Examinng Business Markets
Market Structure
-> Market structure determines the amount of competition in the market.
Perfect Competition – When everything is equal, identical products.
Imperfect Competition – Less competition, other sellers but don’t sell the same, businesses able
to set their own prices.
Supply, Demand and Price
-> Important influences on demand for a product are:
- Affordability
- Competition
- Availability of Substitutes
- Needs and Aspirations of Customers.
Maslow's Hierarchy of Needs
Self
fufillment
Needs
psychological
needs
basic needs
Influences on Supply
-> To ensure supply meets demand organisations must be able to anticipate current and future
demands based on spending habits and other trends.
Other influences on Supply
-> Availability of raw materials – price increases if product in short supply, price decreases if too
much of a product.
-> Logistics – transportation of goods.
Market Structure
-> Market structure determines the amount of competition in the market.
Perfect Competition – When everything is equal, identical products.
Imperfect Competition – Less competition, other sellers but don’t sell the same, businesses able
to set their own prices.
Supply, Demand and Price
-> Important influences on demand for a product are:
- Affordability
- Competition
- Availability of Substitutes
- Needs and Aspirations of Customers.
Maslow's Hierarchy of Needs
Self
fufillment
Needs
psychological
needs
basic needs
Influences on Supply
-> To ensure supply meets demand organisations must be able to anticipate current and future
demands based on spending habits and other trends.
Other influences on Supply
-> Availability of raw materials – price increases if product in short supply, price decreases if too
much of a product.
-> Logistics – transportation of goods.
