Marketing and the market

IFP

Marketing is the process of identifying, anticipating and satisfying the needs and wants

of customers’ in a way that delights the consumer and also meets the needs of the

organisation.

What is a market?

A market is a place where buyers and sellers come together.

How can we measure a market?

Market size: the volume of sales of a product (e.g. the number of computers sold) or the value of sales of a product (e.g. the total revenue from the computer sales).

Market growth: the percentage change in sales (volume or value) over a period of time.

Market share: the percentage or proportion of the total sales of a product or service achieved by a firm or a specific brand of a product.

Analysing the market

Quantitative analysis examines statistical information in order to draw conclusions about the nature of the market (e.g. How much growth is there in a market? Who is the market leader?).

Qualitative analysis considers the reasons why certain actions take place.

Market Segmentation

Market segmentation is the classification of customers or potential customers into groups or sub-groups (market

segments) each of which responds differently to different products or marketing approaches.

Segmentation analysis is where a firm uses quantitative and qualitative data or information to try to discover the type of

consumer who buys its products and why.

Types of segmentation

• Age• Gender (sex)• Social class• Lifestyle• Geographic• Usage/frequency of purchase• Residential (e.g. ACORN)

Reasons for segmentation

• To increase market share

• To assist new product development

• To extend products into new markets

• To identify ways of marketing a product