Market

What is Market???
▪ A market is a place where two parties can gather to
facilitate the exchange of goods and services.
▪ The parties involved are usually buyers and sellers.
▪ The market may be physical like a retail outlet, where
people meet face-to-face, or virtual like an online
market, where there is no direct physical contact
between buyers and sellers.
Understanding Market???
▪ Technically speaking, a market is any place where two or
more parties can meet to engage in an economic
transaction—even those that don't involve legal tender. A
market transaction may involve goods, services,
information, currency, or any combination of these that
pass from one party to another.
▪ Markets may be represented by physical locations where
transactions are made. These include retail stores and
other similar businesses that sell individual items to
wholesale markets selling goods to other distributors. Or
they may be virtual.
How Market Works???
▪ Markets are arenas in which buyers and sellers can
gather and interact.
▪ In general, only two parties are needed to make a trade,
at minimum a third party is needed to introduce
competition and bring balance to the market. As such, a
market in a state of perfect competition, among other
things, is necessarily characterized by a high number of
active buyers and sellers.
▪ The market establishes the prices for goods and other
services. These rates are determined by supply and
demand.
▪ Supply is created by the sellers
▪ Demand is generated by buyers.
How Market Work???
▪ Markets try to find some balance in price when supply
and demand are themselves in balance. But that balance
can in itself be disrupted by factors other than price
including incomes, expectations, technology, the cost of
production, and the number of buyers and sellers in the
market.
▪ Markets may emerge organically or as a means of
enabling ownership rights over goods, services, and
information. When on a national or other more specific
regional level, markets may often be categorized as
“developed” markets or “developing” markets,
depending on many factors, including income levels and
the nation or region’s openness to foreign trade.
Types of Market

▪ Markets vary widely for a number of reasons, including

the kinds of products sold, location, duration, size, and
constituency of the customer base, size, legality, and
many other factors. Aside from the two most common
markets—physical and virtual—there are other kinds of
markets where parties can gather to execute their
transactions.
▪ Black Market
▪ Auction Market
▪ Target Market
▪ Financial Market
Black Market
▪ A black market refers to an illegal market where transactions
occur without the knowledge of the government or other
regulatory agencies. Many black markets exist in order to
circumvent existing tax laws. This is why many involve cash-
only transactions or other forms of currency, making them
harder to track.

▪ Many black markets exist in countries with planned or

command economies—wherein the government controls the
production and distribution of goods and services—and in
countries that are developing.

▪ Black markets can also exist in developed economies as well.

This is prevalent when prices control the sale of certain
products or services, especially when demand is high. Ticket
scalping is one example.
Auction Market

▪ An auction market brings many people together for the sale

and purchase of specific lots of goods. The buyers or bidders
try to top each other for the purchase price. The items up for
sale end up going to the highest bidder.

▪ The most common auction markets involve livestock and

homes, or websites like eBay where bidders may bid
anonymously to win auctions.
Target Market
▪ A target market is a group of consumers or organizations most
likely to buy a company’s products or services. Because those
buyers are likely to want or need a company’s offerings, it
makes the most sense for the company to focus its marketing
efforts on reaching them. Marketing to these buyers is the
most effective and efficient approach. The alternative -
marketing to everyone - is inefficient and expensive.

▪ Demographic characteristics that are analyzed for target

marketing purposes include age, income, geographic origins
and current location, ethnicity, marital status, education,
interests, level of discretionary income, net worth, home
ownership, and a host of other factors.

▪ Target marketing allows a small business to develop a product

and a marketing mix that fit a relatively homogenous part of
the total market. By focusing its resources on a specific
customer base in this way, a small business may be able to
carve out a market niche that it can serve better than its
larger competitors.
Financial Market

▪ The blanket term financial market refers to any place where

securities, currencies, bonds, and other securities are traded
between two parties. These markets are the basis of
capitalist societies, and they provide capital formation and
liquidity for businesses. They can be physical or virtual.

