Interpreting Market Data Flashcards
All 11 cards in this deck
What is the formula for market share?
Market share (%) = (sales of the business ÷ total market sales) × 100
In pricing, what is demand?
How much of a product customers want to buy, and can afford to buy, at a particular price.
What is the basic relationship between price and demand?
As prices rise, demand is likely to fall (and as prices fall, demand is likely to rise).
What is market share?
The proportion of sales in a market made by one business.
True or false? A business whose sales are rising must be gaining market share.
False. The whole market may be growing faster, so its share can still fall.
Give one benefit to a business of using market data.
Any one of: it shows trends in the market; it can reveal gaps or unfulfilled demand.
How can market data show the effect of a promotion?
By comparing sales or demand before and after the promotion ran.
What is a trend in market data?
The general direction in which the figures move over a period of time.
What is market data?
Information that helps a business make marketing decisions, e.g. on changes in demand, market share or the effect of promotions.
Give two possible reasons for a fall in demand for a product.
Any two of: its price is higher than rivals'; it is out of date and customers have switched; customers now buy a different way, e.g. online.
Why must a business keep checking its target market?
Target markets change over time, e.g. more older people now use smartphones, so marketing aimed at the old group may miss customers.