1.6 understanding markets (part 2) - moodle

Define market segmentation.

List the three main categories for market segmentation and their meaning.

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Market Segments

Where the market is broken down into smaller sections with similar characteristics.

Understanding Markets

By the end of this lesson you should be able to:

1. Understand and use numerical techniques to analyse data.

2. Use numerical techniques to analyse market conditions.

Learning Objectives

Market share – the proportion of a total market accounted for by one product or company.

Market size – the measurement of the size of a whole market. Expressed as value of sales (currency) or volume of sales (units).

Proportions of a total market share

Coca- Cola40%

Pepsi29%

Fanta17%

Sprite14%

Soft Drink Market Share

Market shareTotal in a market x 100

What is the market share for each of the following Businesses?

Market Share

Market shareTotal in a market x 100

Company Sales Market Share

Topshop 400,000 41%

Oasis 250,000 26%

Warehouse 200,000 21%

New Look 125,000 13%

Total 975,000 100%

Suppose a business had sales of last year of £300,000 and this year sales where £425,000. How do we calculate?

Changes in market share

How much has the value changed?New value of sales – old value of salesOriginal value x 100

(£425,000 - £300,000) £125,000 £300,000 x 100 = 41.67%

Market growth – measurement of a the change in market size, usually expressed as a percentage.

Complete questions 1 and 2 - P40.

Prepare to share your answers.

Hendersons

By the end of this lesson you should be able to:

1. Understand and use numerical techniques to analyse data.

2. Use numerical techniques to analyse market conditions.

Re-cap Learning Objectives

Write down and define four keywords from this this lesson.

Finally