types of market

• what are global markets ?

  Definition: Global marketing is all about selling goods or services to overseas markets. different marketing strategies are implemented, based on the region or country the company is marketing to.
• advantages of global markets

  • Higher earnings – likely to be higher earnings, if margins in overseas markets exceed those at home.
  • Spread risks – by moving into new markets risks are now spread.
  • Economies of scale – this move into global markets is likely to lead to increased economies of scale.
  • Survival – some businesses need to be global to survive
  • Saturation of the home market – the business may have the finance to expand, but be unable to do so because of competition so they take advantage of entering a new market
• local markets ?

  Is the business selling to a small geographical area e.g a local butcher

  • The local market includes customers located within the region the product or service is produced or made available.
• mass market ?

  Large target market. This is when a business targets its advertising and promotional spending at the whole market, not at a particular segment. It involves the marketing of a good or service to all possible consumers in the same way.
• key points for mass market ?

  • A product is targeted at a wide range of people
  • The market is not segmented i.e. the characteristics of types of customers are not an important factor
  • Products appeal to a wide range of customers
  • Products are widely available through a range of markets
  • Mass media is used to advertise the products
• definition of a niche market ?

  Definition: Niche marketing is where a business targets a smaller segment of a larger market, where customers have specific needs and wants.
• What is the focus of niche marketing?

  Specific segments of the market
• Why can a higher price be charged in niche markets?

  Customers value expertise and show loyalty
• How is understanding of niche market needs typically gained?

  Through market research and personal experience
• What advantage do niche marketing businesses have over competitors?

  Expert knowledge of the targeted market
• What is a benefit of lower start-up costs for niche market businesses?

  Helps in early stages of business
• Why might a niche market have little competition initially?

  Large businesses may ignore small niches
• What can cause market niches to disappear?

  Changes in economic conditions or tastes
• What happens if a niche market grows in value?

  Mass market businesses may target it
• How can existing small businesses respond to increased competition in a niche market?

  By enhancing their unique offerings
• trade market ?

  Selling to other businesses also known as Business to Business markets, or B2B
• What is trade marketing primarily focused on?

  Selling to distributors and retailers
• What is the main objective of trade marketing for producers?

  To increase demand within the supply chain
• How does effective trade marketing benefit the final consumer?

  It increases product availability for consumers
• How does trade marketing relate to consumer marketing?

  It supports traditional consumer-focused marketing
• What are the key components of trade marketing strategies?

  • Price discounts
  • Promotional support
  • Special offers (e.g., two for one)
  • Point of sale display provision
  • Competitions
• consumer market

  Selling goods/services directly to private individuals (customers!)
• product market ?

  Products are physical or tangible products e.g. a car or a television

  • A product market does not include trading in raw or other intermediate materials, and instead focuses on finished goods purchased by consumers, businesses, the public sector and foreign buyers.
• what is a product ?

  A product is the item offered for sale. A product can be a service or an item. It can be physical or in virtual or cyber form. Every product is made at a cost and each is sold at a price. The price that can be charged depends on the market, the quality, the marketing and the segment that is targeted.
• service market ?

  Definition: Services are non physical or intangible e.g. financial consultancy or teaching
• What does services marketing include?

  Both B2C and B2B services
• What types of services are marketed in services marketing?

  Telecommunications, financial, hospitality, and healthcare
• How are services typically characterized?

  They are usually intangible economic activities
• What is a service according to the definition provided?

  An activity providing consumer satisfaction through interactions
• How do services differ from physical products based on the definition given?

  Services are intangible, while products are tangible
• What role does interaction play in the definition of a service?

  It is essential for providing consumer satisfaction
• seasonal market ?

  Sales peak at certain times of year e.g. B&B bookings in the summer months
• What is the primary focus of services marketing?

  Marketing intangible economic activities
• What are the key characteristics of services marketing?

  • Intangibility
  • Involvement of interactions
  • Consumer satisfaction focus
  • Includes B2C and B2B services
• how do seasonal markets affect the industry ?

  Seasonal marketing will have a huge influence on the activities of businesses involved in these industries as each will have a critical sales period, which can make or break a business.

  • Lines of stock are adapted and changed
  • Seasonal changes have to be thought about and planned several months in advance to ensure that all aspects of the marketing mix are in place when required.