1.2, spotting a business opportunity Flashcards
what are 3 reasons why a business might use market segmentation
choosing promotion
market mapping
choosing market mix
what are 4 groups customers may be segmented into
age
location
disposable income
gender
why might a business use a market map
to identify a gap in the market by looking at what competitors offer
how do market maps work
competitors products are mapped against different variables based on the features that they offer
e.g products could be mapped based on their price and quality
the 4 main variables that a business focuses on to meet customers’ needs
price
convenience
quality
choice
4 ways that you could split market research data
primary market research
secondary market research
qualitive data
quantitative data
what is market segmentation
splitting up a market based on characteristics of customers
such as age or gender
what is one disadvantage for businesses that segment their market
they’re not focused on targeting their products, or marketing, to other people outside of this segment
this could stop potential customers from purchasing the business’ products and services
