6. Market analysis
Market analysis includes market segmentation,
defining market size, market trends, industrial structure, defining of strategic groups.
Market segmentation is the process of grouping a market into smaller subgroups. This is not something that is arbitrarily
imposed on society: it is derived from the recognition that the total market is often made up of sub markets (called segments).
These segments are homogeneous within (i.e. people in the segment are similar to each other in their attitudes about certain variables).
Because of this intra-group similarity, they are likely to respond somewhat similarly to a given marketing strategy. That is, they are
likely to have similar feelings about a marketing mix comprised of a given product, sold at a given price, distributed in a certain way,
and promoted in a certain way.
- homogeneity within the segment
- heterogeneity between segments
- stability of segments
- segments are measurable and identifiable
- segments are accessible and actionable
- segment is large enough to be profitable
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