By David Malherbe – Published in Drakenstein Gazette – Friday 26 July 2013
Many of us know about the market for green grocers in Epping where farm produce is traded. But estate agents work in the property market and book sellers form part of the book market. So what is a market then?
Any business do business in some market and a market can be described as a place where buyers and sellers of goods or services meet and prices are determined by supply and demand. An auction is thus a perfect example of a market. And that is exactly what happens daily at the green grocers market in Epping, as well as in the property market, etc.
Therefore you need to know the market to where you would like to sell your goods and services. We call it a target market; e.g. your product or service is aimed at elderly people, babies, teen-agers, wealthy people, home owners, lovers of the outdoors, women, etc. and you advertise to reach that specific target market.
But buyers always look for cheaper prices or better quality or whatever and therefore there will always be competition among the different suppliers of similar goods and/or services. This is to the advantage of the consumers.
So you need to know your competitors in the same market. If they are financially stronger than you are, they will most probably have a bigger advertising budget. You should also know their strengths and weaknesses so you can plan your marketing accordingly. Furthermore new competitors regularly enter the market and you need to stay up to date with who they are and with what they offer.
Then from time to time different markets offer certain opportunities or threats. An opportunity is a favorable situation that if utilized, can earn a lot of extra money for your business during a certain season. Threats on the other hand, can cause you great harm and cost you money, if not handled timely and in an appropriate manner.
To have a business is to be a player in one or other market and to make a good profit you need to be a skilled player and you need to be alert to what is happening in that market.
David Malherbe and Dewald Scholtz will discuss this topic in more detail Monday evening from 19:00 till 20:00 on Radio KC 107.7 FM in the program “You the Entrepreneur”
(David Malherbe is a business- and career consultant and lives in Wellington. He can be contacted via his web page www.jedidiah.org.za or at T/F 021-873 0262.)