Markets

What is a market?

A market is any place where buyers and sellers meet to trade products - it could be a high street shop or a web site.


What is the effect of the size of a market?


The size of a market influence the nature of the product and the target audience, as well as the amount a business sells.


Geographical markets:


Where the customer and firm can meet to exchange goods at a price, thus the market brings together buyers and sellers such as retail stores in high streets where the customer knows where to find the shop.


Non - Geographical markets:


Where products are sold without buyers and sellers meeting, modern forms of communication have replaced face-to-face communication in traditional markets such as purchasing items on the internet.


How can the size of a market be measured?


The size of a market can be measured in terms of the number of items sold (volume) or the amount of sales in terms of pounds spent (value)


What impact does a large market share have on the business and their competitors?


firms with large market shares have great power over suppliers and distributors, they are likely to be able to demand preferential treatment and better rates, this means that the competition will have to settle for second best and not get an equal opportunity.