9609 · 3.1.3
Markets — FAQ
Frequently asked questions for 9609 Markets. Direct answers first, then deeper explanation — then practise with marking.
Is market size just the number of customers a business has?
No, this is a common misconception. Market size refers to the total sales of all businesses in the entire market, not just one firm's customer base. Furthermore, it can be measured by the total value of sales (e.g., £1 billion) or the total volume of units sold (e.g., 50 million units), not just the number of individual customers.
Does a high market growth rate automatically mean a business will be successful?
Not necessarily. While a high-growth market presents significant opportunities, it also tends to attract many new competitors. This can lead to intense rivalry, price competition, and increased marketing costs. A business must still have an effective strategy to compete and capture a share of that growth; success is not guaranteed simply by being in a growing market.
Is an online market always better than a physical market?
No, each has distinct advantages and disadvantages. Online markets offer global reach and lower fixed costs but face intense price competition, high distribution costs, and security concerns. Physical markets provide a tangible customer experience, immediate product availability, and personal service, but have high overheads and limited geographical reach. The 'better' option depends entirely on the product, target audience, and business strategy. Many successful businesses use a hybrid 'clicks-and-mortar' approach.