Market structure, marketing mix and market segmentation, classification and characteristics of agricultural markets

1. Lec 2

2. Market structure
• The term structure refers to
something that has organization
and dimension – shape, size and
design; and which is evolved for
the purpose of performing a
function.

3. 1. Market structure refers to those organizational characteristics of a market
which influence the nature of competition and pricing, and affect the
conduct of business firms;
2. Market structure refers to those characteristics of the market which affect
the traders behaviour and their performances;
3. Market structure is the formal organization of the functional activity of a
marketing institution.
Market structure

4. COMPONENTS OF A MARKET STRUCTURE
1. Concentration of market power
2. Degree of product differentiation
3. Conditions for entry of firms in the market
4. Flow of market information
5. Degree of integration

6. Dynamics of Market Structure – Conduct and
performance
• The market structure determines the market conduct and performance.
• The term market conduct refers to the patterns of behaviour of firms,
especially in relation to pricing and their practices in adapting and
adjusting to the market in which they function.

7. Market Conduct
(a) Market sharing and price setting policies;
(b) Policies aimed at coercing rivals; and
(c) Policies towards setting the quality of products.

8. Market Performance
• The term market performance refers to the economic results that flow
from the industry as each firm pursues its particular line of conduct.
1. Production pattern
2. Demand pattern
3. Costs and patterns of marketing functions
4. Technological change in Industry

9. Marketing mix
• The marketing mix connects the way in which a firm or industry
combines its pricing, promotional and distribution stratergies which
appeal the consumers.
4 Elements of Marketing mix:
1. Product
2. Place
3. Price
4. Promotion

10. Market Segmentation
• The marketing technique of developing separate products and marketing
programmes to appear to different consumer classes is called market
segmentation.

11. Market Segmentation
• Markets are in a better position to locate and compare marketing
opportunities.
• Markets can effectively formulate and implement marketing programmes
which will be tuned with the demand of the particular segment of the
market.
• Marketers can make finer adjustments in their products and marketing
communication.
• Marketers can avoid fierce competition by assessing the strength and
weakness of the competitors.
• It leads to a more effective utilization of marketing resources.

12. Types of Market Segmentation
• Demographic segmentation
• Psychographic segmentation
• Behavioral segmentation
• Geographic segmentation