MARKET SIZE
The size of a market can be calculated by the total sales of all businesses in the market.Market size is usually calculated in number of ways.
Value:This is the total amount spent by customers buying products.
For example;In 2014 the value of the global fast food market (burgers/sandwiches,Asian/Latin American food)was approximately US$ 495,000 million.It was expected to reach approximately US$ 645,000 million by 2020.
Volume:This is the physical quantity of products that are produced and soled.
For example;in 'Getting started',the market size for domestic air-travel in China is measured by number of passengers carried per year.This was 487,960 million in 2016.Some estimates of volume are based on the number or percentage of users, subscribers or viewers.This is often the case in market for services,such as the number of mobile phone users,the number of television viewers or the percentage of households with digital television.
Different markets are likely to differ in size.
For example;the sale of savoury snacks in 1 year is likely to be much smaller than the sales of footwear in the same year in country.
MARKET SHARE
Market share is the term to describe the proportion of a particular market that is held by a business, a product, a brand or a number of businesses or products.Market share is shown as a percentage.The market share of a business can be calculated as;
Sales of a business / Total sales in the market x 100%
Measurement of market share might be important because it might include a business that is a market leader.This influence other companies to follow leader or influence the leader to maintain its position.It might influence the strategy or objectives of a business.A business that has a small market share may set a target of increasing its share by 5% over a period of time.It may also be an indication of the success or failure of a business or its strategy.
The figure shows the global market share of smartphone suppliers of 2018.For example, Samsung is the market leader with a 42% share.It also shows that the first two producer which is Samsung and Apple have more than half of the entire market to themselves.BRANDS
Many businesses try to establish themselves in market by giving their products a brand name.Products are given brand names to distinguish them for other products in market.Branding is particularly important in mass markets where lots of products are competing for the market.Examples of common brand names including Google,BBC,Toyota,Nike,Samsung and Apple.Branding might be used to:- differentiate product from those of rivals
- create customer loyalty
- help product recognition
- develop an image
- charge a premium price when the brand becomes strong.
Brand name
Build a brand
Many businesses want to establish the name of their company or their products.They can do this by giving products brand names.For example Samsung is likely to identify by many people worldwide.Strong brands can generate huge returns for the business.So building a brand over a period of time is important for many-particularly those in highly competitive markets.If a business aims to build a brand it may exploit a unique selling point, invest heavily in TV advertising or use social media to achieve this specific marketing objective.
Finally a business is more likely to achieve its marketing objectives if they are SMART. This means that they should be;
Specific
Measurable
Achievable
Realistic
Time specific
DYNAMIC MARKETS
Most markets do not remain the same over time - they tend to be dynamic, which means they are likely to change.
They may grow, shrink,fragment,emerge or completely disappear.
For example:In majority of countries there is no longer a market for cassettes.Most people download audio materials such as music from internet.
Dynamic markets can have a huge impact on businesses.A failure to adapt in dynamic market can lead to collapse of a business.For example when digital photography emerged in the 1980s,Kodak camera company continued to rely on sales of film cameras.Eventually, the market for these types of cameras collapsed and Kodak went to liquidation.Those businesses that can adapt to changes in dynamic markets are more likely to survive in the long term.
ONLINE RETAILING
Online retailing or e-tailing is retailing of goods online.One of the biggest changes occur in the market of products has been the development of online retailing or e-tailing.This is a popular branch of e-commerce that has emerge along with development of internet.It involves shoppers ordering goods online and taking delivery at home.There are specialist e-tailers such as Amazon and Alibaba - retail 'giants' that sell a huge range of goods online.However,any retailers, both large and small, now have online services.Growth in online retailing is rapid and expected to continue into the future.Businesses may enjoy a number of benefits from offering online retail services.
- Retailers can market their goods to people who prefer to shop from home or who find it difficult to get to traditional shops.
- It is easier to gather personal information from customers so that they can be targeted with other product and offers in the future.
- Selling costs,such as sales staff , rent and other store overheads can be avoided.
- Online retailers can reach more customers.A single store in a high street can only attract a limited number of customers.
- An online retailer is open 24/7.There are not many stores that can match this level of service.
- online retailer provide greater flexibility. An online store can be updated instantly and as frequently as is necessary.
0 Comments :
Post a Comment