The Market

• What are dynamic markets characterized by?


  Markets are always changing.
• What factors contribute to the dynamism of markets?

  Social trends, changes in technology, competitive environment, and consumer tastes.
• What happens to a business that fails to keep up with trends in the market?


  It will soon lose competitiveness.
• What are examples of industries disrupted by new technologies?


  • Film industry disrupted by streaming services (e.g., Netflix)
  • Taxi services disrupted by mobile apps (e.g., Uber)
  • Camera market disrupted by sophisticated smartphones (e.g., iPhone)
• What is online retailing?


  The process of buying and selling goods and services over the internet.
• What are some advantages of online retailing for consumers?


  It offers greater convenience and breaks down geographical barriers.
• How does online retailing benefit businesses?


  It provides opportunities to cover overhead costs and access a wider market.
• What is product orientation in business?


  A business focuses on what it is best at producing and selling.
• What is market orientation in business?


  A business finds out what the demand is and then meets these needs.
• What are businesses that combine product and market orientation called?

  Asset-led businesses.
• What is a market?


  Anywhere that buyers and sellers meet to trade.
• What does market share represent?


  The number of sales of one company compared to the total number in the market.
• How is market share calculated?

  Market Share % = Sales value £ ÷ market size £
• What is market size?


  The total volume/value of sales within the market.
• What does market growth indicate?


  The change within the market, expressed as a percentage or amount.
• What are the benefits and issues of online retailing?


  Benefits:

  • Open 24/7
  • Automatic orders
  • Wide or global reach
  • Customer base through social media
  • Reduced rent costs

  
  

  Issues:

  • Refund issues may deter customers
  • Concerns about sharing bank details online
  • Potential technical problems