Race or Ethnicity Race and ethnicity are demographic factors that may or may not come into play in a marketing strategy. The of defining and subdividing a large homogenous into clearly identifiable segments having similar needs, wants, or characteristics. Rivalry between Competitors The intensity of the rivalry between competitors can determine the future viability of your target market. Buyer Bargaining Power The existence of competition in a target market creates buyer-bargaining power. Banking and Financial System In a country where there is well developed organized money credit, banking and financial system are in existence the market is widened because payments are quickly finalized.
Does it make a difference? On the other hand, if the banking and is not well developed an organized the markets Limited. Other segmentation methods have been described. Trillions of money is exchanged in markets daily for many reasons including Inflation Rates, Interest Rates, Tra … de Balances etc. Thus, All these factors play an important role in the market size and are factors to be aware of when thinking about sizing a market, As they can help guide you on the best approach to take for a given market. Market Dynamics Does market lend itself to a highly concentrated market or a more fragmented market? Competition - would affect the advertising used, pricing policy and where they sold their products in order to compete and be successful.
Explain the key elements of marketing environment? If rivalry is more intense, however, it can lower profitability for all competitors to the point that the companies could fail. Having created a model the value of each segment can be assessed. When are they doing it? In case of retail stores, geographic location of the store is one of the most important considerations. Supplier Bargaining Power The suppliers of raw materials from which you make your products may also have power over your business, particularly if you need items that are only available from a few sources. For example, in some cases only the promotional campaigns would differ. Many companies, such as Target, go after the largest category of middle-class income earners.
Strengths and Philosophies The ideal market segment is one where the needs of consumers align closely with what your company brings to the table in terms of business philosophies and values and product or service strengths. Size, population density and climate factors are traits of geographic segmentation, along with region or location. For instance, a firm may request some kind of feedback through questions specifically addressed to a certain group with the purpose of obtaining practical suggestions on how to make a product better. Your products or services may lend themselves naturally to certain customer types. In 2006, the retailer pulled out of Germany after opening eighty-five stores in six years.
Substitutes A commodity having substitutes in the market will have a limited market while no substitute commodity will be widely used and the size and extent of the market are widened. Behavioralistic Segmentation Markets can be segmented on the basis of buyer behavior. A segment is formed where customers would derive similar benefit from the product, because they share si … milar attitudes and behaviours. Customs are traditional, culturally approved ways of behaving in specific situations. Marketing includes a broad range of business activities that range from research and development to promotion and support after the sale.
They have a cultural suspicion of low prices, which create concern about quality. The optimal bases on which to segment the market depend on the particular situation and are determined by , market trends, and managerial judgment. Sampling and grading of goods Those goods which are bought and sold on the basis of the samples and grading the market will be wide while the goods not sold on the basis of samples and grading have a limited market. Most companies are forced to split the total demand into several segments and select only those that they are best equipped to handle. Probationary period that permits evaluating employees ability based upon performance. Some of the markets are large in size and their extensions in wide while other markets are very limited or narrow in size and extend.
Targeting a rural market of 10,000 customers is much different than targeting an urban market of 100,000. Market segmentation refers then to the process of defining and breaking down a wide market into clearly identifiable and homogeneous groups of consumers with similar characteristics, wants, and needs. It is because the buying behavior of consumers differ based on the geographic, demographic and psychographic factors. However, customers in some industries rely on a few major providers that already control much of the market. Buyers have the most power when the market consists of mostly small competitors, the buyers purchase in large quantities, and the same or similar products or services are available from all the suppliers at similar prices. Your local business may want to target geographic segments beyond your local marketplace, but the costs and logistics in getting your goods in front of customers in those areas may make that less attractive. Opinion leaders are people who influence others.
Entry by Competitors If the selection of your target market is accurate, you will be able to see returns in a short time because your products or services will sell well. If you have low-cost advantages in your operation, a lower-income, budget-conscious market might be your best target. Apart from playing a major role in developing new marketing efforts to attract new customers, market segmentation can also help a business to discover ways to reinforce existing customer loyalty. Currently, I am putting up a 22' x 33' 2nd floor addition. Demographics Demographics segmentation is a common strategy where you identify market segments based on shared demographic or personality qualities.
But eventually you have to move on it. If you were a car manufacturer the organisation would not concentrate on the affluent and price sensitive market if they did not have the resources to do so. Every factor, right from the domestic level, organizational level, to the global level is interrelated. Banking and Financial System In a country where there is well developed organized money credit, banking and financial system are in existence the market is widened because payments are quickly finalized. Psychographic Segmentation Psychographic Segmentation focuses on group customers according to their life-style and purchasing psychology. Government policy Domestic and foreign trade is affected by government policy relating to exports and imports, license, protection, taxes etc. There are several ways that a market can be geographically divided.