Section outline

  • Markets & Business Philosophies

    Learning Intentions
    • Investigate different approaches or philosophies used in business 
    • Explore different types of markets
    • Explore the process of marketing in a business

    Success Criteria
    • We can define the following terms: market; marketing; marketing oriented business; product oriented business; sales oriented business.
    • We can describe the differences between each of these types of businesses.
    • We are able to recognise the circumstances in which each philosophy may be used by a business

    Markets

    A market is a place where buyers and sellers can meet to facilitate the exchange or transaction of goods and services. Markets can be physical like a retail outlet, or virtual like an e-retailer. 

    The term market may also refer to the whole group of buyers for a particular good or service. For example the soft drink market refers to sales of soft drinks. It would include sales of all brands of soft drinks over a certain period.

    Market Size 

    Market size can be measured by two factors:

    • Number of sellers and Buyers
    • Total sales annually

    Businesses that operate in markets are usually in competition with other companies. Market size is often measure by looking at the total sales ($) in the market each year. Entrepreneurs and businesses often use market size to estimate potential earnings or profits in the market for new products or services. This also helps decision-makers to decide whether they should invest in the business.

    Market Share

    Market share is the percentage of a market accounted for by a specific business.

    Market Share Definition, Importance & Example | Marketing Dictionary | MBA Skool-Study.Learn.Share.

    Market share is a measure of the consumers' preference for a product over other similar products. It helps businesses to see how competitive they are in the market. It could help them investigate ways that might help them to increase their market share. 

    Business Philosophies
    This week we will look at a few different business approaches utilised by different businesses.
    Watch each of the following video's and then answer the following questions about each approach.
    Remember to answer each of these questions in your own words:

    1. Describe a the business approach or philosophy.
    2. What is the problem or any challenges with using this type of philosophy?
    3. In what circumstances would using this this approach or philosophy be most successful?

    Production Orientation: 

    Sales Orientation: 

    Market Orientation: