Principles of Market Segmentation Market segmentation is central to almost any professionally planned and executed marketing' program.

The concept of segmentation recognizes that customers and prospects within a market vary across a variety of dimensions and that not every segment constitutes a desirable target for the firm's marketing efforts. Market segments. A segment is composed of a group of current and potential customers who share common characteristics, needs, purchasing behavior, or consumption patterns. Effective segmentation should group buyers into segments in ways that result in as much similarity as possible on the relevant characteristics within each segment but dissimilarity on those same characteristics between each segment. Two broad categories of variables are useful in describing the differences between segments. The first deals with user characteristics, the second with usage behavior. User characteristics may vary from one person to another, reflecting demographic characteristics (e.g., age, income, and education), geographic location, and psychographics (the attitudes, values, lifestyles, and opinions of decision makers and users). Another important variable is the specific benefits that individuals and corporate purchasers seek from consuming a particular good or service. Usage behavior relates to how a product is purchased and used. Among such variables are when and where purchase and consumption take place, the quantities consumed ("heavy users" are always of particular interest to marketers), frequency and purpose of use, the occasions under which consumption takes place (sometimes referred to as "occasion segmentation"), and sensitivity to such marketing variables as advertising, pricing, speed and other service features, and availability of alternative delivery systems. Target segment. After evaluating different segments in the market, a firm should focus its marketing efforts by targeting one

Definition Analysis is method of examining pattern and behaviors to determine A Variation Pattern Component Relationship Spatial Price Analysis space related analysis Price efficiency Analysis Commodity Price Analysis Temporal Time related analysis to determine price movement, trend, seasonal price variation, the major objevtives is for efficiency

Temporal and commodity price analysis

This is an price analysis done relative to time measured. It works with cross sectional data of commodity prices. In the factor of location are assumed to be constant. Price analysis that uses temporal analysis is called time series analysis. This type of analysis assist in understanding of the structure within which price data originates and the nature of variation in both short and long term. Temporal analysis enables the understanding of the structure, trend and forecast be made with temporal price analysis the computation of index numbers is more effective in assessing efficiency of a market system. Two method of extracting seasonal index which are obtainable, although others special index were usually published by government. Seasonal price index measure the percentage rate of change in price of commodity over a period of time, eg month, week, year depending on the pattern the price data were collected. Seasonal price index is always expressed in terms of a base period of 100. However, computation are also possible a. The simple index number construction method is the that rate of change of base period and period under consideration were taken as follows ( if a base month has price of 600 per kg of soybean, the month under consideration is 650 per kg, the index number will be 650 -600/600 = 0.083 so this rate is now added to 100(base month) to have the price imdex as 100.083. b. Another method is to used the moving average centering method: To compute the seasonal price index by computing a centred 12-month moving average. In this the seasonal indices is adjusted so that the mean equaled 100.0 can be used to de-seasonalized the original data. After the seasonal variation were removed on the data, further analysis for efficiency test, trend, and forecasting analysis can made to the data. For drawing conclusion from the result. The temporal price analysis were to be discussed. The additive and multiplicative modeling. In the first instance to assess the efficiency seasonal prices changes were isolated through subtracting the deseasonalised data from the original data(Y=T+C+S+I) by subtracting the deseasonalised data we have S=Y-T+C+I) where Y, the time series variable, is the sum of all variable, T the trend, C the cycles, S the seasonal movement and I, irregular changes. The value are fitted to OLS and analyzed. The deseasonalised data contain sum or product of three components which are trend, seasonal and residual component.(Francis, F.,); (Anthonio in Adekanye, 1988). The basis for this analysis is to draw conclusion on efficiency, trend and forecasting future. The common practice is to

