1. © 2004 Mark H. Hansen 1 The Market

2. © 2004 Mark H. Hansen 2 Market: A group of potential buyers with needs and wants and the purchasing power to satisfy them Industry: A group of sellers that offer a similar set of goods/services to buyers

3. The Market © 2004 Mark H. Hansen 3 People 1 – need (recognized, unrecognized, latent) 2 – ability to pay 3 – willing to buy 4 – authority to buy 5 – critical mass

4. The Market © 2004 Mark H. Hansen 4 Place -location, location, location -closely linked to target market concept

5. The Market © 2004 Mark H. Hansen 5 Economic Concept Four Economic Forces -supply -demand -competition -government intervention

6. The Market © 2004 Mark H. Hansen 6 Economic Concept Market Structures pure competition oligopoly monopoly

7. The Market © 2004 Mark H. Hansen 7 Economic Concept Competitive Levers advertising price service location

8. The Market © 2004 Mark H. Hansen 8 Market Types Consumer Markets Reseller Markets Industrial Markets Institutional Markets

9. The Market © 2004 Mark H. Hansen 9 Market Types Why does market type matter? appropriate market may vary one firm may sell in all types one product may be sold in all types

10. The Market © 2004 Mark H. Hansen 10 Undifferentiated Market assumes the market is homogeneous universal appeal (standardized) product often observe ‘image’ marketing

11. The Market © 2004 Mark H. Hansen 11 Segmented Market assumes demand differences exist attempts to satisfy different demands must identify commonalities and differences

12. The Market © 2004 Mark H. Hansen 12 Product Differentiation an attempt to appeal to demand differences tangible and intangible differences intangible differences are more difficult to imitate risk missing the desired difference