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Understanding Markets<br />
What is it?<br />A place where buyers and sellers meet<br />Traditionally physical although have developed with technology...
Demand<br />Understanding the demand of their products is very important for a business.<br />Some key factors influence t...
Demand - 2<br />Prices of other goods<br />Substitutes – e.g. Chocolate market<br />Complements – e.g. Shampoo and Conditi...
Market Segmentation<br />This is the classification of customers into groups or sub-groups. <br />Two key types of segment...
What type of Segmentation<br />Depends upon business and product<br />E.g. Clothes, age and gender are key<br />In the USA...
Social network profile - UK<br />
Where do you think Twitter fits?<br />
Benefits and Drawbacks of Segmentation<br />
Market Mapping<br />Uses segmentation to look at the features that distinguish different products or firms:<br />E.g. Peop...
Market size, growth and share<br />Measured by Volume or Value<br />Growing markets can lead to increased sales but potent...
Market Share<br />Sales of one product or brand or company<br />x100<br />Market Share =<br />Total sales of market<br />x...
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Understanding markets

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Transcript of "Understanding markets"

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