Thursday 20 September 2012

Making and Segmenting Markets - Summary

'Markets are constructed according to three main criteria,the political boundaries which have rules and legislation, the size and organization of producers, and the availability and access of media. Because of the communications revolution, markets are no longer geographically limited. Marketers need finite markets in order to plan and coordinate campaigns in the most profitable and cost effective way. Finite markets are constructed and classified in terms of the product category and consumer usage. However, though marketers constantly try to fix and manage markets, they are, by their very nature, heterogeneous and unstable. Most marketers perceive markets to be saturated and in decline. To keep the overall market share of the company up, they segment the market into niches, repositioning existing brands and launching new brands against rivals. To gain an advantage, marketers often try to work outside the constructed world of the fixed markets to undermine the competition, bringing consumers in from other markets and moving brands into others.' - The Advertising Handbook, Sean Brierley.

This has taught me that when I advertise my water, I must make sure to put my market in the right section. I believe that I will have to see how to advertise within the sector of the market that I want to get to buy my water. I need to look at my competitors, in order to see how they advertise and then see how I am able to compete with them.

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