MARKET SECTOR a set of businesses that are buying and selling such similar goods and services that

they are in direct competition with each other. Market sectors is a qualification method which looks at the type of business and groups them based on generally accepted names. One of the most common classifications breaks the market down into 11 different market sectors. Two are generally regarded as defensive and the other nine are referred to as cyclical. These market sectors are: Cyclical Stocks Transportation Technology Health Care Financial Energy Consumer Cyclical Communication Capital Goods Basic Materials Defensive Stocks Utilities Consumer Staples

There are two important concepts with market sectors. First, by understanding the different market sectors, it is possible to find relationships between different companies. If you dont know that one company is in the health care sector and another is in the energy sector, you might compare their earnings per share and draw conclusions that dont apply. Second, understanding market sectors allows you to add valuable protection to your stock portfolio. By investing in a number of different market sectors, you can build a higher level of security for your investment. http://www.candlestickforum.com/PPF/Parameters/11_1608_/candlestick.asp MARKET DEMOGRPHIC Demographic segmentation consists of dividing the market into groups based on variables such as age, gender family size, income, occupation, education, religion, race and nationality. As you might expect, demographic segmentation variables are amongst the most popular bases for segmenting customer groups. This is partly because customer wants are closely linked to variables such as income and age. Also, for practical reasons, there is often much more data available to help with the demographic segmentation process. The main demographic segmentation variables are summarised below: Age Consumer needs and wants change with age although they may still wish to consumer the same types of product. So Marketers design, package and promote products differently to meet the wants of different age groups. Good examples include the marketing of toothpaste (contrast the branding of toothpaste for children and adults) and toys (with many age-based segments).

Gender Gender segmentation is widely used in consumer marketing. The best examples include clothing, hairdressing, magazines and toiletries and cosmetics. Income Another popular basis for segmentation. Many companies target affluent consumers with luxury goods and convenience services. Good examples include Coutts bank; Moet & Chandon champagne and Elegant Resorts - an up-market travel company. By contrast, many companies focus on marketing products that appeal directly to consumers with relatively low incomes. Examples include Aldi (a discount food retailer), Airtours holidays, and discount clothing retailers such as TK Maxx. Social class Many Marketers believe that a consumers "perceived" social class influences their preferences for cars, clothes, home furnishings, leisure activities and other products & services. There is a clear link here with income-based segmentation. Lifestyle Marketers are increasingly interested in the effect of consumer "lifestyles" on demand. Unfortunately, there are many different lifestyle categorisation systems, many of them designed by advertising and marketing agencies as a way of winning new marketing clients and campaigns! http://www.tutor2u.net/business/marketing/segmentation_bases_demographic.asp MARKET SURVEY A market survey is an important requirement for initiating any successful business. The objective of a market survey is to collect information on various aspects of the business. This survey is a tool through which we can minimize risk. After the market survey, the results must be analyzed in order to finalize a business plan. A market survey is a systematic collection, recording, analysis and interpretation of data relating to the existing or potential market for a product or services A market survey is a useful tool for contact with the market The systematic and intelligent use of this tool can reduce risks of decision making under conditions of uncertainty Through a market survey we can obtain information in the following areas: size of market pattern of demand buying habits and motives past and present trends for this or other products The following five steps in doing a market survey were also discussed in the session: Step1: Define objectives and specify information to be collected Identifying sources of information Assessing time and costs required for the survey Selecting methodology Preparing an action plan

Step 2: Select a sample Determining where to conduct the survey Determining when to conduct the survey Step 3: Prepare a questionnaire for the survey Step 4: Collect data and analyze the information obtained Step 5: Prepare a report based on data analyzed In the session, participants discussed the following ten broad areas for information collection: Market Buyers/ customers Raw materials Machinery, equipment Competitors Furniture Manpower Capital and risks Rules and regulations Marketing DEMAND PROJECTION (TREND PLOT) Trend projection method is a classical method of business forecasting. This method is essentially concerned with the study of movement of variable through time. The use of this method requires a long and reliable time series data. The trend projection method is used under the assumption that the factors responsible for the past trends in variables to be projected (e.g. sales and demand) will continue to play their part in future in the same manner and to the same extend as they did in the past in determining the magnitude and direction of the variable.

There are three (3) techniques of trend projection based on time series data.

1. Graphical Method: - under this method, annual sales data is plotted on a graph paper and a line is drawn through the plotted points. Then a free hand line is so drawn that the total distance between the line and the point is minimum. Although this method is very simple and least expensive, the projections made through this method are not very reliable. The reason is that the extension of the trend line involves subjectivity and personal bias of the analysis.

2. Fitting Trend Equation: Least square method: - Fitting trend equation is a formal technique of projecting the trend in demand. Under this method, a trend line (or curve) is fitted to the time series data with the aid of statistical techniques. The form of the trend equation that can be fitted to the time series data is determined either by plotting the sales data or by trying different forms of trend equations for the best fit. o When plotted, a time series date may show various trends. The most common types of trend equation are o 1)linear 2) exponential trends

Linear Trend: - When a time series data reveals a rising trend in sales than a straight-line trend equation of the following form is fitted. (S = A + BT ; Where S = annual sales , T = Time (in year) , A & B are constant. The parameter b given the measure of annual increase in sales)

Exponential trend:- When sales ( or any dependent variable) have increased over the past years at an increasing rate or at a constant percentage rate, than the appropriate trend equation to be used is an exponential trend equation of any of the following type ( Y = aebt , Or its semi logarithmic form -> Log y = = log a + bt; This form of trend equation is used when growth rate is constant.)

3. Double log trend equation of equation

Y = aTB Or its double logarithmic form Log y = log a + b log t This form of trend equation is used when growth rate is increasing.

