UNDERSTANDING BUYERS + MARKETS Principles of Marketing Week
4
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Learning Objectives The Market Defining the Market
Understanding and Approaching the Market The Market is Types of
Markets
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Learning Objectives The Buyers Defining the Market
Understanding and Approaching the Market The Market is Types of
Markets
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Defining the Market Impossible to define precisely, but weve
discussed its 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
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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
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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?
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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.
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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.
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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
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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 Buyers and Sellers market describe different conditions of
bargaining strength
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The Market is an Economic Entity Placing labels on markets
allows us to design strategies that match a particular economic
situation. Buyers 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.
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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
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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.
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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.
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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.
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Type of Markets Reseller Markets All intermediaries that buy
finished or semi- finished 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
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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.
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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.
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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.
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CONCLUSION Topics we have covered: The Marketing Concept
Marketing Research Process Strategic Marketing and Market
Characteristics Understanding Buyers and Markets
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CONCLUSION Each of these elements is building towards the final
project which encompasses all the parts of the marketing plan.
