What would you say is the different between a Market Definition and Product Market Definition?

[Syranius Apostle]

After reading many contrasting definitions, I am still uncertain on the exact differences between a 'Market Definition' and a 'Product Market Definition'. I have tried to reverse engineer my understanding, by looking at examples but this has further clouded my understanding.

Example
Let's say I have defined my Market as 'Kid's Wall Art'. Making up my overall Market Definition, are two sub-markets; 'Wall Paintings' and 'Wall Stickers'.

Now that I have defined my Market and Sub Markets framework, I want to work on defining my Product Market. In determining the Product Market, would I simply take the Sub Market 'Wall Paintings' and break this up by, for example, styles etc?

I would be keen to hear on your take on this as I look to see if my approach to this, needs re-working.

 

[Newchodge]

Eh? What on earth are you talking about?

 

[Syranius Apostle]

Eh? What on earth are you talking about?

I am looking to expand upon my understanding, in relation to the process of breaking up a Market. This, in preparation for the next phase; Market Segmentation.

 

[obscure]

"Market Definition" is a term people use when their head is just part way up their arse.... "Product Market Definition" is used when their head is all the way up.

 

[fisicx]

I am looking to expand upon my understanding

You don't need to expand your understanding, you just need to start selling wall stickers. As @obscure says: it's just marketing guff.

 

[The Byre]

"Market Definition" is a term people use when their head is just part way up their arse.... "Product Market Definition" is used when their head is all the way up.

It helps enormously, if you can use expressions like 'paradigm shift' and 'cross functional matrix management'.

Next homework question?

 

[Syranius Apostle]

@fisicx Thanks for your input. I understand that there is a lot of 'marketing guff' about these days. That said, don't you agree that understanding your Market and Product Market is fundamentally vital; as preparatory work for the Market Segmentation process?

 

[fisicx]

That said, don't you agree that understanding your Market and Product Market is fundamentally vital; as preparatory work for the Market Segmentation process?

No.

 

[Newchodge]

No.

I think you mean yes. The question was asked in the negative.

 

[fisicx]

Either way chasing definitions is fruitless. You either know your market or your don't. Labels don't matter

 

[Syranius Apostle]

@fisicx Not entirely sure what you mean here. In order to know your market, you need to define it. Therefore, identify areas such as 'Gender', 'Location' and 'Class'. All of which are labels. Without which, would surely serve to create confusion; not just for you but for anybody within your organisation who would need to understand your market.

 

[fisicx]

My point was that you don’t to worry about the meanings of marketing terminology. You know what you want to do so use any old words you want. I use the word ‘banana’ for things, as in: ‘it’s the banana plan’ or ‘we are going to do the banana’. As long as you know what banana means everyone is happy.

 

[pentel]

The difference between a Market Definition and a Product Market Definition is the word "product".

In the realm of marketing you can make up your own definitions and to use those terms truly means that "Market Definition" is a term people use when their head is just part way up their arse.... "Product Market Definition" is used when their head is all the way up.

Thanks to obscure.

 

[Syranius Apostle]

Not sure why the terms 'market definition' and 'product market definition' are seen in a snobbery light. They seem pretty standard definitions, especially in preparation prior to the Market Segmentation Process. Would I be right in thinking that those who discard the practice of Market and Product Definitions, also overlook the practice of segmenting their market? Simply put, without a Market Definition and/or Product Market, I fail to see how an effective marketing strategy could be implemented; especially an online campaign.

 

[Syranius Apostle]

@The Byre Thanks for your response. Not sure if you are referring to your included quote or my original post?

 

[fisicx]

@The Byre Thanks for your response. Not sure if you are referring to your included quote or my original post?

He was having a laugh

It's not snobbery. It's just that people here don't get hung up on marketing definitions. The practices don't get discarded they just don't get given a label. Or they get given a label the business owner wants to use.

 

[AllUpHere]

It helps enormously, if you can use expressions like 'paradigm shift' and 'cross functional matrix management'.

Next homework question?

Extra head up bum points to anyone who pronounces paradigm as para-dig-em

 

[Newchodge]

OK @Syranius Apostle. Please explain what you understand 'Market Definition', 'Product Market Definition' and Market Segmentation to mean, why they are important and how you use them? As I certainly don't have a clue.

 

[MartinCivil]

@fisicx Thanks for your input. I understand that there is a lot of 'marketing guff' about these days. That said, don't you agree that understanding your Market and Product Market is fundamentally vital; as preparatory work for the Market Segmentation process?

I'm not sure how you can consider something vital when you don't know what they mean?

 

[fisicx]

After reading many contrasting definitions...

They seem pretty standard definitions....

So which one of these statements is correct?

 

[The Byre]

Dear @Syranius Apostle, when your lecturer or teacher gave you this homework, what he or she wanted was for you to define the term 'market' and also contrast and compare with a 'product market'. This suggests to me that you are right at the very beginning of your studies of the subject 'Economics'.

I shall not do your homework for you, but be rest-assured that there is enough material on-line in such esoteric publications as Wikipedia and elsewhere for you to find out what it is that you need to know.

Tip - also look up the term 'resource market' and the terms 'perfect' and 'imperfect markets'.

