- Markets are the basis (základ) of all modern business.
- Market = place where goods and services may be bought and sold
- Most modern markets are highly specialized.
- There are three main kinds of markets.
- Commodity markets
Deal with primary sector raw materials, for example, metals (kovy) and foodstuff, such as wheat.
- Industrial or organizational markets
Deal in a vast range (obrovský sortiment) of goods and services which other business needs in order to function efficiently.
- Financial markets
Are one of the fastes-growing in the modern world.
- Consumer markets
Are the most important markets in the whole economy.
Different markets segments
Take clothes for example. There are different types of clothes (men’s, women’s or chlidren’s) The most important are: Age (group of the same age usually have similar (podobné) wants), Gender (Sex), Size etc.
- Niche markets
Sometimes, a business will spot a gap in the market which no other firms has seen. It may be a small group of people who share special kind of products (sports car) This market is often small, but they can be highly profitable.
- Market research
What consumers want or may want in the future investigate
-> Market sizes and trends (potential size of the market)
-> Market segments (actual and potential customers)
-> Customers preferences (what customers want from the product)
-> Competition (who are the main competitors )
Methods of market research
Primary or field reseach
obtains original information which did not exist before (interviews – face to face,telephone,questionnaires, observations)
Desk or secondary research
data or information that already exist in pc files
- Marketing mix
market research helps a business to discover what consumers want. Marketing helps it to satisfy those wants. There are four factors, known as the 4 Ps.
Promotion- or how customers will hear about the product
Product – or the kind of goods or services provided
Price – or what the consumers can be charged
Place – or how the products will be distributed
(packaging – extent that some experts consider it to be the fifth P)
- Branded (značkový) goods.
The trade name can be used only by the only firm that has registered it: loyalty (věrnost) of consumers – comes from constat advertising+ satisfaction of consumers. Producers can chargé higher prices, easier to sell globally.
- own-brand product
a brand firm buys from other producers and sells under its own name that is more succesful that the real producer’s one.
- Product life cycles
- Introduction – new products, costs are high, small competition
- Growth – product becomes popular, cost fall down, it stars to make a profit (výnos)
- maturity (zralost) – sales increasing (zvyšující), great competitions with rivals
- saturation (nasycenost) – sales and profit start to fall
- decline – sales go down, product is unprofitable
- There are three types of economy
Planned economy – everything is decided by the state.
Free market economy – everything is owned and decided by individuals
Mixed economy – there is a private sector run by individuals and small public sector run by the state