The paper "Services Marketing Is Different" is a great example of an assignment on marketing. Q1 (a) A market comprises an entity involved in buying, selling and goods and services distribution to reach the target persons or groups. On the requirement of a market, it demands the presence of many buyers to help in determining prices based on supply and demand. A market also demands the presence of many sellers. Markets should have homogenous goods with no competing alternatives so that the product being sold remains the same in quality, size and other features.
It is convenient for sellers and their buyers to have adequate information about their market to remove the chances of rumors and misjudgments about the goods and services being sold. The market should have minimal bottlenecks of entry and exit. In this locality, many consumers like college students prefer to take away French fries and burgers, Muslims cherish Masala chicken while long-distance truck drivers like Guinness. This market is untapped and considerable potential for the company to sell in large quantities. The company should create a distribution system to provide these products to the target consumers at favorable pricing at the opportune time.
These groups so far live on the substitutes which are unreliable. Q2.b) Market segmentation refers to classifying consumers and analyzing their behavior according to their attitudes, lifestyle, needs, age, gender, and incomes. Segmentation helps marketers to maximize their return on investment through marketing activity. It is easier to understand the market composition and also assist in communicating with the target segments more effectively. Psychographic segmentation classifies buyers according to their socioeconomic status, personality features, and lifestyle.
In socio-economic, it considers variables like occupation, and educational level of household heads, income, and social standing. It strongly affects habits, activities, and preferences. Companies thus design products to meet the needs of particular socio-economic classes. Buyers express lifestyle in goods like frozen food for singles and healthy bacteria cultured food for young consumers. Personalities in advertising have influenced many products from cosmetics, insurance to alcoholic beverages. In behavioral segmentation, knowledge and attitude govern use and response to the product. This segment places product to use during the day like milk over breakfast.
The benefits of the product give the user economic, cosmetic, and protective and taste like the case of toothpaste. In addition, the market comprises users at every point of use like past, regular and potential users. Other factors in behavioral segmentation are usage rate, loyalty status, buyer reading stage, and attitude. b) The basic information to segment markets is the geographic unit like regions, cities, neighborhoods. The other is demographics which include are sex, family size, education, and age. Primary research is beneficial in gathering information regarding the buyers and their attributes.