Limitation The first limitations of this method arise out of the assumption that the past rate of change in the dependent variable will persist in the future too. Therefore, the forecast based on this method may be considered to be reliable only for the period during which this assumption holds. Second, this method cannot be used for short-term estimates. Also it cannot be used where trend is cyclical with sharp turning points of trough and perks.

Box Jenkins Method: - This method of forecasting is used only for short term predictions. Besides, this method is suitable for forecasting demand with only stationary time series sales data. Stationary time series data is one, which does not reveal long term trend. In other words, Box-Jenkins technique can be used only on those cases in which time-series analysis depicts monthly or seasonal variation recurring with some degree of regularity. http://www.mbanotesworld.in/2009/02/trends-projection-method.html

MARKET SHARE "Market share is the percentage of a market (defined in terms of either units or revenue) accounted for by a specific entity." In a survey of nearly 200 senior marketing managers, 67 percent responded that [1] they found the "dollar market share" metric very useful, while 61% found "unit market share" very useful. "Marketers need to be able to translate sales targets into market share because this will demonstrate whether forecasts are to be attained by growing with the market or by capturing share from competitors. The latter will almost always be more difficult to achieve. Market share is closely monitored for signs of [1] change in the competitive landscape, and it frequently drives strategic or tactical action." Increasing market share is one of the most important objectives of business. The main advantage of using market share as a measure of business performance is that it is less dependent upon macroenvironmental variables such as the state of the economy or changes in tax policy. However, increasing market share may be dangerous for makers of fungible hazardous products, particularly products sold into the United States market, where they may be subject to market share liability. http://en.wikipedia.org/wiki/Market_share The percentage of an industry or market's total sales that is earned by a particular company over a specified time period. Market share is calculated by taking the company's sales over the period and dividing it by the total sales of the industry over the same period. This metric is used to give a general idea of the size of a company to its market and its competitors. Investors look at market share increases and decreases carefully because they can be a sign of the relative competitiveness of the company's products or services. As the total market for a product or service grows, a company that is maintaining its market share is growing revenues at the same rate as the total market. A company that is growing its market share will be growing its revenues faster than its competitors. Market share increases can allow a company to achieve greater scale in its operations and improve profitability. Companies are always looking to expand their share of the market, in addition to trying to grow the size of the total market by appealing to larger demographics, lowering prices, or through advertising. This calculation is sometimes done over specific countries such as Canada market share or USmarketshare. Investors can obtain market share data from various independent sources (such as trade groups and regulatory bodies), and often from the company itself, although some industries are harder to measure with accuracy than others.

http://www.investopedia.com/terms/m/marketshare.asp#ixzz29ePSkKAp MARKET VALUE

International Valuation Standards defines market value as "the estimated amount for which a property should exchange on the date of valuation between a willing buyer and a willing seller in an arms-length transaction after proper marketing wherein the parties had each acted knowledgeably, prudently, and [2] without compulsion." Market value is a concept distinct from market price, which is the price at which one can transact, while market value is the true underlying value according to theoretical standards. The concept is most commonly invoked in inefficient markets or disequilibrium situations where prevailing market prices are not reflective of true underlying market value. For market price to equal market value, the market must be informationally efficient and rational expectations must prevail. Recently, Mocciaro Li Destri, Picone & Min (2012) have underscored the subtle but important difference between the firms capacity to create value through correct operational choices and valid strategies, on the one hand, and the epiphenomenal manifestation of variations in stockholder value on the financial markets (notably on stock markets). In this perspective, they sugest to implement new methodologies able to bring strategy back into financial performance measures. Market value is also distinct from fair value in that fair value depends on the parties involved, while market value does not. For example, IVS currently notes fair value "requires the assessment of the price that is fair between two specific parties taking into account the respective advantages or disadvantages that each will gain from the transaction. Although market value may meet these criteria, this is not necessarily always the case. Fair value is frequently used when undertaking due diligence in corporate transactions, where particular synergies between the two parties may mean that the price that is fair between them is higher than the price that might be obtainable in the wider market. In other words "special value" may be generated. market value requires this element of "special value" to be disregarded, but it forms part of the [4] assessment of fair value. Relativity of market theories Readers should realize that Market Value is not exact science, but an introduced concept from individuals and companies as a business tool. Value is subject to seller and buyer's perception and interpretation of parameters that they decide to take into consideration, while other people usually refer to their very own perceptions and interpretations of what those people think is important. Any whatever article should be explained in this context, because people pay what they want in spite of whatever advice. Local, regional, national, international? Considering that Market Price is what people agree to pay for something at a given moment at a given place, it is important to underline the importance of the time and place range wherein sellers and buyers meet. The Local and Instant Market Value of a specific item is exactly the same as the Local Market Price. And if several people want the same thing while there is not enough for everybody that wants it, Market Value and Market Price are identical. It is wrong to state that things have any stand-alone value, because value depends upon transactions.When it comes to electric equipment the best source is The Orion Blue Book or Usedprice. No transaction means zero value, whatever value estimation or selling price expectation. When a lot of popular items in a place is almost sold out, sometimes people are willing to pay more than the asking price rather than spend time and effort to get it cheaper elsewhere. Is the paid price then Market Value or Market Price? Both.
[3]

http://en.wikipedia.org/wiki/Market_value

Definition of 'Market Value' 1. The current quoted price at which investors buy or sell a share of common stock or a bond at a given time. Also known as "market price." 2. The market capitalization plus the market value of debt. Sometimes referred to as "total market value." Investopedia explains 'Market Value' Investopedia explains 'Market Value' 1. In the context of securities, market value is often different from book value because the market takes into account future growth potential. Most investors who use fundamental analysis to pick stocks look at a company's market value and then determine whether or not the market value is adequate or if it's undervalued in comparison to it's book value, net assets or some other measure.

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