2. Marketing is the process of
identifying, anticipating and satisfying the
needs and wants of customers’ in a way that
delights the consumer and also meets the
needs of the organisation.
3. What is a market?
A market is a place where buyers and
sellers come together.
4. How can we measure a market?
Market size: the volume of sales of a product (e.g. the
number of computers sold) or the value of sales of a product
(e.g. the total revenue from the computer sales).
Market growth: the percentage change in sales (volume
or value) over a period of time.
Market share: the percentage or proportion of the total
sales of a product or service achieved by a firm or a specific
brand of a product.
5. Analysing the market
Quantitative analysis examines statistical
information in order to draw conclusions about
the nature of the market (e.g. How much growth
is there in a market? Who is the market
leader?).
Qualitative analysis considers the reasons why
certain actions take place.
6. Market Segmentation
Market segmentation is the classification of customers or
potential customers into groups or sub-groups (market
segments) each of which responds differently to different
products or marketing approaches.
Segmentation analysis is where a firm uses quantitative and
qualitative data or information to try to discover the type of
consumer who buys its products and why.
7. Types of segmentation
• Age
• Gender (sex)
• Social class
• Lifestyle
• Geographic
• Usage/frequency of purchase
• Residential (e.g. ACORN)
8. Reasons for segmentation
• To increase market share
• To assist new product development
• To extend products into new markets
• To identify ways of marketing a product
