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MARKET DEFINITION
In marketing, the term market refers to the group of consumers or organizations that is interested in the product, has the resources to purchase the product, and is permitted by law and other regulations to acquire the product. The market definition begins with the total population and progressively narrows as shown in the following diagram.
DIAGRAM
https://i.servimg.com/u/f70/11/10/02/04/pic-010.gifIn marketing, the term market refers to the group of consumers or organizations that is interested in the product, has the resources to purchase the product, and is permitted by law and other regulations to acquire the product. The market definition begins with the total population and progressively narrows as shown in the following diagram.
DIAGRAM
Beginning with the total population,various terms are used to describe the market based on the level of narrowing:
Total population
Potential market - those in the total population who have interest in acquiring the product.
Availablemarket - those in the potentialmarket who have enough money to buy the product.Total population
Potential market - those in the total population who have interest in acquiring the product.
Qualified available market - those in the available market who legally are permitted to buy the product.
Target market - the segment of the qualified available market that the firm has decided to serve (the served market).
Penetrated market - those in the target market who have purchased the product. In the above listing, "product" refers to both physical products and services.The size of the market is not necessarily fixed. For example, the size of the available market for a product can be increased by decreasing the product's price, and the size of the qualified available market can be increased through changes in legislation that result in fewer restrictions on who can buy the product.Defining the market is the first step in analyzing it. Since the market is likely to be composed of consumers whose needs differ, market segmentation is useful in order to better understand those needs and to select the groups within the market that.
Market Definition: A market is any place where the sellers of a particular good or service can meet with the buyers of that goods and service where there is a potential for a transaction to take place. The buyers must have something they can offer in exchange for
there to be a potential transaction.
Supply Definition:
(1) The total amount of a good or service available for purchase; along with demand, one of the two key determinants of price.
(2) To fill up, or keep full; to furnish with what is wanted; to afford, or furnish with, a sufficiency; as, rivers are supplied by smaller streams; an aqueduct supplies an artificial lake; -- often followed by with before the thing furnished; as, to supply a furnace with fuel; to supply soldiers with ammunition.
Demand Definition:
(1) Demand is the want or desire to possess a good or service with the necessary goods, services, or financial instruments necessary to make a legal transaction for those goods or services.
(2) The amount of a particular economic good or service that a consumer or group of consumers will want to purchase at a given price.The demand curve is usually downward sloping, since consumers will want to buy more as price decreases. Demand for a good or service is determined by many different factors other than price, such as the price of substitute goods and complementary goods. In extreme cases, demand may be completely unrelated to price, or nearly infinite at a given price. Along with supply, demand is one of the two key determinants of the market price.
(3) Demand is the relationship between price and quantity demanded for a particular good and service in particular circumstances. For each price the demand relationship tells the quantity the buyers want to buy at that corresponding price. The quantity the buyers want to buy at a particular price is called the Quantity Demanded.
Supply and demand is an economic model describing effects on price and quantity in a market. It predicts that in a competitive market, price will function to equalize the quantity demanded by consumers, and the quantity supplied by producers, resulting in an economic equilibrium of price and quantity. The model incorporates other factors changing equilibrium as a shift of demand and/or supply.
DIAGRAM
https://i.servimg.com/u/f70/11/10/02/04/pic-i10.png
Supply scheduleTarget market - the segment of the qualified available market that the firm has decided to serve (the served market).
Penetrated market - those in the target market who have purchased the product. In the above listing, "product" refers to both physical products and services.The size of the market is not necessarily fixed. For example, the size of the available market for a product can be increased by decreasing the product's price, and the size of the qualified available market can be increased through changes in legislation that result in fewer restrictions on who can buy the product.Defining the market is the first step in analyzing it. Since the market is likely to be composed of consumers whose needs differ, market segmentation is useful in order to better understand those needs and to select the groups within the market that.
Market Definition: A market is any place where the sellers of a particular good or service can meet with the buyers of that goods and service where there is a potential for a transaction to take place. The buyers must have something they can offer in exchange for
there to be a potential transaction.
Supply Definition:
(1) The total amount of a good or service available for purchase; along with demand, one of the two key determinants of price.
(2) To fill up, or keep full; to furnish with what is wanted; to afford, or furnish with, a sufficiency; as, rivers are supplied by smaller streams; an aqueduct supplies an artificial lake; -- often followed by with before the thing furnished; as, to supply a furnace with fuel; to supply soldiers with ammunition.
Demand Definition:
(1) Demand is the want or desire to possess a good or service with the necessary goods, services, or financial instruments necessary to make a legal transaction for those goods or services.
