FEP Marketing Concept

Marketing
LEC404

Defining the Market

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Ana Brochado
November 2005

Defining the ‘market’

• An economist’s interpretation of the

ECONOMICS market is based upon all the buyers and
sellers who transact over products and
services, based upon the structure,
conduct and performance of the market.

• The marketer defines a market as a

MARKETING
collection of all the potential and actual
buyers of a product or service.

Ana Brochado
November 2005 1
FEP Marketing Concept
Marketing
LEC404

Defining the market

• A market is the set of buyers and the

industry is the set of sellers.
• The size of the market is determined by
the number of buyers who might exist
and they have 3 characteristics:
interest, income and access.

Defining the Market

• The set of all actual and potential buyers of

a product or service
MARKET

Ana Brochado
November 2005 2
FEP Marketing Concept
Marketing
LEC404

Market Concepts

Total Market

Potential Market

Available Market
These market
definitions are
Qualified Available Market a useful tool
for marketing
Target Market planning

Penetrated Market

Types of market

– Potential market
• Consumers have some stated interest in a product or service.
– Available market
• Set of consumers who have the interest, income and access to
the product or services.
– Qualified available market
• Set of consumers who have the interest, income, access and
qualifications for a particular product or service.
– Served or ‘target’ market
• Part of the qualified market that the company decides to
pursue.
– Penetrated market
• Set of consumers that have already bought a particular product
or service.

Ana Brochado
November 2005 3
FEP Marketing Concept
Marketing
LEC404

Ana Brochado
November 2005 4