Dynamic markets

Created by: LivStorm
Created on: 15-06-21 15:42

Dynamic market definition

A market that is constantly changing and reflects consumer preference, product value and use of new technology.

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What happens if a business does not adapt

All businesses must adapt to changing nature of their markets. If they do not they are likely to get left behind and lose competitiveness. Ultimately falling sales will cause businesses to exit the market.

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How markets can change

Behaviour of markets
As legislation changes
Size of markets
Nature of markets
New markets
Markets change due to demand
New markets get changed as well
Decisions made by buyers and sellers alter markets
New technology

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How technology is affected by dynamic markets

Most high-tech products have rapidly changing markets due to technology constantly developing. More demand from that side of the market.

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Effect of a change in fashions of a dynamic market

A change in fashions will lead to rising demand for some products and falling demand for others.

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How sellers respond to a dynamic market

Sellers respond to changing needs of buyers by improving existing products and services or introducing new ones. Respond to competitor's changing in order to remain competitive. Businesses must adapt to survive in the current market and remain competitive

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Dynamic markets examples

Seasonal market - (skiing, beach wear, Halloween or Christmas)
Markets adjust
Products go out of fashion

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Other cards in this set

Card 2

Front

What happens if a business does not adapt

Back

Card 3

Front

How markets can change

Back

Card 4

Front

How technology is affected by dynamic markets

Back

Card 5

Front

Effect of a change in fashions of a dynamic market

Back

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Dynamic markets