MARKET CATEGORY Meaning and
Definition
-
Market category refers to a classification or grouping of products or services that share similar characteristics, purposes, or uses, and are targeted towards a specific group of consumers. It is a way to organize and categorize products based on their shared characteristics and customer needs. The market categorization helps companies understand their target market, competition, and overall marketing strategy.
A market category comprises products or services that are closely related in terms of their function, features, benefits, or customer needs they fulfill. For instance, within the technology sector, market categories can include smartphones, laptops, wearable devices, or gaming consoles. Each category has its distinct target audience, competitive landscape, and marketing strategies.
Understanding and identifying the appropriate market category is crucial for companies as it aids in better positioning their products or services in the market. This categorization enables businesses to assess their competition, establish effective marketing campaigns, define pricing strategies, and tailor their product offerings to meet customer demands.
Market categories can evolve over time as customer preferences change or as new innovations arise. Additionally, companies may create sub-categories within a market category to further differentiate their products or services and target niche markets. Overall, market category serves as an essential tool for businesses to identify, analyze, and address market segments, providing a framework for effective marketing efforts and strategic decision-making.
Etymology of MARKET CATEGORY
The word "market" originated from the Latin word "mercatus", which meant "trading" or "buying and selling". It later evolved into the Old English word "mearcet". In medieval times, a "market" referred to a public gathering where people would come to buy and sell goods.
The word "category" came from the Latin word "categoria", which was derived from the Greek word "kategoria". It originally meant "accusation" or "assertion". However, it began to be used in philosophy by Aristotle to classify or arrange different things into specific groups or classes.
The term "market category" is a combination of these two words. It refers to the classification or grouping of products or services based on similarities, characteristics, or consumer needs within a specific market or industry.
