Principles of marketing
I. Strategic Marketing
The market
1. Markets according to the nature of the products:
This classification focuses on the type of goods or services being exchanged.
Here are some common categories:
Consumer goods: Products purchased by individuals or households
for personal use (e.g., groceries, clothing, electronics)
Services: Intangible activities that provide value to consumers or
businesses (e.g., transportation, banking, healthcare)
2. Markets according to their geographical dimension:
This classification focuses on the geographical area where the buying and
selling of products or services take place:
Local market: Limited geographical area, typically a city or town.
National market: Covers an entire country.
Regional market: A specific geographical region within a country or
spanning multiple countries (e.g., European Union)
Global market: The entire world.
3. Markets according to their structure:
This classification focuses on the level of competition and concentration of
buyers and sellers:
Perfect competition: Many buyers and sellers, homogeneous
products (identical or very similar), perfect information for all
participants (everyone knows the prices and product details). This is a
theoretical ideal and rarely exists.
Monopolistic competition: Many buyers and sellers, differentiated
products (products have unique features), some control over price by
sellers due to product differentiation.
Oligopoly: Few sellers with a large market share, products can be
homogeneous or differentiated, sellers are interdependent (actions of
one seller affect the others).
, Monopoly: Single seller with no close substitutes for the product, high
barriers to entry for new competitors (e.g., patents, government
regulations).
4. Markets according to the competition level:
This classification focuses on the intensity of competition within a market:
Perfect competition: Highly competitive market with many buyers
and sellers, no single entity has significant control over price.
Monopolistic competition: Moderately competitive market with
some control over price by sellers due to product differentiation.
Oligopoly: Less competitive market with few dominant players
influencing prices and market conditions.
Monopoly: No competition, single seller dictates price and controls
the market entirely.
Porter forces.
1. Threat of New Entrants:
This force considers how easy or difficult it is for new companies to enter the
market and compete with existing businesses. Factors to consider include:
Barriers to entry: High entry barriers (e.g., high capital
requirements, complex regulations, strong brand loyalty) can deter
new entrants and make the industry more attractive.
Economies of scale: If established businesses benefit from
economies of scale (lower costs due to high production volume), it can
be challenging for new entrants to compete on price.
Switching costs: If customers face high switching costs (costs
associated with switching from an existing brand to a new one), it can
give established businesses an advantage.
2. Bargaining Power of Suppliers:
This force considers the power that suppliers have in influencing prices and
terms of supply. Factors to consider include:
Number of suppliers: A small number of powerful suppliers can
dictate prices and limit choices for buyers in the industry.
I. Strategic Marketing
The market
1. Markets according to the nature of the products:
This classification focuses on the type of goods or services being exchanged.
Here are some common categories:
Consumer goods: Products purchased by individuals or households
for personal use (e.g., groceries, clothing, electronics)
Services: Intangible activities that provide value to consumers or
businesses (e.g., transportation, banking, healthcare)
2. Markets according to their geographical dimension:
This classification focuses on the geographical area where the buying and
selling of products or services take place:
Local market: Limited geographical area, typically a city or town.
National market: Covers an entire country.
Regional market: A specific geographical region within a country or
spanning multiple countries (e.g., European Union)
Global market: The entire world.
3. Markets according to their structure:
This classification focuses on the level of competition and concentration of
buyers and sellers:
Perfect competition: Many buyers and sellers, homogeneous
products (identical or very similar), perfect information for all
participants (everyone knows the prices and product details). This is a
theoretical ideal and rarely exists.
Monopolistic competition: Many buyers and sellers, differentiated
products (products have unique features), some control over price by
sellers due to product differentiation.
Oligopoly: Few sellers with a large market share, products can be
homogeneous or differentiated, sellers are interdependent (actions of
one seller affect the others).
, Monopoly: Single seller with no close substitutes for the product, high
barriers to entry for new competitors (e.g., patents, government
regulations).
4. Markets according to the competition level:
This classification focuses on the intensity of competition within a market:
Perfect competition: Highly competitive market with many buyers
and sellers, no single entity has significant control over price.
Monopolistic competition: Moderately competitive market with
some control over price by sellers due to product differentiation.
Oligopoly: Less competitive market with few dominant players
influencing prices and market conditions.
Monopoly: No competition, single seller dictates price and controls
the market entirely.
Porter forces.
1. Threat of New Entrants:
This force considers how easy or difficult it is for new companies to enter the
market and compete with existing businesses. Factors to consider include:
Barriers to entry: High entry barriers (e.g., high capital
requirements, complex regulations, strong brand loyalty) can deter
new entrants and make the industry more attractive.
Economies of scale: If established businesses benefit from
economies of scale (lower costs due to high production volume), it can
be challenging for new entrants to compete on price.
Switching costs: If customers face high switching costs (costs
associated with switching from an existing brand to a new one), it can
give established businesses an advantage.
2. Bargaining Power of Suppliers:
This force considers the power that suppliers have in influencing prices and
terms of supply. Factors to consider include:
Number of suppliers: A small number of powerful suppliers can
dictate prices and limit choices for buyers in the industry.
