MARKET IDENTIFICATION AND ANALYSIS Flashcards
Is a gathering place for consumers and sellers where they can exchange goods and services.
Market
[Enumeration] Markets might be real-world, like a physical store, or digital, like an online merchant. Give the three examples of market.
- black market
- auction market
- financial market
[Enumeration] Two parties involved in a transaction.
- Seller
- Buyer
In exchange for payment, the ________ provides the customer with goods and services.
Seller
[Enumeration] The market determines the prices for goods and other services regardless of the situation. These two dictate the rates.
Supply and Demand
For the market to be competitive, there must be ___________ buyer and seller
more than one
A ___________ can entail the transfer of commodities, services, information, money, or any combination of these to another party.
market transaction
_________ are places where buyers and sellers can come together and conduct business.
Markets
In general, a ________ is required at the very least to promote competition and bring balance to the market, even if only two parties are required to make a trade.
third party
As a result, among other things, a market in a condition of perfect __________ is required to be characterized by a large number of active buyers and sellers.
competition
_________ is produced by buyers, but _________is produced by sellers.
Demand; supply
When supply and demand are balanced, markets attempt to achieve some level of _____________.
price equilibrium
[Enumeration] 5 Elements that throw off the equilibrium aside from price.
- Incomes
- Expectations
- Technology
- Production costs
- Quantity of consumers and sellers
[Enumeration] 6 Types of Market
- Physical Markets
- Virtual/Non-physical Market
- Auction Market
- Black Market
- Financial Market
- Market for Intermediate Goods
Is a place where buyers and sellers may interact in person and exchange money for the desired goods. These include places like shopping centers, department stores, and retail stores.
Physical Markets
Customers in these markets make online purchases of goods and services. In such a market, buyers and sellers do not physically meet or interact; rather, the transaction is completed online. Examples are eBay and Rediff Shopping.
Virtual/Non-physical Market
Several people come together at an auction market to buy and sell lots of products. For the purchasing price, the purchasers or bidders compete with one another. The highest bidder ultimately wins the items up for sale.
Auction Market
An illicit exchange or marketplace where deals are made without the knowledge or supervision of authorities or regulatory bodies is referred to as
Black Market
Any location where bonds, currencies, and other securities are traded between two
parties is referred to as a “_________” in the broadest sense.
Financial Market
These markets, which offer capital formation and liquidity for firms, are the cornerstone of capitalist societies. There are both real and virtual ones. The stock exchanges including the New York Stock Exchange, Nasdaq, the LSE, and the TMX Group are a part of this.
Financial Market
These markets offer the things that are used as raw materials in the manufacture of other products.
Market for Intermediate Goods
While creating a new product or service or entering a new market outlet, it is crucial for any firm to identify their core consumer group, also known as the ____________
target market
Knowing the _________ is beneficial for the creation of products as well as for the execution of marketing strategies and the choice of suitable sales channels.
target market
[Enumeration] 3 main information for consumer’s demographics.
- Age
- Income
- Level of Education
[Enumeration] Businesses can define their target market using a variety of techniques. These 4 are examples of primary research methodologies.
- Consumer surveys
- Pricing experiments
- In-person interviews
- Focus groups
The more clearly a company defines its target market, the better equipped it will be to provide a worthwhile product and carry out an effective _________ and _________.
promotion; marketing plan
The target market’s interests, goals, and pastimes are included in the _____________.
psychographics
According to _______, knowing a product’s target market’s particular requirements or preferences, such as whether it is organic, free-range, or fair-trade, is also crucial.
Kelley
[Enumeration] 4 benefits of finding a target market
- More Effective Marketing Mix
- Helps you choose the right Marketing Channels
- Uses limited time, money, and resources more efficiently
- Maximizes Sales and Profits
You may better fulfill your clients’ wants and preferences by customizing the product, price, and distribution methods if you are aware of who your target market is.
More Effective Marketing Mix
With a target market in mind, you can promote your products or services to customers where they are, be it by posting on a given social media platform or placing ads in a part of town where people in your target market regularly frequent.
Helps you choose the right Marketing Channels
Promoting to a narrower target market as opposed to the overall market allows you to allocate your hours and dollars more efficiently to the people who are most likely to need or want to buy from you.
Uses limited time, money, and resources more efficiently
All of the elements can increase your marketing mix’s attractiveness and reach, which can increase sales volume and boost your bottom line.
Maximizes Sales and Profits
It is an undifferentiated marketing strategy in which the organization decides to ignore niche marketing, market segments and attempts to appeal to the entire market with one strategy or one offer.