(2) The amount of a particular economic good or service that a consumer or group of consumers will want to purchase at a given price.The demand curve is usually downward sloping, since consumers will want to buy more as price decreases. Demand for a good or service is determined by many different factors other than price, such as the price of substitute goods and complementary goods. In extreme cases, demand may be completely unrelated to price, or nearly infinite at a given price. Along with supply, demand is one of the two key determinants of the market price.
(3) Demand is the relationship between price and quantity demanded for a particular good and service in particular circumstances. For each price the demand relationship tells the quantity the buyers want to buy at that corresponding price. The quantity the buyers want to buy at a particular price is called the Quantity Demanded.
Supply and demand is an economic model describing effects on price and quantity in a market. It predicts that in a competitive market, price will function to equalize the quantity demanded by consumers, and the quantity supplied by producers, resulting in an economic equilibrium of price and quantity. The model incorporates other factors changing equilibrium as a shift of demand and/or supply.
DIAGRAM
https://i.servimg.com/u/f70/11/10/02/04/pic-i10.png
The supply schedule, graphically represented by the supply curve, is most often expressed by the relationship between market price and amount of goods produced. In short-run analysis, where some input variables are fixed, a positive slope can reflect the law of diminishing marginal returns, which states that beyond some level of output, additional units of output require larger amounts of input. In the long-run, where no input variables are fixed, a positively-sloped supply curve can reflect diseconomies of scale.For a given firm in a perfectly competitive industry, if it is more profitable to produce than to not produce, profit is maximized by producing just enough so that the producer's marginal cost is equal to the market price of the good.
DIAGRAM
https://i.servimg.com/u/f70/11/10/02/04/pic-ii10.png
The supply curve of labor is a perfect example of increasing net input(e.g., wages) above a certain pointresulting in decreased net output (hours worked).Occasionally, supply curves bendbackwards. A well known example is the backward bending supply curve of labour. Generally, as a worker's wage increases, he iswilling to work longer hours, since the higher wages increase the marginalutility of working, and the opportunitycost of not working. But when the wage reaches an extremely high amount,the employee may experience the law of diminishing marginal utility.The large amount of money he is making will make further money of little valueto him. Thus, he will work less and less as the wage increases, choosing instead to spend his time in leisure. The backwards-bending supply curve has also been observed in non-labor markets, including the market for oil: after the skyrocketing price of oil caused by the 1973 oil crisis, many oil-exporting countries decreased their production of oil.DIAGRAM
https://i.servimg.com/u/f70/11/10/02/04/pic-ii10.png
The supply curve for public utility production companies is unusual. A large portion of their total costs are in the form of fixed costs. The supply curve for these firms is often constant
more of the good. Just s the supply curves reflect marginal cost curves, demand curves can be de(shown as a horizontal line). Another postulated variant of a supply curve is that for child labor. Supply will increase as wages increase, but at a certain point a child's parents will pull the child from the child labor force due to cultural pressures and a desire to concentrate on education. The supply will not increase as the wage increases, up to a point where the wage is high enough to offset these concerns. For a normal demand curve, this can result in
two stable equilibrium points - a high wage and a low wage equilibrium point.
Demand schedule
The demand schedule, depicted graphically as the demand curve, represents the amount of goods that buyers are willing and able to purchase at various prices, assuming all other non-price factors remain the same. The demand curve is almost always represented as downwards-sloping, meaning that as price decreases, consumers will buy described as marginal utility curves.The main determinants of individual demand are: the price of the good, level of income, personal tastes, the population (number of people), the government policies, the price of substitute goods, and the price of complementary goods.The shape of the aggregate demand curve can be convex or concave, possibly depending on income distribution. As described above, the demand curve is generally downward sloping. There may be rare examples of goods that have upward sloping demand curves. Two different hypothetical types of goods withupward-sloping demand curves are a Giffen good(an inferior, but staple, good) and a Veblen good(a good made more fashionable by a higher price).
two stable equilibrium points - a high wage and a low wage equilibrium point.
Demand schedule
The demand schedule, depicted graphically as the demand curve, represents the amount of goods that buyers are willing and able to purchase at various prices, assuming all other non-price factors remain the same. The demand curve is almost always represented as downwards-sloping, meaning that as price decreases, consumers will buy described as marginal utility curves.The main determinants of individual demand are: the price of the good, level of income, personal tastes, the population (number of people), the government policies, the price of substitute goods, and the price of complementary goods.The shape of the aggregate demand curve can be convex or concave, possibly depending on income distribution. As described above, the demand curve is generally downward sloping. There may be rare examples of goods that have upward sloping demand curves. Two different hypothetical types of goods withupward-sloping demand curves are a Giffen good(an inferior, but staple, good) and a Veblen good(a good made more fashionable by a higher price).
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