MKTNG

• Market


  • A place where sellers and buyers exchange goods (or services) upon an agreed price
  • A group of people or organizations that buy a particular good, service, or concept
• Types of Market


  • Consumer market
  • Organizational market
  • International market
• Consumer market


  Buyers who intend to directly consume a product or service
• Organizational market


  Buyers of products or services whose intention is to produce another product or service
• International market


  All types of buyers found abroad including consumers and organizations
• Types of Market Form

  • Primary market
  • Secondary market
• Primary market


  Market formed when a firm introduces a new product class in response to latent demand or needs
• Secondary market


  An offshoot of the primary market formed when customers develop specific needs or preferences
• Market Segmentation


  A sub-group of a particular market, which is composed of units with more or less similar characteristics
• Advantages of Market Segmentation

  • Forces the marketer to be aware of realities in the market
  • Provides clues in the design of products and marketing programs that will reach the prospective customers
  • Can help identify opportunities for new product development
  • Can help improve the strategic allocation of marketing resources
• Segmentation Strategies


  • Concentration or single-segment strategy
  • Multi-segment strategy
• Concentration or single-segment strategy


  Long-term decision of the company to deal only with a particular segment of the market
• Multi-segment strategy


  Providing products or services to two or more segments of the target market
• The Segmentation Process


  1. Identify market segments

  2. Determine if needs of customers in various segments are different

  3. Evaluate potential of each segment

  4. Abandon idea of segmentation if no
• Bases for Market Segmentation

  • Geographic segmentation
  • Demographic segmentation
  • Psychographic segmentation
  • Behavior segmentation
• Geographic segmentation


  Dividing the market into different geographical unit
• Demographic segmentation


  Dividing the market into segments on the basis of demographic variables
• Psychographic segmentation


  Classification of buyers or consumers by some psychological characteristics they possess in common
• Behavior segmentation


  Grouping of buyers on the basis of their knowledge, attitude, use, or response to a product
• Bases for Market Segmentation

  • nations
  • regions
  • provinces
  • cities
  • towns
  • barangays
  • social class
  • family size
  • family lifecycle
  • income
  • occupation
  • education
  • religion
  • race
  • nationality
  • purchase occasion
  • user status
  • usage rate
  • loyalty status
  • readiness stage
  • attitude toward product
  • benefits sought
• Buyer Readiness Stage and the Marketing Task

  1. Buyer unaware

  2. Buyer aware

  3. Buyer informed

  4. Buyer interested

  5. Buyer desirous

  6. Buyer intends to buy
• Buyer Readiness Stage


  Stages of buyer awareness and interest in a product
• Marketing Task


  Convert buyers to next stage of readiness
• Buyer Attitudes Towards a Product

  • Enthusiastic
  • Positive
  • Indifferent
  • Negative
  • Hostile
• Buyer Attitude


  Buyer's level of enthusiasm or dislike for a product
• Marketing Task


  Appropriate marketing approach based on buyer attitude
• Requirements for Effective Segmentation

  • Measurable
  • Substantial
  • Accessible
  • Actionable
• Attitude toward the product

  • e
  • Toward the product; may buy if little effort is necessary
  • Does not like the product; will not attempt to buy
  • Much dislike for the product; will even influence others not to buy the product
• Marketing Task


  • Make product available
  • A little selling effort is necessary
  • Make product easily available
  • Much attitude changing is required
  • A most difficult task of attitude conversion
• Requirements for Effective Segmentation

  • It must be measurable
  • It must be substantial
  • It must be accessible
  • It must be actionable
• Selecting Target Markets


  • Size - Must be large enough to be worth serving
  • Expected growth - Some unattractive markets may grow in the future
  • Competitive position - Strength of competition must be analyzed
  • Cost of reaching the segment - Segment must be easily reached
  • Compatibility with the firm's objectives and resources - Firm must have enough resources to serve the segment
• A market is not just a place, it also connotes a group of people or organizations that buy a particular good, service, or concept
• Types of markets by institution

  • Consumer markets
  • Organizational markets
  • International markets
• Primary market


  Formed when a firm introduces a new product class in response to latent demand or needs
• Secondary market


  An offshoot of the primary market when consumers have developed preferences
• Market segment


  A subgroup of a particular market, which is composed of units with more or less similar characteristics
• Market segmentation is usually beneficial to the firm, but catering to the whole market may be more profitable in some cases
• Advantages of market segmentation

  • Marketer is aware of realities in the market
  • Provides clues in the design of products and marketing programs
  • Identifies opportunities for new product development
  • Improves the strategic allocation of marketing resources
• Strategies for market segmentation

  • Geographic
  • Demographic
  • Psychographic
  • Behavioral
• Steps in market segmentation

  1. Identification of market segments

  2. Determination of differences in needs or benefits sought

  3. Evaluation of the present and future attractiveness of each segment