Mass Marketing
_______ is a strategy designed to attract a large portion of the audience.
Mass marketing
Mass marketing is marketing strategy focuses on a ______ volume of sales at ______ prices in order to gain maximum exposure for the product.
higher; lower
Mass marketing does not have to be niche-specific as long as the _________ is identified as the primary target of the advertising campaign.
target audience
________________, such as billboards, commercials, or skywriting, are widely used to reach a larger demographic of people (people who are not necessarily part of the target audience) and increase sales.
Blanket advertisements
________ is inclined more towards Offline media or traditional marketing. Whereas, __________ is lent towards the digital platform or digital marketing.
Mass marketing; niche marketing
According to __________, for a successful mass marketing campaign, the advertisement must be focused on “set of product needs that are common to most consumers in a target market.”
Bennett & Strydom
[Enumeration] Traditionally, mass marketing focuses on these 4 media:
- Social media
- Television / Radio
- Newspapers
- Magazines and email marketing
A major advantage of advertising and selling to the mass market is the ________ as well as the _________ of operating on a larger scale.
scope; cost efficiency
This conjunction of _________ and __________ has the ability to create a barrier to entry into the market which can discourage both competitors and competition.
strong brand image; cost leadership
A growing number of consumers are dissatisfied with the “__________” approach and are looking for more specialized products than those available through mass marketing.
one size fits all
Another disadvantage of mass marketing is the impact of ______ and ________ on how customers perceive advertising messages. A mass marketing campaign in one region may be successful while failing to make an impression on consumers in another.
culture; location
Despite its potential to generate high volumes of sales, this strategy frequently yields a lower return on investment than other strategies due to the _____________.
high cost of mass market efforts
It is the process of dividing a target market into smaller groups with similar characteristics, such as age, income, personality traits, behavior, interests, needs, or location.
Market segmentation
___________ enables brands to develop strategies for various types of consumers based on how they perceive the overall value of specific products and services. They can then send a more personalized message with confidence that it will be received successfully.
Segmentation
____________ enables you to target your content to the right people in the right way, rather than a generic message to your entire audience. This increases the likelihood of people engaging with your advertisement or content, resulting in more efficient campaigns and a higher return on investment (ROI).
Market segmentation
[Enumeration] 4 MAIN types of market segmentation.
- Demographic Segmentation
- Behavioral Segmentation
- Geographic Segmentation
- Psychographic Segmentation
It refers to segmenting audiences based on observable, person-based differences.
Demographic Segmentation
[Enumeration] 10 qualities considered under demographic segmentation.
- Age
- Sex
- Marital status
- Family size
- Occupation
- Education level
- Income
- Race
- Nationality
- Religion
You can also segment your market based on consumer behaviors, particularly those related to your product. By segmenting your audience based on the behaviors they exhibit, you can create messaging that caters to those behaviors.
Behavioral Segmentation
[Enumeration] 5 behaviors to consider under behavioral segmentation.
- Online shopping habits
- Website actions
- Benefits sought
- Usage rate
- Loyalty
_____________ is valuable because it directly relates to how people interact with your brand or products. As a result, it can help you market to them more effectively. This information can be gathered from a variety of sources, including cookies placed on your website, purchase data in your customer relationship management (CRM) software, and third-party datasets.
Behavioral data
____________, which divides your market based on their location, is a simple but effective segmentation strategy. The location of a customer can help you better understand their needs and send out location-specific ads.
Geographic segmentation
[Enumeration] 4 fundamental details of users under geographical segmentation.
- Country
- Size
- City
- Zip Code
This is similar to demographic segmentation, but it focuses on mental and emotional characteristics. These characteristics may not be as obvious as demographics, but they can provide valuable insight into your audience’s motivations, preferences, and needs.
Psychographic Segmentation
[Enumeration] 6 examples of psychographic characteristics under psychographic segmentation.
- Personality traits
- Interests
- Beliefs
- Values
- Attitudes
- Lifestyles
While _________ provide basic information about your target audience, __________ provide insight into why people choose to buy or not buy your product, click on or ignore your ad, and otherwise interact with you.
demographics; psychographics
[Enumeration] 5 other methods of market segmentation.
- Value Segmentation
- Firmographic Segmentation
- Generational Segmentation
- Lifestage Segmentation
- Seasonal Segmentation
Some businesses will split up a market based on the “transactional worth” of their customers — how much they’re likely to spend on their products. To determine a customer’s transactional worth, you can look at previous purchase data such as how many purchases they make, how often they make purchases and the value of the items they purchase.