 

[GraemeL]

See also http://www.ukbusinessforums.co.uk/t...et-sub-market-or-product-market-level.378892/

 

[Syranius Apostle]

OK @Syranius Apostle. Please explain what you understand 'Market Definition', 'Product Market Definition' and Market Segmentation to mean, why they are important and how you use them? As I certainly don't have a clue.

@Newchodge ... My approach, to your highlighted terms, are as follows:

• Market Definition: A place where buyers and sellers come together, in order to trade on products and/or services. I feel that a well defined market will help you answer key business questions, such as; Market Size, Market Value, Entry and Exit Barriers as well as Growth Opportunities to name a few. Arguably, I see no way of performing any tangible form of Market Research, without having a well defined market. As an example, I may be in the 'Footwear Market', where 'School Shoes', 'Work Boots' and 'Casual Shoes' are my Sub Markets. I would then choose highlight the Target Markets, within each Sub Market, based on the outcome of the Segmentation Process.
  
• Product Market: I feel that a Product Market is more specific than the above [more generic] Market Definition. One approach, I would experiment with, would be placing the customer's needs at the top of the 'Product Market Hierarchy'. In the case of Shoes, I could look at placing 'Comfort' at the top. Then display all shows that were comfortable. It would then be these products, which I would use for Product Positioning/Perceptual Maps, which goes beyond the scope of your question.
• Market Segmentation: Targeting the mass market, is often regarded as ineffective and expensive. Alternatively, businesses can look at niche marketing. One of the ways to do this, is to break up your market into relevant Market Segments. To help segment your market, many people choose to break up their potential markets by; Demographics, Geographic, Psychographic, Benefits and/or Behavioural. It would then be these 'Segmentation Bases', which would form the basis for the follow up Segmentation Trees and Cluster Analysis as I look to discover all of your possible Market Segments. The Targeted Market(s) are simply your chosen Market Segment(s). By now, I would have a good idea about my Target Market(s). Using such knowledge, I would then move on to my Positioning Strategy and Marketing Mix.

Hope this answers your question. That said, I do not claim to be 100% right, hence putting up the question here. As ever, I am always welcoming on other people's takes as I continue to learn and clarify my understanding of the various approaches to Marketing.

 

[Syranius Apostle]

I'm not sure how you can consider something vital when you don't know what they mean?

@MartinCivil ... Vital, in the sense that having a fully comprehensive understanding of the Market and Product Definitions seem a prerequisite to the follow up; Segmentation, Targeting and Positioning processes. You do not need an understanding of something, in order to know whether it is vital or not. Just like you do not need to understand how someone's Heart functions, in order to realise that it is a vital Organ! ;-)

 

[Syranius Apostle]

So which one of these statements is correct?

@fisicx ... I stand corrected. 'They seem pretty standard definitions ...' was meant to be 'They seem pretty standard processes ...'.

For the avoidance of doubt, I was highlighting the fact that whilst Market and Product Market Definitions are standard processes in organisations, there seems to be a lot of variations in methodologies etc. I understand that different business models would inevitably have different approaches; but the variations I have seen, go beyond the expected variants. So much so, even definitions of industry terminologies greatly vary at times.

 

[Syranius Apostle]

Dear @Syranius Apostle, when your lecturer or teacher gave you this homework, what he or she wanted was for you to define the term 'market' and also contrast and compare with a 'product market'. This suggests to me that you are right at the very beginning of your studies of the subject 'Economics'.

I shall not do your homework for you, but be rest-assured that there is enough material on-line in such esoteric publications as Wikipedia and elsewhere for you to find out what it is that you need to know.

Tip - also look up the term 'resource market' and the terms 'perfect' and 'imperfect markets'.

@The Byre ... If I had the luxury of a Teacher or Lecturer, or any formal educational environment for that matter, do you not think I would be having this discussion with them and/or my peers? ;-)

Thank you for the tips. I shall have a look at these, once I have gained a credible understanding of my current question.

 

[The Byre]

Well, you have to admit that it reads like a homework question, designed to make the student read up on the nature of markets.

A market is a place (physical or virtual) where buyers and sellers of goods and/or services come together.

A product market is a place where the same come together to buy and sell products, as opposed to resources such as utilities or raw materials.

Market segmentation is the process of dividing the market into segments, according to various attributes of those participating in the market. These attributes are usually ascribed to those seeking to buy goods or services and are divided into geographic (where are they), psychological (lifestyle and life choices), demographic (age, income, education, etc.) and behavioural (rational reactions to price changes, quality or competing offers).

These segments interact and it is all part of that branch of mathematics called sets. When I was at RTL television, we had (at first) 16 basic viewers, ranging from the most desirable (single young professional women, who watch about one hour of TV a day) to the most undesirable (lonely old women on a state pension who watch about 12 hours per day). Each group was carefully analysed for viewing habits and purchasing preferences.

Sellers, esp. where there are many competing sellers, can also be segmented.

OK, next question . . . ?

 

[fisicx]

I was highlighting the fact that whilst Market and Product Market Definitions are standard processes in organisations, there seems to be a lot of variations in methodologies etc.

And this how it should be.there is no standard model for marketing. Every single product and service will have a different marketing plan with a variance on the terminology and definitions used.

Which is why chasing a fixed definition is a fruitless task.