Learning Objectives
The Market
Defining the Market
Understanding and Approaching the Market
The Market is…
Types of Markets
Learning Objectives
The Buyers
Defining the Market
Understanding and Approaching the Market
The Market is…
Types of Markets
Defining the Market
Impossible to define precisely, but we’ve
discussed it’s definition as:
A group of potential buyers with needs and wants
and the purchasing power to satisfy them.
Markets are people whether they are individuals
or groups.
Without people there would be no need to market
Understanding and
Approaching the Market
People and organizations must meet certain basic
criteria in order to represent a valid market
Must be a true need or want for the product, service
idea that can be recognized or latent
Must have the ability to pay for the product
Much have the authority to buy the product
Those that meet the criteria must be large enough to be
profitable for the marketer
Understanding and
Approaching the Market
All five previous criteria must be met to equate a
market.
Failure to meet even one may negate the visibility
of a market
Look at the pharmaceutical industry
Why do some diseases remain uncured?
The Market is a Place
Thinking of the market as a place “the marketplace”
is a common practice of the general public.
Such locations do exist as geographical areas within
which trading occurs.
In this context we can think of world markets,
international markets, American markets, regions,
states, cities, and parts of cities.
A shopping center, a block, a portion of a block and even
the site of a single retail store can be called a market.
The Market is a Place
Most times marketers try to define the people of a
marketplace.
However, the place description of a market is
important as well.
Goods must be delivered to customers attracted
towards particular places where transactions are
made
The identification of markets is useful for market
decision making purposes.
The Market is a Place
Factors such as the following are all affected by the geographic
market.
Product features
Price
Location of facilities
Routing salespeople
Promotional design
A market might be somewhere other than a geographic region, such
as a catalogues or ad that allows you to place an order
The Market is an
Economic Entity
A market is characterized by a dynamic system
of economic forces.
The 4 biggest economic forces are: Supply,
Demand, Competition, and Government
Intervention.
Terms Buyer’s and Seller’s market describe
different conditions of bargaining strength
The Market is an
Economic Entity
Placing labels on markets allows us to design
strategies that match a particular economic
situation.
Buyer’s market, abundance of product, prices are
low, and customers dictate the terms of the sale.
The interactions of these economic factors is what
creates a market.
Type of Markets
Now that we have defined markets in a general
sense, it is useful to discuss the characteristics
of the primary types of markets:
Consumer markets
Industrial markers
Institutional markets
Reseller markets
Type of Markets
Consumer Markets
Include those individuals and households who buy and
consume goods and services for their own personal use.
Not interested in reselling the product or setting
themselves up as a manufacturer.
There are thousands of new products, services and ideas
being introduced each day
The increased capability of consumers to both afford these
products, the size and complexity and future growth potential
of the consumer market is staggering.
Type of Markets
Industrial Markets
Include organizations and the people who work for
them, those who buy products or services for use
in their own businesses or to make other products.
These type of markets function differently than do
consumer markets and the buying process in
particular different.
Type of Markets
Institutional Markets
Includes various types of profit and non-profit institutions
such as, hospitals, schools, govt agencies, and churches
Differ from the typical business in that they are not
primarily motivated by profits or market share.
Tend to fulfill more intangible needs.
Whatever profits exist after all expenses are paid are put
back into the institution.
The set of controls and restrictions means marketers must
use different strategies to be successful.
Type of Markets
Reseller Markets
All intermediaries that buy finished or semifinished products and resell them for profit are
part of this market.
Operate under unique business characteristics
Producers are cognizant of the fact that
successful marketing to resellers is just as
important as successful marketing to consumers
Buyers
What is a Buyer?
A predetermined group or individual who fits the
target market, and that is either already an existing
customer of a product or service and/or a person
who the marketer hopes will become a customer.
Buyers
Understanding buyers has been, in the past, a more
simple process.
With the introduction of the internet, particularly social
media, buyer behavior is more difficult to understand
The relationship between business and buyers is
undergoing the most significant transformation in
decades.
Continually redefines our knowledge of how buyers make
decisions.
Buyers
Understanding buyers has been, in the past, a more
simple process.
With the introduction of the internet, particularly social
media, buyer behavior is more difficult to understand
The relationship between business and buyers is
undergoing the most significant transformation in
decades.
Continually redefines our knowledge of how buyers make
decisions.
CONCLUSION
Topics we have covered:
The Marketing Concept
Marketing Research Process
Strategic Marketing and Market Characteristics
Understanding Buyers and Markets
CONCLUSION
Each of these elements is building towards the
final project which encompasses all the parts of
the marketing plan.
CLASS PRESENTATIONS