ELEMENT 2: MARKETS

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ELEMENT 2: MARKETS

‘‘Market’’ Defined

In simple terms, a market is a group of customers who have a specific unsatisfied need or want and are able to purchase a product or service to satisfy that need. For example, the market for automobiles consists of anyone older than the legal driving age with a need for transportation, access to roads, and enough money to purchase or make a payment on a car.

Markets can be broken down in numerous ways as marketers try to find distinctive groups of consumers within the total market. Market segmentation allows marketers to allocate promotional expenses to the most profitable segments within the total market and develop specific ad campaigns for each one. Segmentation produces a better match between what a marketer offers and what the consumer wants, so customers don’t have to make compromises when they purchase a product.

Market Domains Served

The served market is the portion of a market that the enterprise decides to pursue. For example, a company that manufactures video games defines the market as anyone who owns a television. The potential market is defined as households with children and a television. The available market is limited to households with children, a television, enough income to make the purchase, and a store nearby that carries the game. The served market consists of households with a television, access to a toy store, sufficient income to buy the product, and children within a specific age range.

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