4.1 THE ROLE OF MARTKETING: ACTIVITY B
1. Explain the difference between market size and market growth.
Market size refers to the quantity of product sold in a market sector, whereas market
growth refers to the percentage change of market size over a given period of time.
2. Explain why it is important to a car manufacturer selling to China that the car market is
growing so rapidly.
It is certainly important for the car market to be growing so rapidly for the car
manufacturers selling to China because with rapid growth in the car market would mean
higher demand on the products, thus increasing sales. This certainly is important for car
manufacturers to ensure their company is profitable. By selling in a rapidly growing
market with high demand on cars, they can further maximize profit while reducing costs
on marketing or promoting their products. Hence, selling products in a rapidly growing
market can help maximise profits.
1. Explain the difference between market size and market growth.
Market size refers to the quantity of product sold in a market sector, whereas market
growth refers to the percentage change of market size over a given period of time.
2. Explain why it is important to a car manufacturer selling to China that the car market is
growing so rapidly.
It is certainly important for the car market to be growing so rapidly for the car
manufacturers selling to China because with rapid growth in the car market would mean
higher demand on the products, thus increasing sales. This certainly is important for car
manufacturers to ensure their company is profitable. By selling in a rapidly growing
market with high demand on cars, they can further maximize profit while reducing costs
on marketing or promoting their products. Hence, selling products in a rapidly growing
market can help maximise profits.
