London College of business and information technology
Post graduate diploma in business management
Word limit- 3000
Portions of market and market segmentation
The term market is often means different to different people. There are many usages of the term in economics and in business in general. A market is a place where buyers and sellers meet, where goods are offered for sale and where transfer of ownership takes place. In any market following three things are considered
* people with needs
* their purchasing power
* their buying behaviour
Market is thus a place where their needs are satisfied, they willing to spend money. The overall market is divided into distinct groups of buyers, who are likely to respond favourably to different product service offerings and marketing mixes. The firm determines the most appropriate basis for segmentation identifies the important characteristics of each market and develops criteria for evaluating their commercial attractiveness and viability. In the business there are different portions of the markets depending on the need of the customers that is further discussed under the segmentation. Market has different types portions depending upon the criteria used to separate them. As each need and preference of the customer is different, so according to that market portions are different. Like a supermarket, it is differentiated into further smaller portions based on the products they are selling. So depending upon the different criteria, the market portions are different from each other.
the growth of the specialized market segments has resulted in firms producing goods and services that are more closely related to the requirement of particular kinds of customers.
Market segmentation is known as the identification of the market portions that are different from each other’s group of the people having...