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Boom
Glossaries
| Term | Definition |
|---|---|
| Boom | A Boom (or 'market boom') is a phase of extremely rapid, sudden, and intense economic growth concerning a specific sector, product, or trend. It is an expansion that significantly exceeds normal growth rates, often driven by a peak in demand, a technological innovation, or a radical change in consumer habits. What It's For / Why It's ImportantIdentifying a boom is crucial for business strategy. For marketing, it means that demand is outpacing supply and the main objective shifts from 'creating' demand to 'capturing' market share as quickly as possible. It is important for allocating budgets (often drastically increasing them for advertising and production) and for capitalising on an opportunity before the market becomes saturated. When It Is Used / In What Context It Is UsefulIt is used in market analysis, business reporting, trend forecasting, and strategic planning. It is a common term when analysing the adoption of new technologies (e.g. "the smartphone boom") or following global events that modify behaviours (e.g. "the e-commerce boom" during the pandemic). Practical ExampleThe "dot-com boom" in the late 1990s, when any company with a ".com" in its name received huge investments. A more recent example is the boom in food delivery services or video conferencing platforms (like Zoom) in 2020. Extra InsightThe biggest challenge of a boom is distinguishing it from a 'bubble'. A boom can lead to sustained growth that stabilises at a higher level (the market matures). A bubble, on the other hand, is driven by speculation and is destined to 'burst', leading to a market crash. A sensible marketing strategy during a boom does not just focus on customer acquisition, but already works on retention and brand loyalty to survive the inevitable stabilisation phase. |
