The four kinds of market are:
- Commodity is the market for raw materials from the primary sector of production;
- Industrial is the market for manufactured product that industries need;
- Financial is the market for the services offered by banks;
- Consumer is the market of consumers who buy the goods and services produced by the other three markets.
Marketing is a planning process that
- indentifies needs and wants of potential customers,
- helps create a product or service to meet these requirements and
- then tries to convince potential customers to buy the new product or service.
Marketing experts divide the population into different categories, called market segments.
The experts examine the categories in detail by age, sex or cultural group and decide where to target a particular
product or service. The target market influences the nature of the product, its price, where it is available and
how it is promoted.
The analysis of market research (study of market characteristics) data influences the production, the price, the
distribution and the promotion of a product or service.
Can be divided into:
- Primary or Field research is carried out directly with consumers. it is an useful way of collecting relevant
information about consumers needs, wants and opinions.
- Secondary or Desk research uses existing information . it is a useful way of examining the entire market and
analysing future market trends.
There are four Ps that they form the marketing mix : PRODUCT, PRICE, PROMOTION and PLACE.
The product is the most important factor in the marketing mix. Each product has elements that distinguish it
from similar. A brand name is a trade name that can only be used by used the firm that has registered it.
The price of a product can depend on
-internal factors such as the cost of production and
-external factor such as the price of competing products on the market.
Prices are set using MARKET-LED PRICING STRATEGIES which consider factors like supply and demand,
the state of the economy and the amount of competition.
PROMOTION is the way in which a business draws attention to itself and its products.
Advertising is one of the main methods of promotion. it is used to :
-Promote existing products
-Introduce new products onto the market
-Attract new customers
-Improve the company image
-Increase the market share
There are many factor that influence the choice of advertising media and some are:
-the amount of money a company can invest in advertising;
-the size and nature of the target market;
-the product price.
Place, relates to how a business distributes its products through three distribution channels.
Manufacturers can sell:
- Directly to the consumer. the benefits of this channels to the seller include higher profits and closer contact
with the consumers.
- to a wholesaler. This channels is popular with smaller producers beacuse they benefit from the services that
wholesaler offer. Negative aspects include the fact that producers lose some of their profit and have less control
over the final outlet.
- to a retailer. This channels is popular whit large chain stores, who act both as wholesalers and retailers. the
products are broken down into smaller quantities and then delivered to stores across the country.