Special Considerations: Regulating Markets

▪ Other than black markets, most markets are subject to rules

and regulations set by a regional or governing body that
determines the market’s nature. This may be the case when
the regulation is as wide-reaching and as widely recognized
as an international trade agreement, or as local and
temporary as a pop-up street market where vendors self-
regulate through market forces.
Key Concepts of Market

▪ There are 5 different concepts of marketing, each of

which vary in the function that they deal with. Each of
the concept was developed as per the need of the
market. As the market changed, so did the concepts of
marketing. And today, we have an opportunity to look at
all 5 concepts of marketing and what they represent.
▪ Production concept
▪ Product concept
▪ Selling concept
▪ Marketing concept
▪ Societal marketing concept
1.) Production Concept –

▪ The oldest of the concepts in

business.
▪ It holds that consumers will prefer
products that are widely available and
inexpensive.
▪ Managers focusing on this concept
concentrate on achieving high
production efficiency, low costs, and
mass distribution.
2.) Product Concept –

▪ It holds that consumers/buyers will

favor those products that offer the
most quality, performance, or
innovative features.
▪ Managers focusing on this concept
concentrate on making superior
products and improving them over
time.
3) Selling Concept –

▪ it holds that the consumers and business, if left

alone, will ordinarily not buy enough of the selling
company’s product. The organization must
therefore, undertake an aggressive selling and
promotion effort.
▪ Their aim is to sell what they make rather than
make what the market wants.
▪ During WWII world industry geared up for accelerated wartime
production. When the war was over this stimulated industrial
machine turned to producing consumer products. By the mid
50’s supply was starting to out-pace demand in many industries.
Businesses had to concentrate on ways of selling their products.

▪ In a modern marketing situation the buyer has a basket to

choose from and the customer is also fed with a high decibel of
advertising. So often there is a misconception that marketing is
all about selling.

▪ The problem with this approach is that the customer will

certainly buy the product after the persuasion and if dissatisfied
will not speak to others. In reality this does not happen and
companies pursuing this concept often fail in the business.

▪ Consumers will buy products only if the company aggressively

promotes or sells these products. Off course, in this era of
marketing, we know that selling is not the only tactic to sell
your product. You have to focus on marketing as well.
4) Marketing Concept–

▪ The marketing concept proposes that the success of the firm

depends on the marketing efforts of the company and in
delivering a better value proposition as compared to its
competitors in its own target market.

▪ The marketing concept demands that the strategic decisions

made by the company are taken keeping the customer in
mind. Especially the needs wants and demands of the
customers. A holistic approach is taken with the whole
organization striving to make the customer experience better.

▪ Applying the marketing concept also means knowing what

the market needs and expects from the company as a result
of which companies which apply the marketing concept need
to carry out more of market research.
▪ The marketing concept is the most followed ideology by top
companies. This is because, with the rise of economy,
consumers have become more knowledgeable and choosy as
a result of which the organization cannot concentrate on
what it sells but rather it has to concentrate on what the
customer wants to buy.

▪ In a modern marketing situation the buyer has a basket to

choose from and the customer is also fed with a high decibel of
advertising. So often there is a misconception that marketing is
all about selling.

▪ As we are ultimately satisfying the customer, the marketing

concept also demands that the organization integrate all its
different departments to give value to the customer. This
means that all the departments including Marketing, Finance,
HR or Operations should have an idea of the core objectives
of the company as well as the goal of the company.
How to Implement Marketing Concept???
To implement the marketing concept, you need to ask 3 basic
questions to yourself or your organization.
1) What is the target market – The first step is to determine exactly
which is the target market. This can be by market research and deciding
which target market will give the best returns.

2) What are the needs wants and demands of the target market – A
further step in marketing research is the consumer preferences study.
This study will help the firm determine the needs wants and demands of
the target market thereby helping the firm in deciding their strategies.

