ABSTRACT
Before a marketing plan can be designed, it is necessary to fully understand the market. It is not possible to make decisions about where to advertise, where to distribute the product, how to position the product, and so forth, until a thorough examination of the market is conducted. This chapter will explain how markets are identified, segmented, and how marketers learn to understand groups of consumers and their shopping behavior. A market is defined as a set of all actual and potential buyers of a product (Kotler, P., 1980). The market includes anyone who has an interest in the product and has the ability and willingness to buy. Markets are identified by characteristics that are measurable. The basic goal of market segmentation (subdividing a market) is to determine the target market.
