What Is a Market Area?

Regarding the regional market, there are three definitions1: A regional market refers to a market that is restricted to a certain region due to imperfect markets and the free circulation of goods and labor across the country. The definition of a regional market summarizes the relatively closed characteristics of a regional market. Definition 2: Regional market refers to the supply and demand and trading relationships and trading venues for various goods, services, and securities in the first-level comprehensive economic zone identified based on economic homogeneity or cohesion. Definition 3: Regional market is actually a concept of modern marketing segment market, or a theory of segmenting customer groups.

Regional market

Regarding the Regional Market, there are three definitions1:

1) Regional market is a geographical concept

Because between regions

Regional market development is "planned marketing", because regional market is a relative concept, it is important for companies to handle the relationship between local and overall in the process of marketing. Many foreign companies have also experienced several changes in the concept of production and marketing: from production to sales to production to sales, to emphasis on the integration between production and sales, and to emphasize the planning and foresight of sales and production.

"Planned marketing" reflects the planning and orderliness of the development, production, and sales links, as well as the initiative of the enterprise itself. "Has a plan" means that under the circumstances of its own strength and limited visibility, the company will highly intensify its market investment resources and become a unified combat team. (Develop market-oriented sales targets, review the situation, and formulate a phased marketing plan. ) In order to exert the greatest lethality (attack power); at the same time, it also shows the planning of the company's regional market development (such as easy first, then difficult, focus first, then general; first concentrate on the superior forces to attack the easy-to-enter market, and win local victory, Gradually expand market bases, etc.).

The essence of a market economy is a competitive economy. As a market-oriented enterprise, if you want to develop steadily in a strong market, you must establish a clear and stable regional market. Enterprises can create local advantages in a limited space and win a larger market share, thereby effectively resisting the competitive offensive and saving and strengthening themselves. This is a sharp tool for enterprises to win in competition.

Rather than connect with competitors in the overall market, it is better to create advantages in the regional market; rather than occupying a very small market share in the broad market range, it is better to increase market share in certain regional markets-for large companies, This is especially true for SMEs.

1. Without establishing a base on which an enterprise depends-a clear and stable regional market, expand the overall market (that is, the national market).

The city development activities have neither clear thinking nor strategies, nor specific and feasible measures, and they are very random and blind. There are two trends in product sales:

1) "Guerrilla War"-"Guerrilla Warfare"-wherever it can be sold, as much as it can be sold;

2) "Pepper pepper" type of "full-strike battle"-widely spread the net, sowing everywhere, and strive to "wide planting and thick harvest."

The above approach may achieve a certain amount of sales to a certain extent, but its disadvantages are obvious: the absence of a clear regional market target is tantamount to the sea going out of sail, and it is difficult to achieve the company's various operating indicators. Second, there is no stable market base, lack of strong market support, it is difficult to form a competitive advantage, and it will eventually lead to the "Huang Chao, Shi Da Kai" ending. This is an irrational marketing behavior that seeks quick success or profit, and is extremely harmful to the medium and long-term development of the enterprise.

2. Make the market "cooked rice"

"Cooked raw rice" means that when the rice is half-baked, there is no source of fire. Specifically, to develop a market means to enter a market blindly. On the basis of a clear investigation and grasp of the market, the interests of dealers cannot be rationalized in the operation of the market. Once the market changes, the enterprise is unable to enter and unable to withdraw. In a dilemma, it is necessary to abandon the developed market. Re-development of such a market often requires 2 to 3 times the price. Therefore, it is important to choose and develop the right regional distributor.

Such as: TCL Zhengzhou company has also eaten raw rice. For example, Kaifeng originally had a dealer, who was very smart, had a lot of TCL ace lottery power, and had a strong retail capacity, but later he saw that the home appliance industry had a relatively small profit, coupled with the difficulty of operating the funds, he invested the funds in other industries The trump card suddenly lost support in the Kaifeng market, and sales fell sharply. Of course, this is mainly the reason for the dealer, but it is undeniable that we have shown naivety and inexperience when choosing a dealer or dealing with the dealer.

3 It is not clear where their regional market goals are, and clarifying regional market goals is the key to the success or failure of an enterprise's market development.

4 Without clear measurement standards and quantitative market information, the operation of enterprises has become blind and random.

5. Without a thorough implementation plan, a set of plans and various contingency measures that are actively checked on a monthly and quarterly basis, the company has succeeded in the operation and does not know why, and failed to know why.

6. There is a lack of coordination between the submarkets of the regional market.

7. The company failed to grasp the best time and method to enter the regional market.

8. Corporate marketing concepts fall into a misunderstanding, and marketing is lacking in skills.

9. Failure to comprehensively consolidate and maintain regional markets.