Market Analysis: Current, Potential, and Objective Markets

Unit 2

1. Market Types: Understanding the Differences

Differences between the current market, potential market, objective market, and product-market.

• Current market: The demand for a specific product.
• Potential market: The maximum number of potential buyers.
• Objective market: The market a company targets with its products.
• Product market: Products regarded as substitutes.

2. Types of Markets Based on Competition

Types of markets according to the number of competitors.

• a) Monopoly
• b) Oligopoly
• c) Monopolistic Competition
• d) Perfect Competition

3. What is a Franchise?

What is a franchise? (Que es una franquicia?) A franchise is a contractual relationship that covers a wide range of service provisions, goods supply, leasing of a commercial name or brand on the part of the franchisor, and the payment.

4. Understanding the Consumer Confidence Index

What is the Consumer Confidence Index? (Cual es el indice de confianza del consumidor?) It is an indicator that measures opinion on the current and future outlook of the general and home economy.

5. Analyzing Company Competence: Key Questions

What are the key questions to analyze the competence of the company?

1. Who are the company’s/brand’s competitors?
2. How intense is the market competition?
3. How does competition affect the evolution and structure of the market?
4. How do the competition’s decisions influence marketing decisions?
5. How do companies obtain and keep a competitive advantage?

6. Reasons to Internationalize a Company

Reasons to impulse the internationalization of the company. (Razones para impulsar la internacionalizacion de una compañia)

• Difficulties in the domestic market
• Opportunities in markets abroad
• The possibility of managing scale economies in production
• Exporting technology and innovations
• Increasing the product’s life cycle and company’s influence
• Improving the company’s image
• Benefiting from Fiscal Policies
• Existing commercial agreements
• The creation of economic communities (EU, NAFTA, and Mercosur)

7. Macroenvironment Explained

What is macroenvironment? It is a set of factors in the environment that don’t have an immediate influence and affect.

8. Microenvironment Defined

What is microenvironment? It is a set of factors in the environment that are closer to the exchange relationship between the company and the market.