3) How best can we deliver a value proposition – In this step, the firm
decided what strategy it needs to adopt. The firm decides how to apply
the marketing concept within itself to deliver a better customer
experience.

To summaries, The concept of marketing relies on market

research and determining needs of the customer such that a
better marketing strategy can be devised which satisfies the
needs of the customer. The marketing concept also demands a
holistic approach from the organization.
5) Societal Marketing Concept–

▪ The societal marketing concept was an offshoot of the

marketing concept wherein an organization believes in giving
back to the society by producing better products targeted
towards society welfare.

▪ The societal marketing concept calls upon marketers to build

social and ethical considerations into their marketing
practices. They must balance and juggle the often conflicting
criteria of company profits, consumer want satisfaction, and
public interest.
Unique Selling Proposition

▪ A Unique Selling Proposition (USP) is a statement that

describes how your product or company is different (and
hopefully better) than the competition. The best USPs
take a unique quality and explain how that quality will
benefit your customers, all in a few memorable words.
Many companies past and present use USPs as their
slogans, so that they can put them in front of as many
prospective customers as possible. In fact, some of the
best slogans of the past have used unique product
qualities that no one would think were good selling
points.
A compelling USP should be:

▪ Assertive, but defensible: A specific position that forces

you to make a case against competing products is more
memorable than a generic stance, like “we sell high-quality
products.”
▪ Focused on what your customers value: “Unique” won’t
count for much if it’s not something your target customers
truly care about.
▪ More than a slogan: While a slogan is one way your USP
can be communicated, it’s also something that you can
embody in other areas of your business, from your return
policy to your supply chain. You should be able to talk the talk
and walk the walk.
It’s not necessarily what you sell that has to be unique, but the
message you choose to focus on that your competition doesn't.
Costumer Requirement

▪ Characteristics or specifications that should be present in

a product for it to be deemed desirable by the consumer.
There can be two types of customer requirements:
▪ 1. Service Requirement
▪ 2. Output Requirement
Costumer Requirements

▪ Service Requirements: Intangible aspects of purchasing a

product that a customer expects to be fulfilled. It consists of
elements like on-time delivery, service with a smile, easy-
payment etc. It encompasses all aspects of how a customer
expects to be treated while purchasing a product and how
smooth his buying process goes.

▪ Output Requirements: These are mostly the tangible

characteristics, features or specifications that a consumer
expects to be fulfilled in the product. If a consumer is availing
a service as a product, then various service requirements can
take the form of output requirements. For example, if the
consumer is hailing a metro cab, then on-time arrival becomes
an output requirement. For other products such as gadgets,
the product specifications like the loudness and clarity of a pair
of speakers becomes its output requirements.
Market Size
▪ Market size is an estimate of the market for a product
or service. Estimates of market size are used in business
planning, product development and marketing areas
such as sales planning. The following are the common
types of market size.
Types:
▪ Total Addressable Market - The total size of a market at the
industry or product category level. For example, the size of
the global market for women's formal shoes. This typically
serves as a reference for smaller firms and is potentially
relevant to the revenue estimates of large firms with
significant market share.
▪ Serviceable Available Market - The total size of the market
that you can reach with your distribution channels. For
example, the size of the market for women's formal shoes in
France.
Market Size

▪ Serviceable Obtained Market - A conservative estimate of

the percentage of the market you can realistically win given
your brand, product position, marketing capabilities,
customer base and distribution channels. For example, 6%
of the market for women's formal shoes in France.
Interview, Focus Groups Discussion & Surveys

Focus groups, interviews and surveys are referred to

as primary research tools. They help you collect new or
original information. The benefit of conducting your own
research, rather than using secondary information (e.g.
from internet sources and trade publications) is that you
can tailor your questions specifically to your business and
you can gather more in-depth information.
 7p’s of Marketing Mix
These seven are: product, price, promotion, place,
packaging, positioning and people.

