Market segmentation is a subset of a market that has been complete by number of people with one or more characteristics that cause them to demand comparable products or services based on the merits of those products such as the function and possibly the price. Market segmenting is dividing the marketing into different groups of individual market that have comparable needs that a company divides into different groups, which have separate requirements, purpose etc. There are four important categories of segmentation, and these are: Geographic- this is under the heading of where people live, and in which country or city they are living in. In addition, it can be under the heading of population. Demographic- this is based on where people and type of people.
One way to narrow the market is through market segmentation. Market segmentation allows an organization to target consumers who will value a particular service based on common characteristics. It is also considered to allow the organization to bend the supply to the will of demand (Berkowitz, 2006, p. 164). Lifestyle is an important aspect affecting a consumer’s decision-making process. It is a lifestyle in which people live as demonstrated by how they spend their time, what they think, and the interest they have (Berkowitz, 2006, p. 111).
Identifying Principles or Concepts After completing the “Applying Supply and Demand Concepts” simulation the following concepts and principles were identified: demand and supply along with equilibrium as microeconomic principles, and shifts in demand and supply along with price ceiling as macroeconomic concepts. The previous concepts were identified accordingly because microeconomics analyzes from the parts to a whole; therefore, supply and demand and equilibrium as the small parts that affect the whole. In contrast macroeconomics analyzing from the whole to the parts reflects how the concepts of price ceiling and shifts in demand and supply are larger outside factors that affect the smaller internal parts. Supply and Demand Curve Shifts In the simulation there were multiple examples reflecting shifts in the demand curve as well as shifts in the supply curve. For any supplier, a higher price is an incentive to supply more; therefore, as rental rates increased, the number of apartments GoodLife was willing to lease also increased.
However, that market is high competitive and almost commodity-like. Company A would need to consider reducing its labor force or even moving its operation to low cost-region in order to be competitive in the iPod/iPhone headphone market. Another new customer group is the people who use noise-cancellation headphones. There are limited players in this market. Also, the quality of noise cancellation headphones vary a lot and the customers are willing to pay higher price for good product.
Contingency Plan - We try to map two scenarios that might cause us to re-evaluate our marketing plan such as unanticipated reaction from the customers or the competition. Situation Analysis Customers - The cushion pads market consists of many different segments, some are direct customers and some influence the market’s direction and should be considered when analyzing the situation. Pile hammer distributing/renting companies - These companies are the contractor's usual suppliers of cushion pads and therefore are an important segment in the market
The higher the price of a good the more supply of the good will be placed into the market. Conversely, as the price falls, the less of a supply of the good will be placed into market. Determinants of Supply Supply is determined by the cost of the resources needed to produce the good, technologies used in production, any taxes or subsidies that the producer receives, the cost of goods that are comparable or not, the outlook of the producers, and how many sellers are in the market. As these determinants change there will be a corresponding change within the supply side of the
Supply and Demand Simulation Amanda Huenefeld ECO/365 Sadu Shetty January, 14, 2013 Introduction Supply and demand are the two influences that govern pricing in the larger picture of a viable economic market. The two factors are like two forces. Equally the conclusive levels of supply and demand, and the comparative levels of the two in contrast to one another, are significant. The standard of supply and demand is that if one or both varies, there will be a transient difference in the amount of product manufacturers are equipped to sell and the quantity that consumers are willing to buy. This difference will cause the market price to increase or decrease when necessary until the quantities are the same.
Economic Principles ........................................................................................................... 5 V. Conclusion .............................................................................................................................. 7 VI. References ............................................................................................................................. 9 1 I. Introduction There are many different procurement markets in the world. Public sectors often use the system of auctions in order to ensure competition within these markets. Buyers announce their need of a specific good and the date of auction whereby the supplier with the smallest bid gains the contract.
According to an article in Slate On, the poor and low income people in our society are more overweight than the wealthy. This psychological behavior transcends to other cultures as well, telling me that people don’t really want equality but superiority. Regardless of the parts of the world you are from, someone always wants to feel superior to someone else. Though Americans did inherit the “wanting more” trait from the frontier opportunities, there were an influx of other nationalities flocking to America for the same opportunities (82). Likewise, they too have adopted the “hunger for more” mentality because they are financially able to adopt the psychological want.
Music is the second top seller in entertainment spending, with 92% of kids 14-17 owning an MP3, and 84% of adults age 18-24 owning some type of MP3. With this much of the population owning MP3s, the music industry is booming with the sale of MP3 downloads. On the other hand, 63% of people download illegally, and only 52% of music downloaded was paid for. This means that, as a nation, maybe the problem isn’t the “cleanliness” of music, but the way we get this music. The people that support censorship should try to make it harder to download music illegally.