Chapter 3

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Industry, Category, Customer Need

Market Collective set of customers purchasing products or

services from sellers

Industry Group of sellers making products or delivering

products that are substitutes for each other

Category Group of competing firms in a segment of an industry

Customer Enduring desire from customers to satisfy physical,
need emotional, or intellectual requisites

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Figure 3.1 - Some Popular Market Sizing
Data Sources

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Market Trends
 Market trends: Ongoing behaviors in a
market that suggest its future state
 P.E.S.T. analysis: Study of political,
economic, social, and technological trends to
gauge the effects of environmental forces on
the market

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Figure 3.4 - P.E.S.T. Analysis: Political,
Economic, Social, and Technological Trends

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Market Forces
 Five Forces model: Analysis of five different
forces acting on industries, and
countermeasures against those forces
 Threat of entry
 Intensity of rivalry
 Pressure from substitute products
 Bargaining power of buyers
 Bargaining power of suppliers

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Figure 3.6 - P.E.S.T. Analysis: Political, Economic,
Social, and Technological Trends in Travel

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Publishing as Prentice Hall

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