The word market originally meant the place where the exchange between seller and buyer took place. Today, we speak of a market not only as a place but also as a particular type of buyer for example, the youth market or the motorcycle — market. The phrase share of market refers to the percentage of the total market in a product category that buys a particular brand. As Figure 2.1 shows, the four main types of markets are 1) consumer, 2) (or industrial), 3) institutional, and 4) channel. We can further divide each of these markets by size or geography. consist of people who buy products and services for Consumer markets personal or household use. As a student, you are considered a member of the consumer market for companies that sell jeans, athletic shoes, sweatshirts, pizza, music, textbooks, backpacks, computers, education, checking accounts, bicycles, travel, and vacations, along with a multitude of other products that you buy at drug and grocery stores, which the marketing industry refers to as packaged goods. consist of companies that buy products or Business-to-business markets services to use in their own businesses or in making other products. Advertising in this category tends to be heavier on factual content, but can also be beautifully designed. include a wide variety of profit and nonprofit Institutional markets organizations, such as hospitals, government agencies, and schools that provide goods and services for the benefit of society. Ads for this category are very similar to business-to-business ads in that they are heavy on copy and light on visuals and emotional appeals. include members of the distribution which is made Channel markets up of businesses that we call resellers or intermediaries. Channel marketing, the process of targeting a specific campaign to members of the distribution channel, has become more important now that manufacturers consider their distributors to be partners in their marketing programs. As giant retailers, particularly Wal-Mart, become more powerful, they can dictate to manufacturers what products their customers want to buy and how much they are willing to pay for them. Businesses spend most of their advertising dollars on consumer markets, although business-to-business advertising is becoming almost as important. Why Is Services Marketing Important? Services are the dominant part of the economy in most developed countries. Marketing a service-based business is different in a number of ways from marketing goods because the product is intangible.
The word market originally meant the place where the exchange between seller and buyer took place. Today, we speak of a market not only as a place but also as a particular type of buyer — for example, the youth market or the motorcycle market. The phrase share of market refers to the percentage of the total market in a product category that buys a particular brand. As Figure 2.1 shows, the four main types of markets are 1) consumer, 2) (or industrial), 3) institutional, and 4) channel. We can further divide each of these markets by size or geography. Consumer markets consist of people who buy products and services for personal or household use. As a student, you are considered a member of the consumer market for companies that sell jeans, athletic shoes, sweatshirts, pizza, music, textbooks, backpacks, computers, education, checking accounts, bicycles, travel, and vacations, along with a multitude of other products that you buy at drug and grocery stores, which the marketing industry refers to as packaged goods. Business-to-business markets consist of companies that buy products or services to use in their own businesses or in making other products. Advertising in this category tends to be heavier on factual content, but can also be beautifully designed. Institutional markets include a wide variety of profit and nonprofit organizations, such as hospitals, government agencies, and schools that provide goods and services for the benefit of society. Ads for this category are very similar to business-to-business ads in that they are heavy on copy and light on visuals and emotional appeals. Channel markets include members of the distribution which is made up of businesses that we call resellers or intermediaries. Channel marketing, the process of targeting a specific campaign to members of the distribution channel, has become more important now that manufacturers consider their distributors to be partners in their marketing programs. As giant retailers, particularly Wal-Mart, become more powerful, they can dictate to manufacturers what products their customers want to buy and how much they are willing to pay for them. Businesses spend most of their advertising dollars on consumer markets, although business-to-business advertising is becoming almost as important. Why Is Services Marketing Important? Services are the dominant part of the economy in most developed countries. Marketing a service-based business is different in a number of ways from marketing goods because the product is intangible.
test-bank-advertising-imc-9th-edition-moriarty.docx