Analyzing markets

A market consists of all political customers having wants who posses ability and willingness to engage in exchange to satisfy their wants.Markets can be consumer market and institutional market sarisfied.It deals with.

1. Market power :It is the capacity of the organization to influence the behavior of competitors in the market.Such organizations tend to be the leaders in their chosen market segmenents.Market power is based on market share and market growth in chosen segment.

a) Market segmentation:A market is segmented to identify similarties and different between groups of customers.Market segmentation is the process of dividing the total market into large homegenous group of customers who share similarly needs and characteristics.The variable that can be used for consumer market segmentation can be :

• Geographic :Area,topography,climate,population dencity.
• Demographic :Age,gender,education,occupation,income,religion.
• psychographic :Life,style,personality,Buying motives.
• Behavioral :Benefits,loyality,occasions,status.

Organizations should understanad and meet the needs of customers in target segement to gain market power.

2)Market share is the share in total sales of a product during a given period in a specific market.It can be refer to industry,segment or area.Maket share can be measured in three ways:

• Overall market share :It is the sales of a specific organization expressed as percentage of total market.
• Served market share :It is the sales of a specific organization expresed as percentage of the total sales in served segments.
• Relative market share :It is the sales of a specific organization expresed as a percentage of the sales of its key competotor.Relative market share is the key sources,market share and profit.IT should be more than 100%to make a market leader.

3)Market growth :Market growth is an indication of market power.Market growth refors to all round annual growth rate in sales,market share and profits.It should be analyzed in relation to key competitors.
Opportunities in the environment and unique resources and competencies provide potencial for market growth.An organization must have high rate of market growth maintain and improve its competitive position.