▪ Product
- To begin with, develop the habit of looking at your product
as though you were an outside marketing consultant brought
in to help your company decide whether or not it's in the
right business at this time. Ask critical questions such as, "Is
your current product or service, or mix of products and
services, appropriate and suitable for the market and the
customers of today?"
 Prices
- Develop the habit of continually examining and reexamining
the prices of the products and services you sell to make sure
they're still appropriate to the realities of the current market.
Sometimes you need to lower your prices. At other times, it
may be appropriate to raise your prices. Many companies
have found that the profitability of certain products or
services doesn't justify the amount of effort and resources
that go into producing them. By raising their prices, they
may lose a percentage of their customers, but the remaining
percentage generates a profit on every sale.

 Promotion
- Promotion includes all the ways you tell your customers about
your products or services and how you then market and sell to
them.

- Small changes in the way you promote and sell your products
can lead to dramatic changes in your results. Even small
changes in your advertising can lead immediately to higher
sales. Experienced copywriters can often increase the response
rate from advertising by 500 percent by simply changing the
headline on an advertisement.
 Place
- Develop the habit of reviewing and reflecting upon the exact
location where the customer meets the salesperson. Sometimes
a change in place can lead to a rapid increase in sales.

- You can sell your product in many different places. Some

companies use direct selling, sending their salespeople out to
personally meet and talk with the prospect. Some sell by
telemarketing. Some sell through catalogs or mail order. Some
sell at trade shows or in retail establishments. Some sell in joint
ventures with other similar products or services. Some
companies use manufacturers' representatives or distributors.
Many companies use a combination of one or more of these
methods.

 Packaging
- Develop the habit of standing back and looking at every visual
element in the packaging of your product or service through the
eyes of a critical prospect. Remember, people form their first
impression about you within the first 30 seconds of seeing you
or some element of your company. Small improvements in the
packaging or external appearance of your product or service can
often lead to completely different reactions from your
customers.
 Positioning
- You should develop the habit of thinking continually about how
you are positioned in the hearts and minds of your customers.
How do people think and talk about you when you're not
present? How do people think and talk about your company?
What positioning do you have in your market, in terms of the
specific words people use when they describe you and your
offerings to others?

- If you could create the ideal impression in the hearts and

minds of your customers, what would it be? What would you
have to do in every customer interaction to get your customers
to think and talk about in that specific way? What changes do
you need to make in the way interact with customers today in
order to be seen as the very best choice for your customers of
tomorrow?
 People
- Develop the habit of thinking in terms of the people inside
and outside of your business who are responsible for every
element of your sales, marketing strategies, and activities.

- To be successful in business, you must develop the habit of

thinking in terms of exactly who is going to carry out each
task and responsibility. In many cases, it's not possible to
move forward until you can attract and put the right person
into the right position. Many of the best business plans ever
developed sit on shelves today because the [people who
created them] could not find the key people who could
execute those plans.
 How to Develop a Brand Name?
If you are ready to brand yourself or your business, you need to have
a clear understanding of what developing a brand actually involves
before you really get started. Your brand-development process should
always follow these major steps:
1. Decide what you’re going to brand.

2. Do your research.

3. Position your product or service.

4. Write your brand definition.

5. Develop your name, logo, and tagline.

6. Launch your brand.

7. Manage, leverage, and protect your brand.

8. Realign your brand to keep it current.

 Players in the Market
There are often a number of different types of company or people
playing in any marketplace.
1. Costumers (Minors and Majors)

2. Suppliers

3. Complementors

4. Competitors

5. Substitutors

6. Regulators
7. Influencers
Products and Services Available in
the Market
The types of goods and services in today’s market are: convenience
goods, shopping goods and specialty goods.
1. Convenience Goods
▪ Staples
▪ Impulse Goods
▪ Emergency Goods

2. Shopping Goods
▪ Attribute- based shopping Goods
▪ Price-based shopping Goods

3. Specialty Goods
▪ Rented-Goods Services
▪ Owned-Go0ds Services
▪ Non-Goods