Price efficiency Analysis Commodity Price Analysis - Price changes due to change in quality and quantity demanded and supply of commodity. Both intra and inter- commodity analysis. The objective of the method is for assessment of utility and degree of responsiveness of commodity to changes in price. Within and across commodity.(Price elasticity and cross elasticity). Comaprisim were made between them to ascertain the degree of changes. Temporal Time related analysis to determine price movement, trend, seasonal price variation, the major objectives is for efficiency. The efficiency of the market system and seasonal price changes for forecasting the future price. In this two types were used: Additive method and Multiplicative method. Spatial price analysis Concept

This is an area of Agricultural Marketing that deal primary with studying movement of agricultural commodity price between locations. This is true agricultural commodity to have different prices depending on the location of the commodity. The examination of this differences is called spatial prices analysis. It begins with an overview of spatial data pattern, as it relate to price of the commodity and the importance of location (place, context and space) in a more scientific and policy-related manner to discover relationship, pattern, differences. Covering fundamental distributions, relationship concerning how price attributes in geographical space are represented in a methods more clearly, for inferences to be drawn, observed, from the analysis and spatial modeling be set, it is designed to take the reader through the key areas that underpin the analysis of spatial price data, providing a platform from which to view and critically appreciate many of the key areas of the field for research and policy recommendations. Spatial means each item of data has a geographical reference(location) on earth, so we know where each case occurs on a map through spatial indexing. This spatial indexing is important because it carries information that is relevant to the analysis of the data.

The analysis of data on some process operating in space, where methods are sought to describe or explain the behavior of this process and its possible relationship to other spatial phenomena Objective of spatial data analysis: to understand the spatial arrangement of variable values, detect patterns, and examine relationships among variables

Why Do Spatial Data Analysis To learn more about what youre studying To avoid specification problems (missing variables, measurement error) To ensure satisfaction of statistical assumptions To learn more about statistics than you ever wanted or thought possible! To learn the limitations of statistics Theoretical reasons for Spatial Analysis It tells us something more about what were studying Is there an unmeasured process that affects the phenomenon? Does this process manifest itself in space? Examples: interaction processes, diffusion, historical or ethnic legacy, programmatic effects Statistical Reasons for Spatial Analysis Violation of regression assumptions Units of analysis might not be independent Parameter estimates are inefficient Estimated error variance is downwardly biased, which inflates the observed R2 values If spatial effects are present, and you dont account for them, your model is not accurate! Area of application Research, patterns ,segregation and trend analysis, neighborhood effects, diffusion, Movements Estimation of an unknown from the values of known surrounding values. There is an assumption that point closer to one another have similar as such We can therefore say that the degree of change between point values is proportional to the distance between them

Causes of price fluctuation Divergence between planned output and realized output Speculative activities of middlemen Seasonality in Production and Marketing Change in demand and Supply Types of Price fluctuation Seasonal Price variation Cyclical Price variation Measures of Reducing price Variation Price Control Output Control Contract Sale 1. Index Number a. Price Relative b. Ordinary index numbers i. Ratio of aggregates a. Laspeyres index b. Pashe formula ii. Average of Relative 2. Parity price This is a price floor level for in developed countries such that farmers purchasing power will not fall below the parity price Uses of index number a. Comparism of Welfare between periods b. Prices and Quantity comparism c. Computing appropriate price for commodity for price control Three Kinds of ways on How to represent spatial data with GIS facility : a. Point base pattern interpolation b. Line base/topology interpolation or continuous spatial surface c. Polygon or lattice data and Area base interpolation When do you need to do Spatial Data Analysis Spatial data analysis are needed if we suspected a difference across space. In this difference in phenomena variable value or difference in relationship between phenomena through covariance and also when using it for referencing. The good idea behind spatial effect is the ability to explore and tell more about the subject under study. The principal purpose spatial analysis is to provide data in a coherent and overview of the data as well as with a clear manifestation of the data presented. There are many different types and different forms of spatial data analysis depending on the interest of the user. In this commodity price will be examine because of its relevant to marketing in agriculture.

Organizational Expansion

There two ways in marketing where for growth in Marketing Integration Diversification