Value Segmentation
Business-to-business (B2B) companies may use ______________ to divide up the businesses in a market. This is similar to demographic segmentation with individual consumers but instead looks at the characteristics of companies that may become customers.
Firmographic Segmentation
Businesses may segment consumers by generation and group them into categories that include Gen Z, Millenials, Generation X, Baby Boomers and the Silent Generation. These generations are believed to share certain preferences, behaviors, personality traits and beliefs.
Generational Segmentations
You can also segment your market into groups based on where they are in their lives. Going to college, getting married and having children are examples of key life events to consider. People at different stages of life need different things.
Lifestage Segmentation
Like how people buy different products in different periods of their lives, people also buy different items at different times of the year. Major holidays such as Christmas and Hanukkah also significantly impact purchasing behaviors.
Seasonal Segmentation
[Enumeration] 8 Advantages of Market Segmentation.
- Create stronger marketing messages
- Find the ideal marketing strategies
- Design targeted advertising
- Attract potential customers
- Differentiate your brand from the competition
- Identify your niche market
- Focus your efforts
- Create a customer connection
[Enumeration] 3 Disdvantages of Market Segmentation.
- Increase a Company’s Rising Costs
- Production Problems
- Unprofitable Goal
It is a detailed investigation of a specific market within an industry, including market size, critical success factors, distribution methods, target audience, profitability and growth rate, and market trends.
Market Analysis
___________ seeks to examine and comprehend market circumstances, trends, and competition in order to make sound business decisions.
Market analysis
[Enumeration] 4 Goals of Market Analysis.
- Attractiveness of the market
- New business opportunities
- Under the mind of a customer
- Understanding dynamics of the market
Market analysis may help businesses build business plans and acquire a better understanding of the market size, growth rate of the market, market profitability, industry cost structure, distribution channel, market trends, and key success factors. Businesses can use analysis to make informed decisions, find opportunities, and develop strategies to meet their goals and objectives.
Dimensions of Market Analysis
[Enumeration] 7 dimensions of market analysis.
- Market size
- Market growth rate
- Market profitability
- Industry cost structure
- Distribution channel
- Market trends
- Key success factors
Assessing this (and its growth potential) for a company’s products and/or services is an essential step in establishing if their products and/or services have the potential to rise in sales.
Market Size
The _________ and _________ determine market size.
volume; potential of the market
The _________ represents the overall realized sales volume of a specific market.
market volume
___________ is the expansion of a market’s size, value, or volume over time. It denotes the expansion and vitality of a business or economy.
Market Growth Rate
[Enumeration] 4 factors that might lead to market expansion.
- Population growth
- Technological advancements
- Rising consumer spending
- Innovation
The goal of examining this is to determine whether the economy or company is progressing.
market growth
Market growth can also be influenced by macroeconomic factors such as economic growth and __________.
inflation
The ___________ formula is another method for calculating market expansion.
absolute growth rate
[Enumeration] 5 various strategies to boost a firm or industry’s market presence.
- Expand into new markets
- Expand market share
- Launch new products or services
- Increase customer loyalty
- Invest in Technology
____________ refers to a company’s or business’s ability to earn income in excess of its expenses. It is typically measured using ratios such as gross profit margin, net profit margin, and so on.
Profitability
A greater _______ indicates that the company is performing successfully.
ratio
Business owners and investment analysts utilize __________ to assess whether or not to invest, taking into account current and future growth.
profitability
The ratio of gross profit to sales means the entity can recover its cost of production from the revenue it is earning. Therefore, the higher the percentage, the better it is.
Gross Profit Margin
The ratio of net profit to sales.
Net Profit Margin
___________ is the profit earned after reducing operational costs, depreciation, and dividend from gross profit.
Net profit
The percentage of earnings to sales before interest expense and income taxes. A higher margin means companies are well equipped to pay for their fixed and operational costs. It also indicates efficient management and their ability to survive in economic downtime compared to their competitors.
Operation Profit Margin
Its earnings before interest, tax, depreciation, and amortization.
EBITDA
___________ is commonly used to compare a company’s performance with others and is widely used in valuation and project financing.
EBITDA
This is a significant factor while running a business. It basically sees how much cost is required to get your products for sale. Sometimes firms can come up with ways to decrease that cost and thereby make a bigger profit without increasing the market price. Doing a marketing analysis will help you to come up with newer ways to reduce cost. At the same time, it helps to create strategies for developing competitive advantage of your rivals.
Industry Cost Structure
The cost structure is important for identifying key factors for success. To this end, _____________ is useful for determining where value is added and for isolating the costs.
