Market Break-Down


Knowledge of market break-down is useful for market planning. The following are productive ways to break down the market:

  • The potential market is the set of consumers with a sufficient level of interest in a market offer. However, their interest is not enough to define a market unless they also have sufficient income and access to the product.
  • The available market is the set of consumers who have interest, income, and access to a particular offer.
  • The target market is the part of the qualified available market the company decides to pursue.
  • The penetrated market is the set of consumers who are buying the company’s product.
If the company isn’t satisfied with its current sales, it can try to attract a larger percentage of buyers from its target market. It can lower the qualifications fro potential buyers. It can expand its available market by opening distribution elsewhere or lowering its price, or it can reposition itself in the minds of its customers.   

Comments

Post a Comment

Popular posts from this blog

Value Creation

Image
Marketers of the 21st century understand that for a business to exist, there needs to be value creation and delivery to customers. This shift in marketing took place from the previous phase where companies would only create products and sell them to customers without understanding the customers' needs. Yes, this worked in the past when there were limited goods and services. But in a world full of different brands with unique products and features that satisfy various needs, customers tend to lean towards brands that meet their specific needs and wants. This makes marketing the beginning of any planning. To create value for customers, marketers follow these steps: 1. Choosing the value. This represents the assignment marketers engage in before creating the product, understanding the needs of their target market to create value for them. 2. Providing the value. Marketing must determine specific product features, prices, and distribution. 3. Communicating the value. This is done by...
Read more

Digital Marketing

Image
Digital Marketing is the process of marketing a product or service using digital technologies. The main aim of digital marketing is to reach a larger audience in a shorter amount of time and at a lower cost than traditional marketing methods. Some of the most popular digital marketing channels include: Search Engine Optimization(SEO): This is the process of optimizing a website for search engines, with the goal of improving the visibility of the site and driving more traffic to it. Advertising (Pay-Per-Click, PPC): PPC is a form of online advertising in which advertisers pay a fee every time their ad is clicked.  Social Media Marketing (SMM): SMM involves using social media platforms (such as Facebook, LinkedIn and Instagram) to promote a website or product. Email Marketing: Email marketing involves sending marketing messages (such as offers and newsletters) to a list of subscribers via email. Content Marketing: Content marketing is the process of creating and distributing high-qua...
Read more

Starbucks: Mastering the Brand Contact Process Through Internal Marketing

  Starbucks: Mastering the Brand Contact Process Through Internal Marketing When you think of Starbucks, what comes to mind? For many, it's the green mermaid logo, a cozy café environment, or the reliable taste of their favorite drinks. But behind this brand experience lies a structured brand contact process, supported by internal marketing and employee engagement to ensure that every customer interaction aligns with Starbucks’ values. This post explores how Starbucks effectively utilizes internal marketing throughout its brand contact process, the role of employee involvement, and areas where the brand could improve. Step 1: Identifying Key Brand Contacts Brand contacts are any direct or indirect interaction that customers have with a brand. For Starbucks, these include online interactions, in-store experiences, and even the way baristas greet customers. Starbucks has carefully identified touchpoints that are vital to building its brand. Through these, it emphasizes consistency in...
Read more