Market

- Place where sellers and buyers exchange goods or services upon an agreed price.
- Any mechanism that enables buyers and sellers to strike bargains and to transact.
- Composed of people with needs to satisfy, the money to spend, the willingness to
spend, and the ability to satisfy the objectives of the seller.

Types of Market

 Markets According to Type of Institutions

1. Consumer Markets – buyers who intend to directly consume a product or
service constitute the consumer market. This market type may be classified
further into product-related groupings like “the real estate market” which
refers to the aggregate demand of house and lots.

2. Organizational Markets – type of market that constitutes buyers of products

or services whose intention is to produce another product or services.

3. International Markets – refers to all types of buyers found abroad including

consumers and organizations.

 Market According to Form

1. Primary Markets – type of market that is formed when a firm introduces a
new product class in response to latent demand or needs.

2. Secondary Markets – an offshoot of the primary market and it is formed

when customers develop specific needs or preference.

Market Segmentation
- Defined as the process of identifying the various segments of a company’s particular
market.

Advantages of Market Segmentation

1. Segmentation forces the marketer to be aware of realities in the market.

2. Segmentation provides clues in the design of products and marketing programs that will
reach the prospective customers.
3. Segmentation can help identify opportunities for new product development.
4. Segmentation can help improve the strategic allocation of marketing resources.
Segmentation Strategies

1. Concentration or single-segment
- refers to that long-term decision of the company to deal only with a particular
segment of the market.

2. Multi-segment strategy
- calls for providing products or services to two or more segments of the target
market.

The Process of Segmenting Markets

1. Identification of market segments in terms of characteristics of prospective customers
they contain.
2. Determination of whether and to what extent there are differences in the need or
benefits sought by customers in the various segments.
3. Evaluation of the present and future attractiveness of each segment.

Determine if needs
Identify market of customer in
segments various segments
are different

If yes

If no
Evaluate
potential of each
segment
Abandon idea
of
segmentation
Bases for Market Segmentation

1. Geographic Segmentation
- Dividing the market into different geographical units like nations, regions, provinces,
cities, towns, or barangays.

2. Demographic Segmentation
- Refers to dividing the market into segment on the basis of demographic variables
like age, sex, family size, family life cycle, income, occupation, education, religion,
race and nationality.

3. Psychological Segmentation
- Refers to the classification of buyers or consumers by some psychological
characteristics they possess in common.

4. Behaviour Segmentation
- Term that refers to the grouping of buyers on the basis of their knowledge, attitude,
use or response to a product.

Bases for
Segmentation

Geographic Demographic Psychographic Behavioural

- Nations - Age - Social class - Purchase

- Regions - Sex - Life Cycle occasion
- Provinces - Family size - Benefits
- Cities - Family life sought
- Towns cycle - User status
- Barangays - Income - Rate
- Occupation - Attitude
- Education toward
- Religion product
- Nationality
 Types of
Market

According to According to
type of form
institutions

Consumer Primary

Organizational Secondary

International