Porter’s value chain model
Understanding how your company creates value, and looking for ways to add more value, are critical elements in developing a competitive strategy. __________ discussed this in his influential 1985 book entitled “____________,” in which he first introduced the concept of the value chain.
Michael Porter; “Competitive Advantage”
A __________ is a set of activities that an organization carries out to create value for its customers.
value chain
[Enumeration] 5 primary activities according to Porter’s value chain.
- Inbound Logistics
- Operations
- Outbound Logistics
- Marketing & Sales
- Service
[Enumeration] 4 support activities according to Porter’s value chain.
- Firm Infrastructure
- Human Resource Management
- Technology Development
- Procurement
These relate directly to the physical creation, sale, maintenance and support of a product or service.
Primary activities
These are all the processes related to receiving, storing, and distributing inputs internally. Your supplier relationships are a key factor in creating value here.
Inbound Logistics
These are the transformation activities that change inputs into outputs that are sold to customers. Here, your operational systems create value.
Operations
These activities deliver your product or service to your customer. These are things like collection, storage, and distribution systems, and they may be internal or external to your organization.
Outbound Logistics
These are the processes you use to persuade clients to purchase from you instead of your competitors. The benefits you offer, and how well you communicate them, are sources of value here.
Marketing and Sales
These are the activities related to maintaining the value of your product or service to your customers once it’s been purchased.
Service
This is what the organization does to get the resources it needs to operate. This includes finding vendors and negotiating the best prices.
Procurement (purchasing)
This is how well a company recruits, hires, trains, motivates, rewards, and retains its workers.
Human Resource Management
These activities relate to managing and processing information, as well as protecting a company’s knowledge base. Minimizing information technology costs, staying current with technological advances, and maintaining technical excellence are sources of value creation.
Technological Development
These are a company’s support systems, and the functions that allow it to maintain daily operations.
Infrastructure
A set of middlemen or intermediaries who help an organization in the flow of goods and services from the manufacturers to the consumers are known as:
Channels of Distribution / Distribution Channel
The two types of channels of distribution or distribution level are __________ and __________.
Direct Channel; Indirect Channel
A ________ or ________ is a distribution level through which an organization directly sells its products to the customers without the involvement of any intermediary.
direct channel or zero level
When a middleman or intermediary is involved in the distribution process, it means the organisation is using:
Indirect Channels of Distribution
[Enumeration] 3 categories of indirect channels of distribution.
- One-Level Channel
- Two-Level Channel
- Three-Level Channel
____________ means that there is only one intermediary involved between the manufacturer and the customer to sell the goods.
One-Level Channel
In one-level channel, intermediary is known as a ___________.
retailer
In simple terms, under ___________, the organizations supply their products to the retailers who sell them to the customers directly. For example, goods like clothes, shoes, accessories, etc., are sold by companies with the help of a retailer.
One-Level Channel
A most used channel of distribution that involves two intermediaries for the sale of products is known as:
Two-Level Channel
In two-level channel, the intermediaries involved are _________ and ________.
wholesalers and retailers
The producer sells their products to wholesalers in bulk quantity, who sells them to small retailers, who ultimately supply the products to the customers.
Two-Level Channel
This means that there are three intermediaries involved between the manufacturer and the customer for the sale of products.
Three-Level Channel
In three-level channel, the intermediaries involved are _________, _________, and ________.
agent distribution. wholesalers, and retailers
It is usually used when the goods are distributed across the country and for that different distributors are appointed for different areas.
Three-Level Channel
__________ facilitate in reaching the products to the end-users on real time basis.
Distribution channels
[Enumeration] 3 of the distributions systems, which organizations need to consider while doing market analysis are as under:
- Understanding of the Existing Distribution Channels
- Trends and Emerging Channels
- Power Structure of Channels
These are a significant part of the marketing analysis. Having knowledge about the trends help you to decide what kind of product you are going to sell.
Market Trends
[Enumeration] 6 factors that you need to know about market products.
- Types and properties of goods
- Quantity and quality of goods
- The color and size of the items
- Brand and price of goods
- Design and model of goods
- Industrial and consumption goods
_____________ (also known as competitive emphasis or strategic posture) state the important elements required for a company to compete in its target markets.
Key Success Factors
Identifying this helps an organization focus on existing strengths that have contributed to success and seize opportunities that can give it a competitive advantage.
Key Success Factors
[Enumeration] 4 factors under Key Success Factors.
- Accessibility to essential and unique resources
- Competence to reach economies of scale
- Accessibility to channels of distribution
- Accessibility to the state-of-the-art technology
