1.3.3 Evaluating a Business Opportunity 2/4

Question	Answer
Four things to consider when assessing the demand for a product	Size of the Market Market Niches Potential Market Growth Existing Market Segments
How do you calculate Market Size?	Price per unit X Amount sold
Market size can be calculated using...	Value or Volume
Definition of Market Share	The portion of a particular market that is held by a business, product, brand OR a number of businesses and products.
How is Market Share calculated?	Sales / Total market Sales X 100%
Market growth refers to...	an increase in the size of the market for a particular product
Definition of Market Segmentation	Grouping consumers with similar characteristics together into more manageable chunks
Four ways market segmentation can be done	Geographic Demographic Psychographic Behaviouristic
Example of Geographic Segmentation	Different COuntries
Three examples of Demographic Segmentation	Age Gender Income
Example of Psychographic Segmentation	Social Class
Example of Behaviouistic Segmentation	How often people buy...
What is a Niche Market?	A small segment of a large market. Requires specialist products
Two advantages and Disadvantages of a Niche Market	A- Can charge Higher prices A- Little/No competition D- Fewer potential customers D- May get taken over by larger companies

Resource summary

	Created by Molly Hills over 9 years ago