4.1

• Wants are unlimited which creates huge marketing opportunities for businesses
• Companies strive to increase their market share to gain a competitive advantage
• Marketing is anticipating, identifying and satisfying the needs and wants of the market, in a profitable manner
• Market size can be defined as the total number of individual customers or the total value of sales revenue in a certain market
• Market wants

  Things people would like to have, or have more of
• The greater the barriers of entry into the market


  The fewer the number of rivals will exist in the market
• Market share is the sales revenue that an organization accounts for within a given market or industry
• The firm with the largest market share is called the market leader
• Market orientation

  Focuses on meeting the specific demands (desires and needs) of customers and potential customers
• Methods of measuring market size

  • The potential number of customers in a market for a particular good or service
  • Sales volume
  • Sales Revenue
  • The number of competitors in the market
• Market needs

  Things people need in order to survive, necessities rather than human desires
• Product orientation

  Focuses on making products a business knows how to make well, rather than primarily concentrating on the needs and desires of potential customers
• Businesses are interested in knowing the market size of a good or service before launching a new product in the market
• TikTok's growth rate is almost double that of Snapchat and 2.5 times that of Instagram
• Ways businesses can increase their market share

  1. Promotion of their brands

  2. Product development, improvements, and innovation

  3. Motivation and training of the workforce to deliver better customer service

  4. Establishing property rights; trademarks, copyrights, and patents

  5. Using more efficient channels of distribution
• Market Growth

  An increase in the size of a market, usually measured by the rise in total sales revenue of the market or industry
• Market leadership benefits a business by

  • Shaping the industry (Price setting ability)
  • Attracting increased investors & higher quality employees
  • Increasing brand loyalty leading to customers paying higher prices
  • Achieving economies of scale resulting in higher profit margins
  • Encouraging retailers + distributors to hold more inventory
  • Creating a barrier to entry weakening competition
• How to Calculate Market Growth

  1. To calculate market growth, work out the percentage change in the market size in two different time periods

  2. Positive Market Growth = the market size is growing (e.g., electric cars market)

  3. Negative Market Growth = the market size has shrunk (e.g., sugary carbonated drinks market)
• TikTok more than doubled its worldwide user base between 2019 and 2021 (291.4 million to 655.9 million)
• Market share is the single most important measure used by marketers to judge the effectiveness of their marketing campaigns and marketing strategies
• This year, TikTok will see double-digit growth before dropping to single-digit increases going forward