ABSTRACT

This chapter presents a description of markets and products. While companies are in competition for customers, not all companies are in competition with each other. Companies that provide similar products to the same market are particularly in competition with each other for a share of the market. The chapter deals with the demand for goods and services. Consumer demand is dictated by consumer needs, consumer income and the price. Producers can be divided into business sector according to the similarity of products and production processes. The chapter also deals with the supply of products. Supply is dependent upon the cost and the price of products. Costs are an important aspect of competition. The segmentation of markets has meant that power within the food, tobacco and beverage industry production chain is shifting from the producers to the retailers.