Market Vs Market Analysis

2. Theoretical background

2.1 Definition of markets

Markets are the set of actual and potential buyers of a product (Innovation Management and Marketing).

A market is one of the many varieties of systems, institutions, procedures, social relations and infrastructures whereby parties engage in exchange. While parties may exchange goods and services by barter, most markets rely on sellers offering their goods or services (including labor) in exchange for money from buyers. https://en.wikipedia.org/wiki/Market_(economics) *Market and marketing is totally different. Marketing is the process by which companies create value for customers and build strong customer relationships to capture value from customers in return. (marketing ppt p-47)

2.1.1 Classification

For example, the market for retailers is very large and can accommodate rival business quiet easily. On the other hand, the market for specialize chemical equipment is relatively small, providing fewer opportunities for other firms to break into market and limiting the available customers.

Market size can be evaluated based on the present market and its potential market if the use of products is expanded. For example, government date and customer surveys can be a scientific basis for a company to measure the market size:

 Market growth rate.

The most common way to predict the market growth rate is to extrapolate the historical date into further, but this way may cause the first order estimate, which is unable to estimate the important turning point. It will be more accurate to study on other data like demographic change and sale growth in complementary products

 Market profitability

The function of market is to sell or offer products in order to meet or fulfill the customers’ needs and expectations, then gets value from customers. So the market profitability, to some extent, determines whether the market has the worth or not. market profitability can be influenced by a lot of factors, such as competition, buyer power and so

[4] Yadong, L. (1999), Entry and Cooperative Strategies in International Business Expansion Age, Greenwood Publishing Group, ISBN 978-1-56720-161-1

 Intermediate Modes/joint Venturing

Joint Venturing involves joining with foreign companies to produce or market products or services (Marc Opresnik, 2015, P270

 Hierarchical Modes

The highest involvement in a foreign market comet through hierarchical modes(also called direct investment). The is an approach to going global that involves a direct investment in a foreign country by setting up a separate and independent production facility or office (Robbins and Coulter,2005).书里

2.6 Marketing Mix

The marketing mix is a business tool used in marketing and by marketers. The marketing mix is often crucial when determining a product or brand's offer, and is often associated with the four P's: price, product, promotion, and place.

McCarthy, Jerome E. (1964). Basic Marketing. A Managerial Approach. Homewood, IL: Irwin.

Marketing mix is a basic term in the field of marketing. It refers to do combinations within the controllable elements (Product, Promotion, Place, Price) according to the marketing target and customer demand in order to get maximum