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MARKET SECTOR a set of businesses that are buying and selling such similar goods and services that

they are in direct competition with each other. “Market sectors” is a qualification method which looks at the type of business and groups them based on generally accepted names. One of the most common classifications breaks the market down into 11 different market sectors. Two are generally regarded as “defensive” and the other nine are referred to as “cyclical”. These market sectors are: Cyclical Stocks Transportation Technology Health Care Financial Energy Consumer Cyclical Communication Capital Goods Basic Materials Defensive Stocks Utilities Consumer Staples

There are two important concepts with market sectors. First, by understanding the different market sectors, it is possible to find relationships between different companies. If you don’t know that one company is in the health care sector and another is in the energy sector, you might compare their earnings per share and draw conclusions that don’t apply. Second, understanding market sectors allows you to add valuable protection to your stock portfolio. By investing in a number of different market sectors, you can build a higher level of security for your investment. MARKET DEMOGRPHIC Demographic segmentation consists of dividing the market into groups based on variables such as age, gender family size, income, occupation, education, religion, race and nationality. As you might expect, demographic segmentation variables are amongst the most popular bases for segmenting customer groups. This is partly because customer wants are closely linked to variables such as income and age. Also, for practical reasons, there is often much more data available to help with the demographic segmentation process. The main demographic segmentation variables are summarised below: Age Consumer needs and wants change with age although they may still wish to consumer the same types of product. So Marketers design, package and promote products differently to meet the wants of different age groups. Good examples include the marketing of toothpaste (contrast the branding of toothpaste for children and adults) and toys (with many age-based segments).

By contrast. Examples include Aldi (a discount food retailer). many companies focus on marketing products that appeal directly to consumers with relatively low incomes. Moet & Chandon champagne and Elegant Resorts . Lifestyle Marketers are increasingly interested in the effect of consumer "lifestyles" on demand. and discount clothing retailers such as TK Maxx. there are many different lifestyle categorisation systems. Social class Many Marketers believe that a consumers "perceived" social class influences their preferences for cars. recording. Good examples include Coutts up-market travel company.tutor2u. many of them designed by advertising and marketing agencies as a way of winning new marketing clients and campaigns! http://www. Many companies target affluent consumers with luxury goods and convenience services. Airtours holidays. home furnishings. The objective of a market survey is to collect information on various aspects of the business. analysis and interpretation of data relating to the existing or potential market for a product or services A market survey is a useful tool for contact with the market The systematic and intelligent use of this tool can reduce risks of decision making under conditions of uncertainty Through a market survey we can obtain information in the following areas: size of market pattern of demand buying habits and motives past and present trends for this or other products The following five steps in doing a market survey were also discussed in the session: Step1: Define objectives and specify information to be collected • Identifying sources of information • Assessing time and costs required for the survey • Selecting methodology • Preparing an action plan .asp MARKET SURVEY A market survey is an important requirement for initiating any successful business. magazines and toiletries and cosmetics. leisure activities and other products & services. There is a clear link here with income-based segmentation. The best examples include After the market survey. Income Another popular basis for segmentation. This survey is a tool through which we can minimize risk. clothes. hairdressing. Unfortunately. A market survey is a systematic collection.Gender Gender segmentation is widely used in consumer marketing. the results must be analyzed in order to finalize a business plan.

The trend projection method is used under the assumption that the factors responsible for the past trends in variables to be projected (e. annual sales data is plotted on a graph paper and a line is drawn through the plotted points. Graphical Method: .g.under this method. the projections made through this method are not very reliable. The use of this method requires a long and reliable time series data. equipment • Competitors • Furniture • Manpower • Capital and risks • Rules and regulations • Marketing DEMAND PROJECTION (TREND PLOT) Trend projection method is a classical method of business forecasting. There are three (3) techniques of trend projection based on time – series data. This method is essentially concerned with the study of movement of variable through time. Although this method is very simple and least expensive. participants discussed the following ten broad areas for information collection: • Market • Buyers/ customers • Raw materials • Machinery. sales and demand) will continue to play their part in future in the same manner and to the same extend as they did in the past in determining the magnitude and direction of the variable. The reason is that the extension of the trend line involves subjectivity and personal bias of the analysis.Step 2: Select a sample • Determining where to conduct the survey • Determining when to conduct the survey Step 3: Prepare a questionnaire for the survey Step 4: Collect data and analyze the information obtained Step 5: Prepare a report based on data analyzed In the session. . 1. Then a free hand line is so drawn that the total distance between the line and the point is minimum.

) 3. The most common types of trend equation are o 1)linear 2) exponential trends  Linear Trend: . Or its semi – logarithmic form -> Log y = = log a + bt. a time series date may show various trends. Where S = annual sales . Fitting Trend Equation: Least square method: . Double log trend equation of equation     Y = aTB Or it’s double logarithmic form Log y = log a + b log t This form of trend equation is used when growth rate is increasing. The parameter b given the measure of annual increase in sales)  Exponential trend:. (S = A + BT . Limitation The first limitations of this method arise out of the assumption that the past rate of change in the dependent variable will persist in the future too. Therefore. Under this method.When a time series data reveals a rising trend in sales than a straight-line trend equation of the following form is fitted. T = Time (in year) . a trend line (or curve) is fitted to the time – series data with the aid of statistical techniques.Fitting trend equation is a formal technique of projecting the trend in demand. A & B are constant. . o When plotted. Also it cannot be used where trend is cyclical with sharp turning points of trough and perks. Second. This form of trend equation is used when growth rate is constant. The form of the trend equation that can be fitted to the time series data is determined either by plotting the sales data or by trying different forms of trend equations for the best fit.When sales ( or any dependent variable) have increased over the past years at an increasing rate or at a constant percentage rate. this method cannot be used for short-term estimates.2. than the appropriate trend equation to be used is an exponential trend equation of any of the following type ( Y = aebt . the forecast based on this method may be considered to be reliable only for the period during which this assumption holds.

