Professional Documents
Culture Documents
Chapter 10
Chapter 10
Market
Market – the total number of customers, potential customers and other sellers of a
product/service
There are two types of market:
o Mass market – where there is a very large number of sales of a product
type
Advantages Disadvantages
Opportunities for growth (large Many similar products so it may not meet
sales) specific needs of all customers
Advantages Disadvantages
For example, the tie industry is a mass market, but a business that makes ties out
of crocodile skin is a niche market
Market Segmentation
Market segments – a sub-group of a market in which the consumers have similar
characteristics or preferences
A market can be segmented by:
o According to age
o Socio-Economic group – grouping people according to how much they
are paid
o Location – where people live (people that live in wet areas will buy more
waterproof clothing than those who live in dry areas)
o Gender – men and women products differ
o Lifestyle – how many children a person has, religion, habits, etc.
Benefits of market segmentation:
o Business aims all of its marketing efforts to the specific segment, making
marketing costs efficient
o Since less money is spent on marketing, more profit
o Identify a market segment whose needs are not being fully met and fill the
gap (first in market)