Discuss How Brand Names May Enhance the Efficiency of Markets

question 62

Essay

Discuss how brand names may enhance the efficiency of markets in a less developed country.

Understand the criteria for forming market segments including the need for differences among segments and similarities within segments.

Recognize the importance of linking customer needs to marketing actions in the process of segmenting and targeting markets.

Identify the reasons and benefits of market segmentation for businesses.

Distinguish between various bases of market segmentation including demographic, geographic, psychographic, and behavioral.

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Definitions:

Markdowns

Reductions in the selling price of goods, often to clear old stock or respond to reduced demand.

Complementary Products

Products that enhance the use of a primary product or are better used in conjunction with the primary product, increasing customer satisfaction and sales opportunities.

Maintained Markup

The practice of keeping the difference between the cost price and selling price consistent across products or over time.

Original Markup

The initial amount added to the cost price of goods to determine their selling price.