Understanding markets

Understanding markets

HideShow resource information
  • Created by: Gabriella
  • Created on: 31-12-10 13:38


MARKET: Where BUYERS and SELLERS come together to TRANSACT with each other.

LOCAL market: Where customer is a short distance away from the supplier.

                         - Fresh, local farm supply. Sources there and then.

Advantages of this: Easier to develop relationships with consumer.

                               Better placed to understand local cultural issues and traditions.

                               Physically closer.

NATIONAL: Same product/service offered to customers across the country..Many locations..more profit.

PHYSICAL MARKET: Market stalls, auction houses, door to door selling.

ELECTRONIC: Cheap..Transactions online between buyer and seller. (+) Easier to access international markets, track social trends etc..

1 of 3


The amount of product or service customers are prepared to buy.

Can be measured in terms of value (of sales)...

Affected by...

TRENDS, SEASONAL DEMAND, PRICE (Elasticity of demand)aesthetics...Taste and fashion. Social and demographic..eg higher number of affluent, retired people. 

Competitors actions/ Technological advance..

*A product priced low may put people off if people associate low prices with poor quality. 

2 of 3


Classification of customers or potential customers into groups or sub groups, each of which responds differently to different products and marketing.


3 of 3


No comments have yet been made

Similar Business resources:

See all Business resources »See all Business Plans resources »