Learn: Markets

Welcome!Today we'll explore markets, a key concept in business studies. Understanding how markets work is essential for analysing business decisions and consumer behaviour. Let’s dive in!

What is a Market?A market is any place or platform where buyers and sellers come together to exchange goods, services, or resources. Markets can be physical locations like a high street or virtual spaces like online stores. They play a crucial role in determining prices and allocating resources efficiently.

Types of MarketsMarkets can be classified into different types based on their characteristics or the products exchanged. These include:Consumer markets: Where goods and services are sold directly to individuals.Business-to-business (B2B) markets: Where businesses sell to other businesses.Global markets: Where goods and services are traded internationally.

Demand and SupplyThe law of demand states that as the price of a product decreases, demand for it usually increases. The law of supply states that as the price of a product rises, sellers are more willing to supply it. Together, demand and supply determine market prices and quantities exchanged.

Market SegmentationMarket segmentation involves dividing a market into smaller groups of consumers with similar needs, preferences, or characteristics. Common ways to segment markets include demographic factors (e.g., age, gender), geographic location, behavioural traits, and psychographic factors.

Market ResearchMarket research is the process of gathering and analysing information about consumers, competitors, and market trends. It helps businesses make informed decisions, such as launching new products or entering a new market. Methods include surveys, focus groups, and analysing secondary data.

Review Time!Fantastic work! You've learned about markets, their types, demand and supply, segmentation, and market research. Let’s test your understanding with a few final questions.