What do markets do

Such people advertise for a product lending their names or images to promote a product or service. Advertisers and clients hope such approval, or endorsement by a celebrity, will influence buyers favourably.

For example, Sach. Reference price is the cost at which a manufacturer or a store owner sells a particular product, giving a hefty discount compared to its previously advertised price. Description: Reference pricing, in simple terms, is known as that price which users compare with. Loss leaders are high volume, high profile brands or products that are sold by retailers with the intention to attract customers into their premises, with the hope that those customers will end up buying other goods as well, once inside.

Examples could be steeply discounted electronics, or consumer goods, or garments. A zero percent loan for cars is a loss leader example for the dealer. Description: Ambient advertising evolved as a concept because it has a lasting impact on the minds of consumers which makes it more effective. Ambient advertising is all about creativity, and how effectively the advertiser is able to communicate the message.

Conspicuous consumption is the practice of purchasing goods or services to publicly display wealth rather than to cover basic needs.

Description: The word 'Conspicuous' here means lavish or wasteful spending. This kind of spending is generally made by people who have considerable amount of disposable income to spend on goods and services which are not necessary, but are more luxurious in nature. Market concentration is used when smaller firms account for large percentage of the total market. It measures the extent of domination of sales by one or more firms in a particular market. The market concentration ratio is measured by the concentration ratio.

Description: The market concentration ratio measures the combined market share of all the top firms in the industry. Cash Cow is one of the four categories under the Boston Consulting Group's growth matrix that represents a division which has a big market share in a low-growth industry or a sector.

It is referred to an asset or a business, which once paid off, will continue giving consistent cash flows throughout its life. Description: A Cash Cow is a metaphor used for a business or a product, which exhibits. A strategic business unit, popularly known as SBU, is a fully-functional unit of a business that has its own vision and direction. Typically, a strategic business unit operates as a separate unit, but it is also an important part of the company.

It reports to the headquarters about its operational status. Description: A strategic business unit or SBU operates as an independent entity, but it ha. Rebranding is the process of changing the corporate image of an organisation. It is a market strategy of giving a new name, symbol, or change in design for an already-established brand.

The idea behind rebranding is to create a different identity for a brand, from its competitors, in the market. Description: There are several reasons for a company to go for rebranding. One prominent factor is t. The most common conception of a market is as a physical place where we go to buy food or other products, or for the smallholder, the local gathering where periodically, they sell their produce. In economic, business, and development terms, however, 'the market' has different meanings.

It does not mean literally the physical place in which commodities are sold or purchased as in 'village market' , nor does it mean the stages that a commodity passes through between the producer and the consumer as in marketing channels.

Rather it refers in an abstract way to the purchase and sale transactions of a commodity and the formation of its price. Used in this way, the term refers to the countless decisions made by producers of a commodity the supply side of the market and consumers of a commodity the demand side of the market , which taken together determine the price level of the commodity The geographical scope of the term depends on the context in which it is being used.

It may refer to the local situation in some part of the rural economy, for example the market for cassava in southern Tanzania, or it can refer to the country as a whole, the region, or the international economy. Thus the expression 'world market' refers to the process of price formation at an international level for traded agricultural commodities. Business people tend to use the term 'market' to describe the groups of individuals or organizations that make up the pool of actual and potential customers for their goods and services.

Prices and profits and losses are the signals which suppliers use in order to decide where resources should be utilized and gives each individual supplier information about their comparative advantage; how they should specialize. In other words, monetary prices and profits and losses provide the means for economic calculation - the ability to "calculate" profits and losses - this tells suppliers if they are using resources where consumers want them i.

Consumers are able to convey their tastes and preferences for one good over another simply by buying or not buying a good at a specific price i. Economic planners those who try to allocate resources without the aid of market prices and profits and losses have failed time and time again.

Hence, we see long lines, massive shortages and surpluses, and even total devastation of those economies that do not rely on markets to allocate or ration scarce resources. The bottom line is that the choice must be made as to how a scarce resource, say a parcel of land, should be used. The rules of the game are important here.