Final answer:
Creating a market-product grid involves developing marketing actions for each market segment, which requires an understanding of a firm's production and cost conditions as well as the competitive market structure defined by factors like market power and product similarity.
Step-by-step explanation:
An important part of creating a market-product grid is to develop marketing actions for each market segment. This involves understanding the production and cost conditions for each firm, as well as the market structure for the product in question. Market structure is a key concept in determining how competitive an industry is, which can be defined by several factors including market power, product similarity, entry barriers, and the basis of competition such as price or advertising.
When analyzing market structure, questions such as 'How much market power does each firm possess?', 'How similar is each firm's product to those of other firms in the industry?', and 'How difficult is it for new firms to enter the industry?' are essential for understanding the competitive landscape and for developing effective marketing strategies.