Understanding The Market Class 11 Notes Entrepreneurship Chapter 5 - CBSE
Chapter : 5
What Are Understanding The Market ?
Market
Market is the place where buying and selling takes place.
Types Of Market
Traditional Market
(Corresponds to early production phase)
Modernised Market
(Market of Seventies and Eighties)
Emerging Market
(E-commerce)
E-Business
It refers to carrying on the business activities both industrial and commercial through computer network i.e. Internet.
Roles of E-business
- Quick solution to doubts
- Updated information
- Extending markets
- Shortening of distribution channel
- Saving of time and cost
- Less risk in payments
- Easy to launch new products
- Lower personnel cost
E–commerce
The interaction of the firm its customers and suppliers over the internet.
Market Environment
It refers to factors and forces that affect a firm’s ability to build and maintain successful relationship with customers. Factors governing market are:
Micro Environment (Primary forces)
- Producer/seller
- Competitors
- Marketing intermediaries
- Customers
- Suppliers
Macro Environment (Secondary forces)
- Demographic
- Economic
- Technological
- Political
- Natural
- Cultural
Market Research
Market research is referred as the systematic study and evaluation of all factors bearing on any business operations which involves the transfer of goods from a producer to consumer.
Research Instrument
Research instrument means the instruments, tools, methods or techniques employed in research for gathering the information. One of the most commonly used instrument use for research is market survey.
Methods Used For Market Survey
- Personal interview
- Telephonic interview
- Direct mail interview
- Email interview
- Online interview
- Questionnaire Development
- Field work
Process of Conducting Market Survey
- Step-1: Planning the survey
- Step-2: Field work
- Step-3: Analysis and Interpretation of data
- Step-4: Report making
Importance of Market Survey
- Customer is a king
- Risk reduction
- Helps attaining objectives
- Market overview
- Forecast
- Facilitates decision making
Strategic Alternatives Before An Enterprise
Grand Strategies
- Stability (maintain)
- Expansion (growth)
- Intensification
- Penetration Strategies
- Market Development Strategies
- Product Development Strategies
- Integration
- Vertical Expansion
- Horizontal Expansion
- Diversification
- A new lines of business may be added which is either related to the current business or may be unrelated.
- Intensification
- Retrenchment Divestment strategies
- Combination Strategies
Business
Business is an economic activity which involves production or processing and sales or exchange of goods and services at regular basis components of business an aim of earning profit.
Components of Business
- Industry
- Commerce
Industry
Industry refers to all the economic activities involved in converting raw material into finished goods, which are ultimately consumed by consumers.
Types of Industry
Primary Industry
- Extractive
- Genetic
Secondary Industry
- Manufacturing
- Analytical
- Synthetic
- Processing
- Integration or Assembling
- Construction
- Tertiary or Service
Commerce
It is concern with all those activities which facilitate exchange of goods/services or relates to the transfer of goods from one place of production to ultimate consumers.
Trade
Internal or Home
- Wholesale trade
- Retail trade
External or Foreign
- Import trade
- Export trade
- Enterpot trade
Auxiliaries or Aids to trade
- Transportation
- Banking
- Insurance
- Warehousing
- Advertisement and Salesmanship
Marketing Mix
It is the combination of Product, Price, Promotion and Place activities needed to meet the marketing objectives in the target market.
Marketing Mix Variables
- Product
- Price
- Place
- Promotion
Product Mix
Product
A Product is anything that can be offered to a market for attention acquisition, use or consumption. It is tangible in nature having definite size, shape, colour, etc.
Classification of Product
Durability
- Perishable
- Durable
- Non-durable
Utility
- Capital/Producer goods
- Consumer goods
- Intermediary goods
Weight
- Heavy and bulky goods
- Voluminous goods
Place Mix
It involves all the activities that are needed to make the product available to the target customers.
Elements of Place mix
Channel of Distribution
Direct Channel
- Producer
- Consumer
Indirect Channel
- Producer
- (One-level channel) Retailer
- Consumer
- (Two-level channel) Wholesaler
- Retailer
- Consumer
- Retailer
- (Three-level channel) Wholesaler
- Wholesaler
- Retailer
- Consumer
- Retailer
- Wholesaler
- (One-level channel) Retailer
Modes of Distribution
- Transportation
- Insurance
- Warehousing
- Inventory management
Promotion Mix
It refers to all such activities which intend to inform customer about the products of the company and persuade them to buy these products.
Elements of Promotion Mix
- Advertising
- Personal selling
- Sales promotion
- Publicity
Price Mix
Price refers to the amount of money which a customer has to pay to buy the product.
Factors affecting Price Determination
- Product cost
- Utility and demand for the product
- Extent of competition in the market
- Government and legal regulations
- Pricing objectives
- Marketing methods used
- Term of credit
Methods used for pricing
- Cost plus pricing
- Variable price method
- Base price and discount method
- Market rate method
- Skimming price method
- Penetrating pricing method
Entrepreneurship Most Likely CBSE Question Bank
Class 11 Exam 2025
Binding: Paperback
Language: English
Pages: 248
