UNDERSTANDING THE MARKET Flashcards
A environment in which two or more parties participate in the exchange of goods, services, and information
Market
The two parties involved in a transaction are
seller and buyer
refers to a process of bifurcating or dividing a large unit into various small units
Segmentation
is a marketing term dividing the entire market into smaller subsets of customers with specific tastes, demands and expectations.
market segment
Marketers are separating the market into smaller, gender-based divisions.
Basis of Market Segmentation Gender
Division based on age group of the target audience is also one of the ways of market segmentation.
Age group
Toys, Nappies, Baby Food, Prams
Age group (0 -10 years)
Toys, Apparels, Books, School Bags
Age Group (10 -20 years)
Cosmetics, Anti-Ageing Products, Magazines, apparels etc.
Age group (20 years and above)
Marketers divide the consumers into small segments as per their income. Individuals are classified into segments according to their monthly earnings.
Income
The three categories are:
High income Group
Mid Income Group
Low Income Group
Types of Market Segmentation
Psychographic segmentation
Behavioral Segmentation
Geographic Segmentation
Individual behaviors are the basis for such segmentation.
Psychographic segmentation
Consumers’ loyalties to a brand help advertisers divide them into smaller groups, each category consisting of individuals loyal to a brand.
Behavioral Segmentation
refers to the classification of market into various geographical area.
Geographic Segmentation
