Market Strategy And Types | Market Definition, Importance, And Functions

Market Strategy And Types | Market Definition, Importance, And Functions

Welcome here in this article, you will find here very useful ideas for you business and also you will find lots of tricks for you business growth. In this article we will try to deliver every basic points about the topic “Market strategy and types”.

Market Definition

A management route to getting items and services needed by the client. It helps to identify a product, determining demand, setting a price, and choosing on digital services or channel of distribution. It also involves  in creating and implementing a business plan that encompasses all outbound and inbound marketing. Marketing mix consist of 4ps (place, price, promotion and product)

Market types

Basically there are two types of marketing.

Perfect market:

Qualities of an ideal or perfect market

  • In the market, there are a lot of buyers and sellers.
  • Each business produces a similar item.
  • Buyers have perfect price information at their fingertips.
  • There are no fees associated with transactions.
  • Entry and exit into the market are both open.

There’s few perfect markets; those that offer commodities, such as agricultural items, come closest.

Imperfect Market

Any economical market which does not match the strict conditions of the imaginary perfectly—or primarily market is referred to as an imperfect market. A fictional market structure in which a set of criteria is met is known as pure or perfect competition. All genuine markets can be defined as imperfect markets since they operate outside of the range of the perfect competition hypothesis.

Monopoly market: A monopolistic market is a fictional situation in which only one corporation can sell goods and services to the general public.
A monopoly, as defined by Irving Fisher, a market in there is “no competition,” resulting in a situation in which one person or company is the exclusive seller of a specific item.

Monopolistic market: There are many suppliers in monopolistic competition who offers homogeneous products that cannot be substituted but somehow they are differentiated product. Businesses compete for customers and set prices, but their individual choices have no bearing on the other.

Oligopoly: There are a lot of customers in this system, but only a few sellers. Others maybe not allow to enter the market because of the small number of participants. They may establish pricing collectively or, in the situation of a cartel, only one leads the way in determining the price of goods and services, with the rest following.

Importance of marketing in business

Marketing is very important for a business because today’s world is running with new technology so it is very important for a businessman to keep his business up to date and use tool that grow his business name and revenue as well. Without marketing no business can success in today’s world. A creative businessman knows the worth of marketing.

1 Help in trading of commodities
Market strategy and types| market definition, importance, and functions
Source: pixabay (Market strategy and types)

Marketing plays an important role in the trade of commodities. Customer gets goods and services through a variety of intermediaries, such as wholesalers and retailers. Both manufacturers and consumers benefit from marketing. It tells the first about consumers’ individual interests and needs, while the latter about the things that manufacturers can provide.

2 Maintain living standard

According to some of the writers, “Marketing is the delivering of a living standard,” and  “Marketing is the creation and distribution of a cost of life to the public,” or “Marketing is the formation and delivery of a lifestyle to the society.”

Marketing strategy

Market strategy and types| market definition, importance, and functions
Source: pixabay (Market strategy and types)

planning is an important step for a business to get success, making a good and effective strategy is a key of success and growth, here are some basic and needful steps which can construct a strong boundary for your business to run long and effectively.

  • Understand your customer need, research and produced according to market
  • Research and evaluate your competitor
  • Set marketing mix (product, place, price and promotion)
  • Look on market value and position
  • Set your budget
  • Go ahead and process

Function of marketing

1 Promotion

Increasing sales or information dissemination through advertising a product, business, or venture. By promotion you can make your sale much better.

2 Selling

the process of making things and options provided for customers to purchase. A transaction in which a good or service is traded for money is defined as selling.

3 Product management

In adapt to market prospects, product management is a promotional tool that includes acquiring, building, keeping, and enhancing a services or products mix. (For example, a coaching centre might contract meal services from a contractor and then use those services to deliver customer service to its clients.)

4 Marketing Information

Marketing is mainly concerned with the planning, promotion, and selling of items in existing markets as well as the introduction of new products as a commercial function.
A marketing function, or MIS, is a tool for collecting, storing, processing, and sharing useful marketing data for decision-making.

5 Pricing

A price refers to the amount paid for a product, service, or concept. A product’s, service’s, or idea’s price is the sum for which it is exchange.
Pricing is an important factor of any marketing strategy.

Common strategy for pricing:

1 Cost-Plus Pricing: Cost-plus pricing is a valuation technique for which the final price of a product is established by adding a set percentage to the unit cost of the product, which is known as markup.

2 Competitive Price: is a method that aligns a product’s price with that of its opponents. Google’s price of popular products is a real-life example.
Because it allows the business to regulate the competition, a competitive pricing plan helps you avoid weakening and customers loosing to competitors.

3 Penetration Pricing: Businesses use it to encourage clients to try a new products / services by offering a discounted price during its initial launch.

4 Price Skimming: a product pricing approach in which a company charges the maximum starting price that customers are willing to pay and then gradually decreases it.

5 Value based pricing: When compared to its rivals, value-based pricing is the approach of determining a price through which a company evaluates and seeks to earn the distinctive price of its product for a certain client segment.
Value pricing is a method of determining a product’s or service’s price based on the customer’s perception of its value.

6 Financing

The process of allocating funds for commercial activities, purchases, or investments is known as financing. Banks, are the example, in the business of supplying capital to organizations, customers, and investors in order to assist them achieve their objectives.
Finance professionals are in charge of the financial statements as well as the purse strings.
Business owners can break the pattern by setting up a long-term marketing costs that is independent from their daily operations with the support of financing.

7 Distribution

One of the marketing mix’s four components is distribution. The act of making a goods or service available to a business or individual user who requires it is known as distribution. This can be carried out directly by the manufacturer or service provider, or through middlemen or distributors.

Channels that is used in this process,

  • Direct selling
  • Selling through middleman
  • Reverse logistic channels
  • Dual distribution

Marketing VS Sales

1. Focus on long term
2. Continue after selling
3. Market create pull
4. It is wide concept
5. Outside prospective
1.Focus on short term
2.Stop after selling
3. it is pushing
4. It is narrow concept
5. Inside prospective
Market strategy and types

Here we end with “Market strategy and types”.

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