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Simple English definitions for legal terms
geographic market
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A quick definition of geographic market:
A geographic market is a place where people want to buy certain things. It can be a specific area or group of people who want to buy something. For example, if many people in a certain city want to buy pizza, that city is a geographic market for pizza. It's important for businesses to know their geographic market so they can sell their products to the right people in the right place.A more thorough explanation:
A geographic market is a specific area or demographic segment where there is demand for particular goods or services. It is a part of the relevant market that identifies the regions in which a firm might compete. If a firm can raise prices or cut production without causing a quick influx of supply to the area from outside sources, that firm is operating in a distinct geographic market.
For example, if a company sells surfboards in California, their geographic market would be the state of California. If they try to raise prices, they will not face competition from surfboard sellers in other states because shipping costs would make it unprofitable for those sellers to compete in California.
Another example is a restaurant that serves a specific type of cuisine, such as Mexican food. Their geographic market would be the area where there is demand for Mexican food, such as neighborhoods with a high Hispanic population or areas with a lack of Mexican restaurants.