Market Shares Not to be confused with the stock market, although there are connections

What is a market? MARKETERS KNOW THAT THEIR PRODUCT OR SERVICE CANNOT APPEAL TO EVERYONE. TO DO THEIR JOB, THEY LOOK FOR PEOPLE WHO MIGHT HAVE INTEREST IN OR NEED FOR THEIR PRODUCT/SERVICE. THEY ALSO LOOK AT PEOPLE WHO HAVE THE ABILITY TO PAY FOR THEIR PRODUCT/SERVICE. ALL PEOPLE WHO SHARE Similar needs and wants and who have the ability to purchase a given product are called a Market. Note: you must be able to afford the product as well as wanting it to be a part of the market.

There are different types of markets There are different types of markets. A market can be described as a consumer market or an industrial

Consumer Market The Consumer consists of consumers who purchase good and services for personal use. Consumers’ needs and wants generally fall into a few categories that address their lifestyles. For the most part, consumers are interested in products that will: Save them money Maker their lives easier Improve their appearance Create status in the community Or provide satisifaction

Industrial market The industrial market or business market includes all businesses that buy products for their use in their operations. The goals and objectives of business firms are somewhat different from those in the consumer market. Most relate to improving profits. Companies want to improve: Productivity Increase sales Decrease expenses Make their work more efficient

Market Categories & Shares A market is further described by the total sales in a product category. (Examples: video games, ice cream, cola, computers, cars, etc.) a company’s market share is its percentage of the total sales volume generated by all the companies that compete in a given market. Knowing one’s market share helps marketers analyze their competition and their status in a given market. Market shares change all the time as new competitors enter the market and as the size of the market increases or decreases in volume.

Target market & Market Shares Businesses know they cannot convince everyone to buy their product or service. They look for ways to offer their product or service to people who are the most likely to be interested. This involves segmenting, or breaking down the market into smaller groups that have similar needs. Identifying the group of people most likely to purchase your product or service is your target market. A product may have more than one target market.

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Target continued The children are the Consumers because they will be using the product and the parents are the customers because they will be purchasing the product. To develop a clear picture of their target market, businesses create a Customer/consumer profile. A Customer profile lists information about the target market, such as Demographics, geographic location, psychographics