Chapter 5: MGTA01 (Textbook Notes)

Market

Interaction of buyers and sellers, exchanging information about products and services for sale

Target market

Particular group of people who share similarities (eg. age, gender, income, location) as well as needs & wants

Perfect Competition

Market has large number of small sellers, sellers have similar product, similar price, with lots of choice

Oligopoly

Market in which products are available from only a small number (eg. 3-4) of large suppliers

Monopoly

Market where there is only one available supplier

Natural monopoly

Business for whatever reason (eg. size, efficiency, exclusive access) will be cheaper than rivals

Monopolistic Competition

Many sellers (indicating few barriers to entry), small number of sellers (eg. 4-5) are larger than the rest, differentiation, branding