what is the purpose of market share analysis discussed in our course? stats quizlet

by Joana Schinner 9 min read

What is the aim of market analysis?

What is the purpose of a market tracking study? A) to measure some variable of interest, such as market share or unit sales over time B) to determine if consumers switched brands from one time period to the next C) to determine the relationship between several variables

What is the market share?

The aim of market analysis is to identify the most important characteristics of a market and to determine the market structure at a certain point in time. Fact The market structure describes the structure of a certain market.

How important is market share in determining a company's profitability?

What is the overall purpose of a marketing plan? A. to define the target market and promotion strategies to be used on that market B. to determine whether or not a firm has enough capital to pursue its objectives C. to identify both existing and potential competitors of the firm D. to define the company's strengths and weaknesses

What is a comprehensive market analysis?

After completing your data analysis, the write-up should include a discussion of which of the following: A) Only the steps of the IMPACT model you consider important B) Only the steps of the IMPACT model your client will understand C) All steps of the IMPACT model D) All steps of the IMPACT model your client will understand

When determining the size of your market, should you use data that is accurate and up-to-date?

When determining the size of your market you should use data that is as accurate and up-to-date as possible. This part of the market analysis is about determining and evaluating the actual turnover or sales volume of a product or service in a specific market. Based on these figures you can make forecasts about the market development and derive the attractiveness of the market from this. The market development includes market growth and growth rates.

What is market analysis?

A market analysis provides information about industries, customers, competitors, and other market variables. You can also determine the relationship between supply and demand for a specific product or service. Based on these insights, you can make more informed decisions about possible marketing strategies.

Why do businesses need market analysis?

With the help of a market analysis, businesses can gain valuable information about a certain market. If you are setting up a business, want to investigate your current market, or simply look at new markets, a market analysis helps you to identeify and assess the opportunities and risks of a market.

How suitable is your offer for a certain market?

How suitable is your offer for a certain market? A market analysis will answer these important questions. Every market participant whether companies, founders, or private customers – can carry out a market analysis. In any case, it serves as a basis for decision-making. Information is collected and evaluated from suppliers and buyers in order to make purchase or sales decisions. Furthermore, you can evaluate your current market or view new markets.

What is market research?

Market research means the systematic investigation of a specific market, as such research provides information on the basis of which you can select a suitable marketing instrument. In contrast to market research, market analysis focuses on a specific market on a given date. The aim of market analysis is to identify the most important ...

How to carry out a market analysis?

Larger companies, on the other hand, often commission market research institutes to do it for them. A market analysis can be carried out using various methods of data collection. A distinction is made between primary and secondary research.

Why is information collected and evaluated?

In any case, it serves as a basis for decision-making. Information is collected and evaluated from suppliers and buyers in order to make purchase or sales decisions. Furthermore, you can evaluate your current market or view new markets.

What is a legal process in which one firm pays to use or distribute another firm's resources?

a legal process in which one firm pays to use or distribute another firm's resources, including products, trademarks, patents, intellectual property, or other proprietary knowledge. B. a contractual arrangement in which a fee is paid to have the right to open a business using the parent company's business name and to receive marketing ...

What chapter is MKT 301?

MKT 301: Chapter 2 " Strategic planning for a succ…

What is strategic planning?

A. Strategic planning is a one-time process completed when a firm outlines its objectives.

Can a company have a hybrid strategy?

A company cannot have a hybrid strategy.

Is managing total rewards an art or science?

Managing total rewards is an art and a science.

What is a blueprint that outlines the means for a company to deliver value to customers in a suitably

A blueprint that outlines the means for a company to deliver value to customers in a suitably profitable manner is known as its#N#a) business model.#N#b) strategic reaction.#N#c) emergent strategy.#N#d) proactive strategy.

What is the marker of good management?

a) The marker of good management is a solid strategy that focuses on customer value above all else.

What happens to a business as its market share increases?

Specifically, as market share increases, a business is likely to have a higher profit margin, a declining purchases-to-sales ratio, a decline in marketing costs as a percentage of sales, higher quality, and higher priced products.

How can we explain the decline in the ratio of purchases to sales as share goes up?

The decline in the purchases-to-sales ratio is quite a bit less (see Exhibit IV) if we control for the level of vertical integration. A low purchases-to-sales ratio goes hand in hand with a high level of vertical integration.

What is the average pretax loss for a business with a 10 percent market share?

Businesses with market shares under 10 % had average pretax losses of 0.16 %. The average ROI for businesses with under 10 % market share was about 9 %. Obviously, no individual business can have a negative profit-to-sales ratio and still earn a positive ROI.

Why is the rate of return so high in large share businesses?

Economies of scale: The most obvious rationale for the high rate of return enjoyed by large-share businesses is that they have achieved economies of scale in procurement, manufacturing, marketing, and other cost components. A business with a 40 % share of a given market is simply twice as big as one with 20 % of the same market, and it will attain, to a much greater degree, more efficient methods of operation within a particular type of technology.

Why is market power important?

These economists argue that if large-scale businesses earn higher profits than their smaller competitors, it is a result of their greater market power: their size permits them to bargain more effectively, “administer” prices, and, in the end, realize significantly higher prices for a particular product. 3

Why do market leaders have higher prices?

A principal reason for this may be that market leaders also tend to produce and sell significantly higher-quality products and services than those of their lower-share competitors.

When is it important to consider aggressive share building strategies?

On the other hand, when share is not so low as to dictate withdrawal, but is still not high enough to yield satisfactory returns , managers can consider aggressive share-building strategies. They should recognize, however, that (a) big increases in share are seldom achieved quickly; and (b) expanding share is almost always expensive in the short run.