amount of a product that consumers are willing and able to buy/ purchase at any given price and at any given time.

Factors: Income, External economic environment (shocks), Changes in price of complimentary goods, Changes in price of substitute, Tastes, fashions and preferences, Changes in population: size, demographics, age distribution, Advertising and branding, Seasonality 

definition: The amount of a product which suppliers will offer to the market at any given price at any given time.

factors: TAX + tariffs, Cost of promotion, Weather, Changes in technology e.g. Genetically Modified (GM) crops, Transport, Government politics, Subsides, Changes in the number of firms in an industry,Changes in the cost production, External shocks wider economic environment

The difference between a shift and a movement:

A movement occurs when a change in quantity supplied is caused only by a change in price, and vice versa. A shift in a demand or supply curve occurs when a good's quantity demanded or suppliedchanges even though price remains the same.