The Market Is Defined to Include Two Key Areas
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The market is defined to include two key areas.
A market is a particular group of people or organization that have wants and needs that may be partially satisfied through a marketing exchange.
A market is a potential that exists for a mutually satisfying exchange between producers of want-satisfying products and the buyer or users of such products.
Its about knowing the potential range of customers that helps you to develop your overall promotional strategy. To know your customer is to understand their characteristics which will help you to develop your sales strategy.
Key areas that need to be highlighted in this section are:
What market you will be serving?
Size, life cycle, geographical location, age, sex, income level, what they buy, where they buy, why.
Competitors?
Who are they, how you rank against them, what will your offer a customer that is different, what is your competitive advantage and disadvantage if any.
What steps you will take to open up new markets? Your marketing (market) and sales (customer) strategy.
Sales strategy.
How do you expect customers to buy your product or service? How you plan to gain market share? Advertising plan which includes the choice of media, cost & impact, any unique promotional activities tailored to your target market?
Marketing Strategy.
Describes how you ultimately plan to satisfy the needs of your target market by combining your market research, competitive analysis and marketing strategies. Focus on the need of the customer not the product.
There are 2 specific ways in which old classic or sales approach to market planning differs from the new marketing approach. In the old marketing approach, management tells the designers and engineers to create a product, which once produced, is given to sales people, who are then told to go find customers to buy the product.
In the new marketing approach, management first determines what the customer wants, which in turn is passed to the designers and engineers who develop and produce the product. A major difference between the old and new marketing approach is the old focuses on volume and sales, while the new focuses on profit. (Adapted from Patsula Media @ 2001)