MARKET STRUCTURE

Market structure is the particular arrangement of market groups or segments from which a company’s management target markets. Managers of housing construction companies know that housing buyers a typically adults over 25 years of age, usually with at least moderate income. Even among a group of prospective buyers, not everyone will have the same preferences for prospective that will have a particular need or want. Thus, the market is further divided into different buyer groups, often called segments. Thus the housing market contains distinct segments. The housing preferences of people who are married and have young children at home are different from those of young, single people. The housing preferences of older adults whose children have left home are different from the preferences of either of these two groups. In this fashion, a market structure is described that delineates the particular set of these market groups or segments.

PRICE IN MARKETING

Management faces two types of pricing decisions. New products must be priced, and the prices of existing products must be adjusted in the face of competitive, cost and market conditions. Pricing strategies, particularly for new products, are a high level responsibility shared by marketing and other executives. Pricing usually involves more executives form marketing and sales than other corporate areas, but these executives share the responsibility for pricing with other high level executives.

Price is often used to enhance the image of a product, it increase sales through discount pricing, or in combination with promotion, to build future sales. Price is used in different ways by different companies, depending on the role it plays in the overall marketing program. Determining the role that prices should play relative to other marketing mix variables establishes important boundaries and guidelines for pricing decisions.