Market Structure PDF

MARKET STRUCTUR E GROUP 2  Introduction A marketing structure defines how a company organizes its marketing efforts. It outlines the roles, responsibilities, and reporting lines within the marketing department. Choosing the right structure depends on your company's size,...

MARKET STRUCTUR E GROUP 2  Introduction A marketing structure defines how a company organizes its marketing efforts. It outlines the roles, responsibilities, and reporting lines within the marketing department. Choosing the right structure depends on your company's size, goals, and resources. 1.FUNCTION 2. PRODUCT / AL SERVICE 3. STRUCTU STRUCTURE GEOGRAPHIC Teams RE are Teams are organized by organized STR UC TU Teams are RE marketing around specific organized by function, such products or geographic as marketing services. region. communication s, product marketing, digital marketing, etc.  4. CUSTOMER 5. MATRIX STRUCTURE STRUCTURE Teams are A organized by combination customer of two or segment. more structures, such as functional Choosing the Right Structure:  Choosing the Right Structure; Company size Smaller companies may use a functional structure, while larger companies may use a matrix or product/service structure.  Choosing the Right Goals Structure; If your company is focused on launching new products, a product/service structure may be more appropriate. If your company is expanding geographically, a geographic  Choosing the Right Structure; Resources The structure should be aligned with the resources available, both in terms of personnel and budget. Main classification of Market Structure: Perfect Imperfec Competi t tion Competit ion  Perfect Competition It implies an ideal situation for the buyers and sellers.  (5) CHARACTERISTICS OF A PERFECTLY COMPETITIVE MARKET 2. A homogenous 1. There are 3. Perfect product is sold by many buyers mobility of sellers. The goods and sellers that resources refers offered for sale are each has a to the easy exactly the same negligible impact transfer of or perfectly on market price. resources in standardized. terms of use. (5) CHARACTERISTICS OF A PERFECTLY COMPETITIVE 4. There is perfect MARKET 5. Market price knowledge of and quantity of economic agents of output are market conditions determined such as present and exclusively by the future prices, costs forces of demand and economic and supply. opportunities.  Pure competition is a market structure where many buyers and sellers offer identical or very similar products. In this type of market, no single buyer or seller has the power to influence the price. Character istic of Pure Competiti  1.Large 2. Number of Homogeneou 3. Freedom of Buyers s Products Entry and and All products in Exi t Selrelers The are the market are Businesses many identical or can enter or participants in very similar, leave the the market, so meaning market without no single buyer consumers can facing major or seller can easily switch obstacles or influence the between costs. price. sellers.  4. Perfect Inform atio n 5. Price 6. No Barriers Bothbuyers and sellers Takers to Sellers accept have complete the market mpetit CoThere ion are no and accurate price as given restrictions or information and cannot set controls that about prices, their own limit the ability products, and prices. of firms to market compete. conditions.  How Perfect Competition affect Market Behavior? Perfect competition creates market behavior in a marketing environment where numerous buyers and sellers operate, leading to efficient resource allocation and pricing.  1. Profit Maximization Perfect competition aims to maximize profits, given by market conditions.  2. Cost Minimization Perfect competition minimize costs to maintain competitiveness.  3. Innovation Some perfect competition innovate or improve their product to reduce costs. 4. Advertising Perfect competition focuses on informative advertising rather than persuasive  Long-run effects of Perfect Competition: Profit being earned, expects new firms. The number of firms increases, the market supply increases. The market supply increases, the price of goods decreases.  Imperfect Competition There are more than one firm but fewer than a perfectly competitive market. This means that firms have some market power, meaning they can influence the price of their Character istic of Imperfect Competiti  1. Few 2. Product sellers differentiatio There are a n Firms can 3. Barriers to limited number differentiate entry of firms in the their products Businesses market, from can enter or allowing each competitors, leave the firm to have a creating brand market without noticeable loyalty and facing major impact on the giving them obstacles or market price. some pricing costs. power.