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Showing posts with the label Marketing

Market Segmentation

Market segmentation can be the defined as the process of dividing a market into distinct sunsets of consumers with common needs or characteristics and selecting one or more segments to target with a distinct marketing mix. The strategy of segmentation allows producers to avoid head on competition  in the marketplace by differentiating their offerings, not only of  price but also through styling, packaging promotional appeal, method of distribution and superior service.     Marketers have found that the costs of consumer segmentation research, shorter production runs and differentiated promotional campaigns are usually more than offset by increased sales. In most cases, consumers readily accept the passed-through cost increased for products that more closely satisfy their specific needs. In most cases Market segmentation in just the first step in a three phase marketing strategy.   After segmenting the market into homogeneous clusters the marketer then must select one or more segment t

Functions of Marketing

On the basis of functional approach classification of the marketing activities can be made in the following manner. A.  Exchange  Function The function involves three activities, I.e. Buying, Assembling and Selling. ➤ 1. Buying and Assembling Buying  is the one part of exchange process, other being the selling. Buying is the first step in the process of marketing. A manufacturer has to buy raw materials for production; a wholesaler has to buy goods to sell them to the retailer, a retailer has to buy goods to be sold to the consumer. Buying involves transfer of ownership of goods. Assembling means creation and maintenance of the stock of goods, purchased from different sources. The goods have sometimes to be collected and assembled at one place. This is generally done by middlemen. Buying and assembling are two distinct processes. Both these processes involve elements such as kind, quality, price, date of delivery and other terms and conditions. All these require specialized k

Various Steps in Buying Process

Before discussing the buying process, it is important to recognize that various buying situations will have an influence on this process. First of all, consumers are likely to display various  levels of commitment, depending on the nature of the purchase. It has been suggested that there are three such levels.                     1. Extended problem solving In this situation,such as the decision to take a long-haul holiday, the consumer is likely to have a deep level of commitment, to make a detailed search for information, and to make an extensive comparison of the alternatives.           2. Limited problem solving In this situation, the consumer will have some degree of knowledge or experience already, but many factors will be taken for granted and the information search will be far more limited. A Second holiday at a favorite skiing destination maybe purchased in this way.     3. Habitual problem solving This is repeat purchase of a tried and tested short break or day excu

Explain the scope,need and benefit of market segmentation

Market was defined as the place or areas in which buyers and sellers functions. Marketing is a exchange process. The products are matched with markets.A marketers and products are the twin factors on which all marketing process are based nothing happen in our economy, unless and until some body sales nothing. Hence selling is very essential and for selling markets is essential. Market is the aggregate demands for the potential buyers of commodity or services.                        The process of subdividing market is called as market segmentation.The term segmentation is the use to sub-divide the market or customers of the product in order to capture more sale effectively and efficiently. Even for product line having a similar needs of different need of market segments.     "Market segmentation is the subdividing of a market into distinct subsets of customers, he any subset may conceivably be selected as a market target to be reached with a distinct marketing mix''.