Business Homework Market Segmentation
1. What is the difference between customer needs and a consumer?
Consumer needs are problems that customers aim to solve with the purchase of a good or service whiles a consumer is a person who purchases goods and services for personal use.
2. What is meant by a market?
A market is meant by a regular crowd of people for the purchase and sale of requirements, livestock, and other supplies.
3. Explain in your own words the difference between market size by volume and market size by value?
Market size by volume measures the amount of goods sold by quantity, e.g. bottles of cola. whiles market size by value measures the amount spent by customers on goods sold in a money.
4. If a firm has 20% of a market worth $300000 what is its level of sales?
20% x $ 300000 = $6000000
Sales tax x item cost = total sales
5. A market that has worth $2milion grows by 15%, what is the new total level of sales in the market?
($ 2000000 ÷ %15) x 100 = 13333333.3333
6. State two factors that influence the demand for a product?
Usually viewed as the most important factor that affects demand is price. Products have different sensitivity to changes in price. For example, demand for necessities such as bread, eggs and butter does not tend to change significantly when prices move up or down.
Another important factor that affects demand is when a product becomes unfashionable, demand can quickly fall away.
7. Using all the influences on demand, identify which two of them would most heavily affect sales of:
Does not tend to change significantly when prices move up or down.
b) Low cost...