Market Growth Rate

Give the brief Introduction of market growth rate

The market growth rate is defined as the rise in the sales of the market size of the company which has a separate customer base over a specific period of time. When in business analysis the market is required to shift its product from a separate base to another base it is known to require the interpretation of market growth rate or the market growth rate. In most of the cases, the sales growth is compared with the market growth rate. If the sales growth is greater or is equal to the market growth of the company. If this happens then it can be said that the company is performing at its best. It can also be called as the growth phase for the company as because the company is bringing in new products they are getting launched in various other areas to capture the market.

Here, in this case, it can be said that the company is in a healthy state and called to be in the growth state. On the other hand, if the business is doing well it can be said that the business is not doing well as because the sales growth will be lesser than the market growth rate in such a case the manager will be needed to analyze the reasons for allocating the cast.

The formula which is required to calculate the market growth rate is given below:

Market Growth Rate= (Change in market size)/(Original market size)

=(Current market size-Original market size)/(Original market size)

When did the market growth rate has been started and whom?

The market growth was started when the countries in the New World began the trading services with each other in various parts of the world. While most of the pioneer merchants wanted to start a huge business, therefore this required the substantial amount of the capital which no merchants were able to raise it alone. Therefore this resulted in investing poor amount of money and therefore they became the business partner of the joint-stock company. According to the influential economist who are found in the Harvard Business School the professor Theodore Levitt was the first person who has been known for developing the first article which could be related with identifying the needs and wants of the customers to identify the best product which can suit them the best. He was known as the first person who was able to keep track of the customers who are able to choose the products. Therefore Theodore Levitt is the only person who was able to find out the importance of finding a suitable customer and keeping them in their need. He says that marketing is an important t tool which should be kept by the business individuals to achieve the purpose of the business. Marketing is known to generate value by creating the connection between two and more people, customers and companies.

What was the need of this market growth rate?

The main use of them is to find a genuine customer and then provide them with the goods and services which are suitable to them in order to med the demands and needs of the person. The organization or the company if is able to understand the customer then they will be able to make the goods and services which best suits them. The marketing tool for customer-oriented needs is created by joining the value of the person where they are operating within the economy.

What is the uses of these market growth rate?

The main use of the market growth rate is to find the genuine customer and then provide them with the goods and services which are suitable to them in order to med the demands and needs of the person. The organization or the company if is able to understand the customer then they will be able to make the goods and services which best suits them. The marketing tool for customer-oriented needs is created by joining the value of the person where they are operating within the economy.  

What is the Criticism of market growth rate?

In many of the cases, the company or the organization fails to understand the basic needs of the customer. They do not serve the purpose of spending more and more money in doing the market survey by implementing the needs and demand of the customers in the needs of the business. Befoerv creating and implementing any new business product or any model the organization first needs to understand and identify the want and needs of the customer and then address them by providing the best solutions.

What is the related topic and concept of market growth rate?

Customer satisfaction is something which is related to the topic of customer satisfaction. The term customer satisfaction means that the customers are well satisfied with the delivery of the goods and services which are sold by the business organization.