http://www. This calculation is sometimes done over specific countries such as Canada market share or USmarketshare. 67 percent responded that [1] they found the "dollar market share" metric very useful. and it frequently drives strategic or tactical action. lowering prices. The main advantage of using market share as a measure of business performance is that it is less dependent upon macroenvironmental variables such as the state of the economy or changes in tax policy. although some industries are harder to measure with accuracy than others.This method of forecasting is used only for short – term predictions. In other words. However.Box – Jenkins Method: . The latter will almost always be more difficult to achieve. Investors can obtain market share data from various independent sources (such as trade groups and regulatory bodies)." Increasing market share is one of the most important objectives of business. particularly products sold into the United States market. This metric is used to give a general idea of the size of a company to its market and its . Investors look at market share increases and decreases carefully because they can be a sign of the relative competitiveness of the company's products or services. or through advertising. in addition to trying to grow the size of the total market by appealing to larger demographics.wikipedia." In a survey of nearly 200 senior marketing managers. Box-Jenkins technique can be used only on those cases in which time-series analysis depicts monthly or seasonal variation recurring with some degree of regularity. Stationary time series data is one. Companies are always looking to expand their share of the market. As the total market for a product or service grows. which does not reveal long term trend. http://en. where they may be subject to market share liability. this method is suitable for forecasting demand with only stationary time series sales data. while 61% found "unit market share" very useful. "Marketers need to be able to translate sales targets into market share because this will demonstrate whether forecasts are to be attained by growing with the market or by capturing share from competitors. Market share is closely monitored for signs of [1] change in the competitive landscape. A company that is growing its market share will be growing its revenues faster than its competitors. and often from the company itself. Market share is calculated by taking the company's sales over the period and dividing it by the total sales of the industry over the same The percentage of an industry or market's total sales that is earned by a particular company over a specified time period. a company that is maintaining its market share is growing revenues at the same rate as the total market. Market share increases can allow a company to achieve greater scale in its operations and improve profitability.html MARKET SHARE "Market share is the percentage of a market (defined in terms of either units or revenue) accounted for by a specific entity. increasing market share may be dangerous for makers of fungible hazardous products. Besides.mbanotesworld.

Value is subject to seller and buyer's perception and interpretation of parameters that they decide to take into consideration. [3] http://en. sometimes people are willing to pay more than the asking price rather than spend time and effort to get it cheaper elsewhere. while market value does not. and the epiphenomenal manifestation of variations in stockholder value on the financial markets (notably on stock markets). but an introduced concept from individuals and companies as a business tool. No transaction means zero value. Although market value may meet these criteria. while other people usually refer to their very own perceptions and interpretations of what those people think is important. market value requires this element of "special value" to be disregarded. Market value is also distinct from fair value in that fair value depends on the parties involved.When it comes to electric equipment the best source is The Orion Blue Book or Usedprice. Is the paid price then Market Value or Market Price? Both. because people pay what they want in spite of whatever advice. . this is not necessarily always the case. it is important to underline the importance of the time and place range wherein sellers and buyers meet. while market value is “the true underlying value” according to theoretical standards. the market must be informationally efficient and rational expectations must prevail. and [2] without compulsion. international? Considering that Market Price is what people agree to pay for something at a given moment at a given place. Recently. For example. where particular synergies between the two parties may mean that the price that is fair between them is higher than the price that might be obtainable in the wider market. they sugest to implement new methodologies able to bring strategy back into financial performance measures. IVS currently notes fair value "requires the assessment of the price that is fair between two specific parties taking into account the respective advantages or disadvantages that each will gain from the transaction. regional. Picone & Minà (2012) have underscored the subtle but important difference between the firms’ capacity to create value through correct operational choices and valid strategies. Fair value is frequently used when undertaking due diligence in corporate transactions. In this perspective. Mocciaro Li Destri. For market price to equal market value. whatever value estimation or selling price expectation. And if several people want the same thing while there is not enough for everybody that wants it. Any whatever article should be explained in this context. on the one hand.asp#ixzz29ePSkKAp MARKET VALUE International Valuation Standards defines market value as "the estimated amount for which a property should exchange on the date of valuation between a willing buyer and a willing seller in an arm’s-length transaction after proper marketing wherein the parties had each acted knowledgeably." Market value is a concept distinct from market price. but it forms part of the [4] assessment of fair value. national. The concept is most commonly invoked in inefficient markets or disequilibrium situations where prevailing market prices are not reflective of true underlying market value. In other words "special value" may be generated. which is “the price at which one can transact”. When a lot of popular items in a place is almost sold out. Market Value and Market Price are identical. Relativity of market theories Readers should realize that Market Value is not exact science.http://www. It is wrong to state that things have any stand-alone value.wikipedia. The Local and Instant Market Value of a specific item is exactly the same as the Local Market Price. because value depends upon transactions.investopedia.

The current quoted price at which investors buy or sell a share of common stock or a bond at a given time.Definition of 'Market Value' 1. The market capitalization plus the market value of debt." 2. In the context of Most investors who use fundamental analysis to pick stocks look at a company's market value and then determine whether or not the market value is adequate or if it's undervalued in comparison to it's book value.asp#ixzz29eSVdF6q .investopedia." Investopedia explains 'Market Value' Investopedia explains 'Market Value' 1. net assets or some other measure. market value is often different from book value because the market takes into account future growth potential. Sometimes referred to as "total market value. Read more: http://www. Also known as "market price.