What is Market?

Definition of market:

emphasized the place

emphasized the buyers

stressed opportunity

Types of Market
Markets may be classified according to: Type of institution; and form

Markets According to Type of Institution

consumer markets organizational markets international markets

Markets According to Form

primary market secondary market

TYPES OF MARKET

According to type of institution

According to form

consumer

primary

organizational

secondary

international

What is market Segmentation?

THE MARKET FOR BOOKS

SEGMENTS

Teachers

Students

General Public

SUBSEGMENTS

Elementary

High School

College

What are the Advantages of Market Segmentation?

Segmentation Stratigies
concentration or single-segment strategy multi-segment strategy

The Process of Segmenting Markets

1. Identify market segments. 2. Determine if needs of customers in various segments are different. 3. Evaluate potential of each segment.

Bases of Market Segmentation

geographic demographic psychographic behavioral

Behavior Segmentation
Buyer behavior may be segmented according to: purchase ocassion benefits sought user status usage rate loyalty status readiness stage attitude toward product

Requirements for Effective Segmentation

1. 2. 3. 4. It must be measurable It must be substantial it must be accessible it must be actionable

Selecting Target Markets

Criteria to be considered which segments are right: 1. Size. 2. Expected growth. 3. Competitive position. 4. Cost of reaching the segment. 5. Compatibility with the firms objectives and resources.