3.3.3.1 Flashcards
segmentation, targeting and positioning
what is market segmentation?
he process of dividing a broad consumer or business market into smaller groups
what are characteristics of market segmentation?
- income
- demographic
- geographic
- behavioural
what does demographic mean?
factors such as age and gender e.g. life insurance, car insurance, deodorant, perfume
what does geographic mean?
divides a market based on location
what does behavioural mean?
based on factors like when people buy and why e.g. young professionals opt for ready meals
what does income mean?
divides a market based upon incomes
what are the benefits to market segmentation?
- helps businesses to understand their consumers in more detail
- easier to develop products to meet the wants and needs of customers
- allows a business to be more competitive
- leads to higher levels of customer loyalty
- allows a business to grow their market share over time
what does segment mean?
divides the market into groups with similar needs
what does target mean?
decides which segment to focus on and appeal to the group
what does position mean?
position the product in customers minds as better than competition
how does a business find a marketing segment?
- market mapping -> to understand levels of competition
- PESTLE
- SWOT
- market research
