Market strategy also includes the distribution channels for the product, pricing and terms of sale, promotion and advertising plan, marketing budgets, inventory selection and management, visual merchandising, customer relations and an evaluation of the marketing strategy. Ideally, market segments with a potential for high sales, profits, growth and a minimum of competition are the most attractive. A Word of Caution Price is a function of both cost and marketing. Price should be determined in relation to fixed and variable cost and should reflect a profit. For more information on determining price, refer to Home Business Fact Sheet, Pricing, CDFS-1326.
Price is also a function of marketing.
What the customer perceives to be a just price may not be sufficient to cover the costs of the business. Be sure to consider both functions of price before determining what price to charge. Summary Target marketing or market segmentation based on customer needs and wants can increase profits. Target marketing identifies customer groups and the reasons they purchase. Market segmentation helps a business be more responsive to changing customer needs.