Which term is used to describe how well a business can meet market demands?

The term that best describes how well a business can meet market demands is productivity. Productivity measures the efficiency of production, specifically how well a business can convert resources into goods and services that fulfill customer needs. A highly productive business can respond quickly to changes in market demands while maintaining quality and efficiency in production.

This ability to meet market demands effectively ties directly into productivity, as it reflects the relationship between output and input resources. The better a business is at producing sufficient quantities of products without wasting resources, the more effectively it can satisfy consumer demand.

While other terms like marketing strategy and market share relate to how businesses operate within the market, they do not directly measure the production efficiency or responsiveness to demand. The supply chain pertains to the logistics of getting products from production to consumers but does not encompass the overall effectiveness in meeting those demands like productivity does.