3.3.3. Making marketing decisions Flashcards

1
Q

Market Segmentation

A

-Splitting the market into different groups
-Allows your marketing department to focus on the subset of customers that are most likely to purchase your products/services

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2
Q

Demographic segmentation

A

-Identifies subgroups
~Age
~Gender
~Level of education

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3
Q

Geographic segmentation

A

-Based on where people live
-People in different geographical areas display different characteristics and needs
~South East of England is generally warmer than Scotland

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4
Q

Income segmentation

A

-Based on income, using socio-economic groupings

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5
Q

Behavioural segmentation

A

-Based on behavioural patterns of the customer rather than characteristics
~Reason for making a purchase (e.g needs/rewards
~Brand loyalty
~Method of purchase (e.g online/in-store)

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6
Q

Benefits of segmentation

A

-Narrows down the market
-Easier to sell relevant products
-Expect to lead to more sales revenue
-Improve promotion

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7
Q

Drawbacks of segmentation

A

-Stereotypes
-Doesn’t guarantee sales
-Needs to be up to date
-Markets are forever changing

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8
Q

Targeting

A

Mass–> try to sell to as many people as possible
Niche–> smaller subset of the mass market

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9
Q

Positioning

A

-Uses market mapping
-Influenced by size of the gap, marketing conditions, internal constraints

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10
Q

Mass market advantages

A

-Reach a wide range of people
-Large market
-Highest rate of success
-More potential customers
-More likely to make higher sales revenue

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11
Q

Mass market disadvantages

A

-More competition
-Less opportunity for USP
-Higher production costs
-Higher advertising costs

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12
Q

Niche market advantages

A

-Less competition
-More opportunity for USP
-Better relationship with customers
-Potential for higher profits/salves revenue

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13
Q

Niche Market disadvantages

A

-Less people to target to/customers
-Find out who to target to
-Spend more on market research

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