Market Structures Overview

Market Structures

• There are different ways producers and consumers interact, forming different market structures.
• Some markets are local, others are national or international.

Perfect Competition

• Sellers and buyers are numerous, with a homogeneous product offered.
• Freedom exists to enter and exit the industry, with all firms being "price takers" (they cannot influence price).
• A uniform price prevails, with perfect knowledge of market conditions.

Imperfect Competition

• Consists of:

  Pure Monopoly

    - One seller controls the market.
  

  Monopolistic Competition

    - Many sellers, differentiated products, some control over pricing.
  

  Oligopoly

    - Few sellers dominate with similar or differentiated products, some control over pricing.
  

Marketing

• The promotion, selling, and distribution of a product, involving all activities from producer to consumer.
• In Veterinary Marketing, this includes transferring livestock products like meat, milk, and eggs.
• This discipline involves all actions to reach customers and foster relationships.
• Transferring products to customers ensures profitability.

Marketing Concept

• Three key aspects:
  • Identifying the Target Market: Market research identifies the most profitable customer segment.
  • Understanding Target Market Needs and Demands: Consumer preferences research provides valuable insights.
  • Developing the Best Strategy: Determines the value created and delivered to meet the target market's needs.

Packaging Considerations

• Material Selection: Environmentally-friendly materials are preferred.
• Labeling: Provides essential information about the product such as ingredients, weight, usage, price, manufacturer, date of manufacture, and expiration.
• Product Safety:
  • Expiration dates prevent the sale of harmful products.
  • Proper packaging protects products from spoiling and ensures cleanliness until opened.
• Consumer Perception: Appealing packaging increases purchase probability.
• Package Size & Type: Tailored to consumer expectations and product type (e.g., small packages for infrequent use, larger packages for frequent use).
• Preservation: Proper packaging methods (e.g., canned, smoked, cooked, dried, or frozen) extend shelf life.

Product Attributes

• Refer to the quality, features, and design of the product.
• A product should fulfill its intended purpose in terms of utility and quality.
• Differentiation in a competitive market is achieved through features and design.

Branding

• Identifies a product and helps create demand in a competitive market.
• Essential characteristics: simple, easy to read and pronounce, appealing.

Packaging and Labeling

• Packaging involves placing products in suitable containers: Protecting the product and ensuring ease of handling.
• Some packaging containers provide additional utility (e.g., reusable mineral water bottles).

Marketing Mix (4 P's)

• A combination of marketing elements, grouped into four categories:

1 - Product

• Refers to the physical product a consumer needs and is willing to pay for.
• Physical products include tangible goods like drugs.
• Decisions regarding the product include:
  • a) Product attributes: The features and qualities of the product.
  • b) Branding: The name and image associated with the product.
  • c) Packaging and labeling: The container and information about the product.
  • d) Product support service: After-sales support and customer service.
  • e) Product mix: The range of products offered by a company.

Product Lifecycle Stages

• The stages a product goes through from its introduction to its disappearance from the market.

1. Introduction/Awareness

• Big brands invest heavily in brand awareness.
• Gaining new users takes time and effort.
• Retailers may be hesitant to stock new products.
• Significant marketing expenses are needed to get the product on store shelves.

2. Growth

• Sales and profits increase rapidly.
• Consumers embrace the product.
• Repeat purchase is encouraged.
• Profits decline as competitors enter the market.

3. Maturity

• The market becomes saturated, with high levels of competition.
• Promotional and price adjustments may be necessary to remain competitive.
• Companies may remain in the maturity stage with no significant growth.

Stages of the Product Life Cycle

• Different phases from development to decline.

1- Product Development

• Significant investment in developing a new product.

2- Introduction

• Product is launched into the market.
• Sales and profits increase slowly.
• Recouping development investment takes time.
• Significant promotional and advertising spending is required.

Product Life Cycle (PLC)

• Every product has a life cycle with variations in demand, profit, and competition.
• Understanding the life cycle helps marketing managers plan strategies.

Stages of the Product Life Cycle

1. Development
2. Introduction
3. Growth
4. Maturity (Saturation)
5. Decline