3.3.3 Segmentation, targeting, positioning Flashcards
8 what is segmentation
the process of identifying different groups with similar needs
known as market segments
8 what is an example of segmentation
toy market- boys and girls, age groups
8 what are four types of segmentation
demographic
geographic
income
behavioural
8 what is demographic segmentation
refers to characteristics of people in target population
age or gender
how we segment in society anyway
8 what is geographic segmentation
groups needs and want based on what area target populations live in
Iceland vs Nigeria
8 what is Income segmentation
needs and wants based on income
high vs low
high- saving and investing in products
low- borrowing and loaning
8 how is income segmentation grouped
done on socio-economic grouping and profession
8 what are the 6 categories of grouping
A
B
C1
C2
D
E
8 what is A
higher managerial
adminstrative
8 what is B
intermediate managerial
administrative
8 what is C1
supervisors, clerical, junior managerial
8 what is C2
skilled manual workers
8 what is D
semi and unskilled manual workers
8 what is E
casual labour
8 what is behavioural segmentation
what customers actually do in their lives
when they buy, how much, brand loyalty, benefits they want from products, satisfy needs or achieve status
8 why is segmentation valuable
understand what different groups want
enables more focused and efficient marketing
balance desire to meet customers needs with practicality
8 what is positioning
identifies the benefit and price combination compared to competitors
how the product is viewed relative to competitors
8 what is market mapping
analyses market conditions to identify position of one product relative to others in the terms of a given criteria
plot where your product should sit
8 how might a clothes business map their market
expensive and cheap
modern and classic
8 if a business offers more benefits…
makes them competitive, charge a higher price
8 if a business charges a lower price…
makes them competitive, can offer fewer benefits
8 if a business offers fewer benefits, or same as competitors…
charges a higher price, becomes uncompetitive
8 if a business cannot offer more benefits…
charges a lower prices, offering more benefits will cost the business more
8 what factors affect position
brand image
price
product
services
8 what influences the position of a product
strength of a business
innovation of a business
competitors
market conditions
8 how does strength of a business affect a products position
very efficient will create lower prices, or be large and have bargaining power over suppliers, low cost provider
8 how does innovation of a business affect a products position
highly skilled employees, resources and systems will all help to encourage development of ideas
8 how does competitors affect a products position
produce market mapping to find out what already exists in the market and identify any gaps they can satisify
8 how does market conditions affect a products position
external influences by analysing PEST-LEC model
8 what is targeting
focus on a particular segment
must have sufficient demand and potential profit
be competitive and gain sales
9 what is a niche market
occurs when a business decides to focus on a specific segment of a larger market
9 advantages of a niche market
less competition
high market share
charge higher prices
appeals to a small target
move into mass market easier
9 disadvantages of a niche market
small market
gain competition easily
low target people
total profit is usually low
if niche grows, it will become mass
9 what is a mass market
when a business decides to provide products that meet a large number of peoples needs
no matching a specification portion of market
9 advantages of mass marketing
more customers = more revenue and profits
9 disadvantages of mass marketing
high investment needed
more promotional techniques required
more competition
increase niche providers to reduce demand
9 examples of mass market products
coca-cola
ford
iPhone
cadbury
walkers
9 internal reasons for change?
financial position- level of investment
staff- new market opportunities
operations- greater efficiences, lower costs
objectives- new managers
9 external reasons for change
political- brexit
economic- growing economy
social- attitude in life
technological- internet usage
legal- law changes
environmental- consumer awareness
competition- benefits may reduce
9 what are consumer products
brought by individuals, consume ourselves or give to others
millions of customers targeted
large numbers justify national advertising
9 what are types of consumer products
convenience
shopping
speciality
9 what is convenience items
milk, newspaper
don’t travel far for the products
wide availability is important
9 what is shopping goods
compare features and price between different options
visit several stores before deciding
show benefits compared with rivals
9 what are speciality items
sports car, rolex watches
think about purchases for years
willing to travel far to buy
brand is very important
9 what are industrial products
products sold to businesses, used in own processes
professional buyers
less interested in packaging, more interest in technical performance
understand exact vale represented, improve their competitiveness
9 what four things influences the marketing mix
positioning in the market
type of product
external influences
internal influences
